Current Economic Review April 16, 2014

Brian Bonnenfant Project Manager

Center for Regional Studies University of Nevada, Reno

784-1771 bonnen@unr.edu

180,000

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Monthly Employment - Reno/Sparks MSA

Feb 2014 Total = 200,100 (+5.4%)

Jan-Dec 2008-7,000

Employees

Jan-Dec 2007+7,100

Employees

Jan-Dec 2006+13,300

Employees

Jan-Dec 2009-4,700

Employees

Jan-Dec 2010+5,900

Employees

Feb12-Feb13: +3,600

Feb13-Feb14: +10,200

Feb-13 Unemployment Rate: 10.1%

**Peak = 228,100 Emp

**Start of Great Recession

**End of Great Recession

(Not Seasonally-Adjusted)

Jan-Dec 2011+6,700

Employees

Jan-Dec 2012+8,900

Employees

Jan-Dec 2013+15,000

Employees

-25,000

-20,000

-15,000

-10,000

-5,000

0

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14

Recession

Month Over Month Employment Change - Reno/Sparks MSA

2012 Avg = 190,800

2011 Avg = 189,075

2010 Avg = 190,067

2009 Avg = 194,883

2007 Avg = 223,917 2008 Avg =

214,858(-4.0%)

(-9.3%)

(-2.5%)

(-0.5%)

(+0.9%)

2013 Avg = 196,425

(+2.9%)

(% of sector)

Professional & Business Services 2,200 8.7%Construction 2,000 24.1%Leisure & Hospitality 1,500 4.5%Retail 1,000 4.8%Education and Health Services 900 4.1%Transportation, Warehousing & Utilities 500 3.9%Manufacturing 500 4.3%Wholesale 400 4.7%Financial Activites 400 4.3%Local Government 100 0.7%

TOTAL 9,500

Between Jan 2013 & Jan 2014 - Reno MSAEmployment Increases by Sector

(% of sector)

State Government -400 -4.2%TOTAL -400

Employment Decreases by SectorBetween Jan 2013 & Jan 2014 - Reno MSA

0

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Employment by Industry - Western Nevada RegionConstruction

Manufacturing

Transp. & Warehousing

Retail

Finance & Insur.

Prof. & Tech. Services

Management of Companies and EnterprisesAdministrative and Waste ServicesEduc. Services

Health Care

Gaming Industry

Bars & Restaurants

Government

(Through 2nd quarter 2013. Source: Department of Employment, Training & Rehabilitation QCEW data) Carson City & Douglas, Lyon, Storey, & Washoe

Counties

Source: Department of Employment, Training, & Rehabilitation 2008-2013 3Q 2013 % of TotalIndustry 2008 2009 2010 2011 2012 2013* % Ch. Empl. Empl.Natural Resources and Mining 64,220$ 75,192$ 115,180$ 132,808$ 81,588$ 66,820$ 4.0% 342 0.2%Construction 49,660$ 49,348$ 48,100$ 48,672$ 49,556$ 47,545$ -4.3% 10,687 5.6%Manufacturing 53,924$ 52,936$ 51,896$ 53,560$ 53,300$ 51,619$ -4.3% 11,843 6.2%Trade, Transportation and Utilities 36,764$ 37,024$ 37,492$ 38,064$ 38,688$ 39,849$ 8.4% 42,567 22.4%Information 50,596$ 51,532$ 54,028$ 58,084$ 59,852$ 58,864$ 16.3% 1,930 1.0%Financial Activities 52,364$ 51,272$ 52,832$ 54,964$ 58,448$ 59,991$ 14.6% 9,115 4.8%Professional and Business Services 50,128$ 50,440$ 50,856$ 53,092$ 54,496$ 51,965$ 3.7% 27,026 14.2%Education and Health Services 48,776$ 48,828$ 48,672$ 48,932$ 50,128$ 48,412$ -0.7% 36,801 19.3%Leisure and Hospitality 22,256$ 21,840$ 21,788$ 22,152$ 21,944$ 22,325$ 0.3% 35,901 18.9%Other Services 31,148$ 33,072$ 33,904$ 34,684$ 36,244$ 36,157$ 16.1% 5,428 2.9%Public Administration 58,448$ 59,488$ 59,592$ 60,372$ 59,800$ 60,857$ 4.1% 8,608 4.5%Unclassified 58,240$ 66,456$ 72,176$ 72,644$ 59,852$ 65,815$ 13.0% 139 0.1%All Industries 42,172$ 42,224$ 42,380$ 43,004$ 43,576$ 43,229$ 2.5% 190,387 100.0%* Through 3rd Quarter 2013

