Part 1 of an ongoing series:
Since 2010, the pawns have moved and the game began vigorously in the latest cycle of the timeless game. The growth player was moving swiftly, taking pieces from the resilient city and it was apparent that the offensive bulls would finally capture the city and once and for all stabilize its rocky past. The housing market was slowly stabilizing, the land grabs in downtown becoming more apparent each month, and the politicians have been screaming that the recovery is in sight as unemployment rates were falling.
In the ever-changing landscape of Las Vegas, downtown Las Vegas has seen its share of ups and downs. The heart of the city is resilient, and famous for reinventing itself time and time again. Now in the midst of another rebound over the past 4 years, the city may be taking a breather from the hype surrounding the 7-year itch of speculation.
Housing had crashed, jobs were lost and lives and credit scores were ruined. Rental markets soared the past four years with national increases of nearly 40-50 percent depending on the market. In downtown, residential living was provided by two foreclosed properties being open to the public for lease: The Ogden (formerly Streamline Tower), and JUHL located in the yet to up-and-come arts district.
Instantly, renters could lease a concrete and steel one bedroom for $1100 and 3 bedroom condos for $2000. These luxury condos were initially priced from $450,000 to more than $1 million. The time wasn’t right to release the units for sale – the economy was not stable and the job market wouldn’t support the mortgage debt. In fact, even in 2014, with the sales release of The Ogden, banks are not lending in Nevada on The Ogden as ownership levels are too low to obtain FHA backing.
The crowds rushed in, fueled by low initial lease rates while they fled from their underwater homes. The owners of JUHL and The Ogden reaped the rewards of the then current state of affairs, and total net worth and home ownership in America continued its decline on a national level. Las Vegas felt the full brunt of the collapse. With residents finally taking up residence in downtown, money poured into the city and the housing stimulated the jobs and business sector for both food and drink. Unfortunately, manufacturing has been shrinking in the United States for decades now, and a city built on the service industry is destined to fluctuate with the economy and the disposable income of its citizens.
