Recovering from the Great Recession in the U.S. and Nevada
Recovering from the Great Recession in the U.S. and Nevada
Recovering from the Great Recession in the U.S. and Nevada
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5/23/2011<br />
<strong>Nevada</strong>’s Economy<br />
• Hous<strong>in</strong>g prices fell more than elsewhere, most mortgages<br />
underwater.<br />
• Personal <strong>in</strong>come had been grow<strong>in</strong>g by 8% per year for<br />
previous decade. It decl<strong>in</strong>ed by 6% <strong>from</strong> 2008:1-2009:1, <strong>and</strong><br />
has been flat s<strong>in</strong>ce.<br />
• Gam<strong>in</strong>g <strong>in</strong> long-run decl<strong>in</strong>e – 17% of GSP <strong>in</strong> 1980s, 10% <strong>in</strong><br />
2007, 8% <strong>in</strong> 2009.<br />
• Construction boomed <strong>from</strong> 1997-2006, became largest share<br />
of any state.<br />
• Unemployment highest <strong>in</strong> country.<br />
200<br />
Inflation-Adjusted<br />
Hous<strong>in</strong>g Price Index<br />
California<br />
<strong>Nevada</strong> lagged<br />
California, <strong>and</strong> our<br />
<strong>in</strong>itial hous<strong>in</strong>g stock<br />
was smaller.<br />
1980 = 100<br />
100<br />
USA Average<br />
<strong>Nevada</strong><br />
- 37%<br />
- 16%<br />
- 49%<br />
They came here<br />
look<strong>in</strong>g for deals.<br />
Our construction<br />
sector was <strong>the</strong><br />
country’s largest.<br />
0<br />
1980 1984 1988 1992 1996 2000 2004 2008<br />
Quarterly FHFA Data<br />
Underwater<br />
mortgages:<br />
USA 23%<br />
CAL 33%<br />
NEV 66%<br />
10
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