> Inflation 31.1%Consumer Price Index (West; <1.5M) -0.6% 1.0% 3.0% 1.7% 1.1% 6.3% < Inflation 68.9%

2008-2013 Inflation

Wages, Inflation, & EmploymentWashoe County, Nevada

Wage Growth

Area Name

Per Capita Earned Income

(by Place of work)

US RANK

Per Capita Unearned

Income US

RANK

Per Capita Personal Income

US RANK

Douglas, NV 22,214$ 1,232 17,913$ 31 54,199$ 191 Washoe, NV 27,692$ 716 12,076$ 172 43,396$ 683 Carson City , NV 34,478$ 358 10,089$ 361 42,236$ 782 Esmeralda, NV 27,790$ 707 9,615$ 448 44,201$ 625 Churchill, NV 31,753$ 495 7,981$ 837 47,464$ 427 Storey, NV 50,625$ 75 7,121$ 1,153 34,656$ 1,768 Mineral, NV 19,129$ 1,662 7,104$ 1,157 34,965$ 1,704 Nye, NV 16,783$ 2,028 7,047$ 1,178 33,773$ 1,930 Clark, NV 26,647$ 804 6,954$ 1,222 36,676$ 1,437 White Pine, NV 30,612$ 552 6,469$ 1,404 41,843$ 814 Humboldt, NV 36,830$ 279 6,457$ 1,408 45,690$ 510 Lincoln, NV 15,878$ 2,167 6,208$ 1,514 25,507$ 3,016 Above Median

Lyon, NV 12,350$ 2,667 5,914$ 1,674 30,368$ 2,511 Below MedianLander, NV 49,435$ 84 5,584$ 1,874 47,999$ 397 Eureka, NV 246,849$ 2 5,534$ 1,906 40,304$ 964 Elko, NV 28,756$ 652 5,259$ 2,075 42,201$ 784 Pershing, NV 19,016$ 1,690 4,130$ 2,709 27,703$ 2,859

Total Number of Counties: 3,113 Unearned income includes rents, interest, & dividendsSource: Bureau of Economic Analyses

Per Capita Income - 2012

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%1Q

-20

05

1Q -

2006

1Q -

2007

1Q -

2008

1Q -

2009

1Q -

2010

1Q -

2011

1Q -

2012

1Q -

2013

Percentage Change in Quarterly Taxable Sales

NEVADA CLARK

WASHOE BALANCE

Jan-14 = +0.5% Feb-14 = -2.6%

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

$110.00

$120.00

FY2014*FY2013FY2012FY2011FY2010FY2009FY2008

Downtown Reno Suburban Reno Sparks Non-Gaming

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

FY2014*FY2013FY2012FY2011FY2010FY2009FY2008

Downtown Reno Suburban Reno

Sparks Non-Gaming

*Through February 2014

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Visitors - Washoe County

Annual Change in Cash-Occupied Rooms

Jan & Feb 2014: -1.0%

*Through February 2014

Average Cash Rates

341,935

417,379 421,593427,704

432,324

341,415

421,407 425,710 429,908 433,731

300,000

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340,000

360,000

380,000

400,000

420,000

440,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Washoe County Population Estimates (2000-2013)

Washoe County (State Demographer)

Washoe County (Census Bureau)

Mobility in Past Year by Age Range of ResidentWashoe County, Nevada

Source: US Census Bureau

2007-2012 % Change is 10%-49%2007-2012 % Change is 50%-99%2007-2012 % Change is 100% or Greater

Moved from Different County or State 2007 2008 2009 2010 2011 2012 2007-2012 % ch.Total: 23,474 24,997 18,503 25,226 23,527 22,833 -2.7%

