Las Vegas market focus: emerging real estate trends in 2025
Our Las Vegas market focus provides market, regional and sector analysis, as well as economic insights from our team of experts.
Economic overview
Nevada's economy showed mixed trends in 2024. Growth prospects for 2025 remain, but challenges may limit stronger expansion. In February 2025, the state's unemployment rate hit 5.8 percent, the highest in the US.
In the Las Vegas-Paradise metropolitan statistical area (MSA), the unemployment rate was 5.9 percent, the highest nationwide. Seasonally adjusted employment in this area is rebalancing post COVID-19, with non-farm employment decreasing by 3,600 jobs (0.3 percent) in February 2025.
The leisure and hospitality sector saw declines, with employment dropping from 305,179 in May 2024 to 298,384 in February 2025.
Construction market overview
The Infrastructure Investment and Jobs Act will direct over US$4bn to Nevada, with the aim to revitalise the state’s economy and support the construction market. The private commercial sector, however, has adopted a more cautious stance.
Some projects have been deferred amid uncertainties around interest rates and forthcoming policy directions under the Trump administration.
The hospitality and mixed-use sectors are the exception to this trend, with strong growth projected in the coming years, reflecting strategic priorities aligned with Southern Nevada's core strengths in tourism and entertainment.
Top three market challenges
The top three market challenges and considerations for construction in Las Vegas – in particular, regarding economic growth, improvement of residents’ quality of life, and positioning Las Vegas as an emerging real estate leader – are:
1. Labor shortages and skilled workforce gaps
Many skilled professionals are nearing retirement with insufficient younger workers to replace them. Economic uncertainties have compounded the problem, raising job stability concerns among prospective entrants to the industry.
2. Material lead times
Supply chain constraints, particularly for electrical and mechanical equipment, contribute to delays. Large equipment and mechanical items are currently experiencing some of the longest delays due to procurement.
External factors, including weather conditions and regional supply chain risks, add further uncertainty.
3. Entitlement and permitting timelines
Permit lead times in Las Vegas and surrounding areas typically range from six to 12 weeks. While Las Vegas and Henderson offer the potential for faster approvals, sometimes as short as 2 to 3 weeks, the likelihood of revisions or additional documentation requirements can extend these timelines.
