News Summary
The ongoing government shutdown has severely affected various industries in the Las Vegas valley, particularly real estate and food assistance programs. With high credit card debt and layoffs on the Strip, local real estate has seen a significant decline in transactions. Additionally, concerns over the potential loss of SNAP benefits for residents have risen, as demand for food assistance increases. Local leaders are worried about the broader impact on services, employment, and community welfare as the shutdown continues.
Las Vegas – The ongoing government shutdown, now lasting about one month, has had a significant impact on various industries in the Las Vegas valley. A recent report from WalletHub ranked Nevada among the top five states most affected by the shutdown, particularly due to its dependence on real estate activities.
Realtor Lance Sherman has observed a worrying trend in the local real estate market. Seasonal fluctuations are characteristic of the industry, with this period typically seeing less inventory and fewer purchases. However, the current situation has been worsened by high credit card debt and layoffs on the Las Vegas Strip due to the shutdown. Sherman noted that each real estate transaction typically supports over 20 jobs, including roles for lenders, inspectors, appraisers, and movers, indicating that a slowdown in real estate activity can lead to significant job losses in the area.
Sherman’s team monitors real estate trends weekly, revealing that inventory levels have reached an all-time high since November 2022, while price reductions have also peaked at historical levels. This change has led to a significant shift in market dynamics, with four to five sellers reaching out for every buyer. A September report from Redfin corroborated these findings, noting that homes are remaining on the market for extended periods, which further highlights the ongoing market shift.
Despite the challenging conditions, Sherman reassured potential buyers and sellers to remain strategic, pointing out that home appreciation in Las Vegas had increased by 40% to 50% since the onset of the COVID-19 pandemic. He emphasized that while there may be a recent reduction in prices and activity, it would not greatly diminish the overall gains achieved in the housing market.
The other states ranked among the top five most affected by the government shutdown include Florida, Delaware, Arizona, and Hawaii.
In addition to real estate woes, Three Square Food Bank in Las Vegas reported serious concerns regarding the possible loss of Supplemental Nutrition Assistance Program (SNAP) benefits due to the shutdown. This potential loss could affect tens of thousands of residents by November. The president and CEO of Three Square highlighted the critical nature of SNAP assistance, explaining that it provides nine meals for every meal supplied by the food bank, making it essential for low-income families in the area.
Even prior to the shutdown, Three Square experienced a 16% increase in demand for food assistance over four months. Nevada lawmakers are currently discussing potential changes to SNAP, which may restrict benefits to U.S. citizens and green card holders who meet certain eligibility criteria. Starting November 1, individuals deemed ineligible under a new law may also see a termination of their SNAP benefits.
Additionally, approximately 70 federal employees working in the agency responsible for nuclear stockpile modernization in Nevada have been furloughed as a result of the shutdown. This furlough is part of a larger group of around 1,400 staff members in the National Nuclear Security Administration facing similar circumstances nationwide. Although these temporary layoffs should not immediately affect contractors, many could be furloughed if the shutdown continues, disqualifying them from back pay.
Currently, there are no immediate risks to national security, though the ongoing shutdown may slow down modernization and testing projects. U.S. Senator Catherine Cortez Masto has diverged from Senate Democrats by supporting measures intended to keep the government operational amidst the crisis. The deadlock in Washington, D.C., centers on disputes related to Affordable Care Act subsidies and ongoing negotiations between political parties.
Local leaders and officials in Nevada are increasingly expressing concerns about the substantial impacts of the government shutdown, particularly regarding services, food assistance, and local employment throughout the state. As the situation continues to evolve, many are anxiously awaiting its resolution and the effects it will create for the Las Vegas community.
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Additional Resources
- Fox5 Vegas: Benefits Nevada Families at Risk During Federal Government Shutdown
- Wikipedia: Government Shutdown
- 8 News Now: Government Shutdown Impacts Nevada Housing
- Google Search: Government Shutdown Impacts
- News 3 LV: SNAP Benefits at Risk for Nevadans Amid Program Changes
- Google Scholar: SNAP Benefits Shutdown
- Review Journal: Federal Nuclear Workforce in Nevada Furloughed
- Encyclopedia Britannica: Furlough
- The Center Square: Federal Employees Furloughed
- Google News: Federal Employee Furlough
Author: STAFF HERE LAS VEGAS WRITER
The LAS VEGAS STAFF WRITER represents the experienced team at HERELasVegas.com, your go-to source for actionable local news and information in Las Vegas, Clark County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Electric Daisy Carnival, World Series of Poker, and Consumer Electronics Show. Our coverage extends to key organizations like the Las Vegas Chamber of Commerce and Three Square Food Bank, plus leading businesses in hospitality and entertainment that power the local economy such as MGM Resorts International, Caesars Entertainment, and Las Vegas Sands. As part of the broader HERE network, we provide comprehensive, credible insights into Nevada's dynamic landscape.