1 to 4 years 1,151 1,618 1,091 1,397 1,180 849 -26.2%5 to 17 years 3,069 3,229 2,004 2,694 3,354 2,468 -19.6%

18 and 19 years 2,506 2,112 1,352 1,957 2,049 2,795 11.5%20 to 24 years 2,517 3,381 1,465 3,173 3,005 4,084 62%25 to 29 years 3,035 2,690 2,010 2,924 3,161 2,508 -17.4%30 to 34 years 1,601 1,958 1,234 2,767 1,030 2,084 30.2%35 to 39 years 1,355 1,618 1,650 1,433 2,216 1,216 -10.3%40 to 44 years 1,501 1,697 893 1,559 1,378 886 -41.0%45 to 49 years 1,951 1,545 593 1,754 1,640 1,084 -44.4%50 to 54 years 1,175 967 1,697 901 1,186 1,699 44.6%55 to 59 years 1,125 907 1,021 2,294 846 894 -20.5%60 to 64 years 1,146 742 1,559 792 486 929 -18.9%65 to 69 years 220 640 733 418 694 714 224.5%70 to 74 years 419 441 465 609 446 165 -60.6%

75 years and over 703 1,452 736 554 856 458 -34.9%65 years and over 1,342 2,533 1,934 1,581 1,996 1,337 -0.4%

0

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New Monthly Home Foreclosures & Notice of Defaults - Washoe County

Notice of Default

Foreclosures

Assembly Bill 284 Implemented October 2011

Homeowner Bill of Rights Implemented October 2013

$90,000

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Median Sales Price of Short-Sales, Bank-Owned Resales, & Non-Distressed SalesWashoe County (Single-Family Homes)

Median Sale Price: Short Sale, MLS Median Sale Price: Bank Owned, MLS

Median Sale Price: Non-Distressed, MLS Median Sale Price: All Homes, MLS

$350,000

$225,700

$194,969

$268,330

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

1q02

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Greater Reno-Sparks Median Price

1% Quarterly Appreciation Rate

Peak (4Q05): $155,031 "Bubble"

1990-2001 = 0.97% average appreciationrate per quarter (blue trendline)

Quarterly Change2Q13: 13.2%3Q13: 2.3%4Q13: 0.0%1Q14: 2.6%

Annual Change1Q13-1Q14: 19.0%

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Median New

Home Sales PriceNu

mbe

r of N

ew H

ome

Sale

s

New Single-Family Home Sales & Median Values - Washoe County

Number of New Home Sales

Median New Home Sales Price

Peak: (Feb-06) $423,311

Peak: (Nov-05) 315 Sales

2008:1,063 sales (89/month)

2009:739 sales

(62/month)

2010:527 sales

(44/month)

2011:427 sales

(36/month)

2012:546 sales

(46/month)

$329,364

2013:714 sales

(60/month)

2010 % of Total 2011 % of Total 2012 % of Total 2013 % of Total$0 - $99,999 580 11.0% 1,024 17.6% 904 15.0% 296 4.9% -49.0%$100,000 - $199,999 2,646 50.0% 2,985 51.4% 2,931 48.7% 2,356 39.2% -11.0%$200,000 - $299,999 1,191 22.5% 1,067 18.4% 1,272 21.1% 1,843 30.7% 54.7%$300,000 - $399,999 401 7.6% 341 5.9% 454 7.5% 716 11.9% 78.6%$400,000 - $499,999 214 4.0% 150 2.6% 182 3.0% 319 5.3% 49.1%$500,000 - $749,999 164 3.1% 131 2.3% 178 3.0% 294 4.9% 79.3%$750,000 - $999,999 61 1.2% 52 0.9% 51 0.8% 83 1.4% 36.1%$1M & Greater 38 0.7% 54 0.9% 44 0.7% 102 1.7% 168.4%

Total SF Resales: 5,295 100.0% 5,804 100.0% 6,016 100.0% 6,009 100.0%

2010-2013 Percent Change

Washoe CountySingle-Family Home Resales by Price Range

Questions?

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