Reno – a formerly Boom or Bust kind of place.January 29, 2019

I try to seek out intellectual conversation – it’s a nice break from the sales talk or social media scrolling or never-ending onburst of less- than- breaking news about our elected officials’ inability to fulfill their job requirements. Lately my favorite question to ask locals is: do you think our local economy will fair better in a recession that it did last time?

You may have noticed a Round Table I recently recorded with some key real estate players. If you missed it, you are going to really have to search because I didn’t want to overshare. (Just kidding, click here.) The supply and demand issue alone is going to hold up the local housing market for years to come. We are certainly noticing a softening in the market over the past two months but overall – there are not going to be enough homes for the people living and moving into our area. So home values will continue to appreciate. The question is a lot bigger than just the real estate market though.

Our local economy has done quite a bit of evolving as our city exploded over the past 8 – 10 years.

When I look around at all of the new businesses here, it’s not hard to notice that there is more diversity now. This is one of the most amazing consequences of the growth we’ve seen. We now have amazing restaurants, {even more} motivated entrepreneurs taking risks on great new concepts, fancy bars and more choices when it comes to shopping. Overall, I think it’s fair to say Reno has gained a lot more culture which is nice….because we really needed it.

During the Great Recession, our economy was highly reliant on the Tourism sector. Not that we aren’t anymore. Tourism is 2.7% of the national GDP but in Reno it’s almost 15%. Plus the hospitality in Reno goes a lot further than just casinos now – we can attract other kinds of travelers. So that’s definitely a key component for us. But when money gets tight for Americans, they tend to travel less. That being said – we have other industries to help keep local people employed this time around from technology to manufacturing and warehousing.  This is going to be truly key.

That makes me feel a lot more positive about Reno’s ability to sustain a recession. Today, I debated this subject with Steve Rose, from Legacy Wealth Planning and I will share that video in an upcoming post. Stay tuned…