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Southern Nevada Market Update

Southern Nevada

Market Update

Southern Nevada Market Update

Local Economic

Fundamentals

Southern Nevada Market Update

Resident Population Growth

2017 to 2018

Rank State Annual Growth

1 Nevada +2.09% 2 Idaho +2.05% 3 Utah +1.87% 4 Arizona +1.74% 5 Florida +1.54% 6 Washington +1.48% 7 Colorado +1.42% 8 Texas +1.34% 9 South Carolina +1.25% 10 North Carolina +1.10% U.S. Average +0.62%

#1

Source: U.S. Census Bureau

Southern Nevada Market Update

Nevada Population and Growth

3.0 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Millions

Source: U.S. Census Bureau

2.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Southern Nevada Market Update

Clark County Population

2.2 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Millions

Source: U.S. Census Bureau

Southern Nevada Market Update

Clark County Population Growth

0% 1% 2% 3% 4% 5% 6% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Source: U.S. Census Bureau

Southern Nevada Market Update

Population Growth

Largest 30 Metropolitan Areas

2.2%

• 0.5%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

Source: U.S. Census Bureau

Southern Nevada Market Update

+2.2% (net) +48,337 Residents

Source: U.S. Census Bureau

Southern Nevada Market Update

+132 Per Day +5.5 Per Hour

Source: U.S. Census Bureau

Southern Nevada Market Update

State Surrenders Share

California 27,625 36.2% Florida 4,619 6.1% Texas 3,574 4.7% Arizona 3,409 4.5% Illinois 2,905 3.8% Washington 2,838 3.7% Hawaii 2,531 3.3% Colorado 2,380 3.1% Utah 2,198 2.9% New York 2,025 2.7%

Driver’s License Surrenders

To Nevada By State

Note: Based on driver’s license surrenders from the DMV for 2018. 20,000 or more 3,000 to 19,999 1,900 to 2,999 700 to 1,899 Under 700 Source: UNLV CBER

Southern Nevada Market Update

Fastest Job Growth in the Nation

Rank State Annual Growth

1 Nevada +3.3% 2 Arizona +2.8% 3 Washington +2.7% 4 Utah +2.7% 5 South Dakota +2.6% 6 Texas +2.5% 7 Florida +2.5% 8 Idaho +2.3% 9 Wyoming +2.0% 10 Alabama +1.9% U.S. Average +1.5%

Source: U.S. Bureau of Labor Statistics (June 2019 vs. June 2018)

#1 Nevada

Southern Nevada Market Update

Employment Growth

Largest 30 Metropolitan Areas

2.1% 0% 1% 2% 3% 4%

Source: U.S. Bureau of Labor Statistics (June 2019 vs. June 2018)

Southern Nevada Market Update

Employment

Las Vegas Metropolitan Area

500 600 700 800 900 1,000 1,100 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Thousands Present: 1,022,700

Source: U.S. Bureau of Labor Statistics

Southern Nevada Market Update

Employment Growth

Las Vegas Metropolitan Area | Year-over-Year

• 15%
• 10%
• 5%

0% 5% 10% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 96 Consecutive Months

• f Positive Growth

Source: U.S. Bureau of Labor Statistics

Southern Nevada Market Update

Employment Growth

Las Vegas Metropolitan Area | Last 12 Months

• 2,300
• 600

900 1,100 1,400 2,200 3,100 3,400 5,100 7,000 Trade, Transportation and Utilities Information Mining and Logging Other Services Manufacturing Government Education and Health Services Construction Financial Activities Professional and Business Services Leisure and Hospitality

Net Job Growth: + 21,300

Source: U.S. Bureau of Labor Statistics (May 2019 vs. May 2018)

Southern Nevada Market Update

Unemployment Rate

4.0% 3.4%

• 2%

0% 2% 4% 6% 8% 10% 12% 14% 16% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Variance Las Vegas MSA United States

Source: U.S. Bureau of Labor Statistics

Southern Nevada Market Update

Fast Growing Personal Income

Source: U.S. Bureau of Economic Analysis (2018 vs. 2017)

#3 Nevada

Rank State Annual Growth

1 Washington 6.8% 2 Utah 6.3% 3 Nevada 5.7% 4 Colorado 5.7% 5 Arizona 5.5% 6 Idaho 5.4% 7 Texas 5.3% 8 Florida 5.2% 9 Montana 5.0% 10 Oregon 4.9% Highest Lowest

Southern Nevada Market Update

Notable

Investments

Southern Nevada Market Update

Southern Nevada Market Update

$24 Billion

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Resorts World Las Vegas $4,200,000,000 Under Construction 2021 The Drew $3,100,000,000 Planned 2022 Jackie Robinson Arena and Hotel Project $2,700,000,000 Planned DND Las Vegas Stadium (65,000 Seats) $1,880,000,000 Under Construction 2020 Las Vegas Convention Center Expansion $1,400,000,000 Under Construction 2020 Union Village $1,200,000,000 Under Construction 2025 Henderson West $950,000,000 Planned 2028 Project Neon $900,000,000 Under Construction 2019 Majestic Las Vegas $850,000,000 Planned 2023 Vegas Extreme Park (The Edge) $800,000,000 Planned DND Palms Casino Resort Renovation $690,000,000 Under Construction 2019 Google Data Center $600,000,000 Under Construction 2020 Wynn Convention Center $425,000,000 Under Construction 2020 UnCommons $400,000,000 Planned 2021 Caesars FORUM Conference Center $375,000,000 Under Construction 2020 Astral Hotel and Casino $350,000,000 Planned 2022 Colosseum at Caesars Palace Renovations $250,000,000 Under Construction 2019 I-15 and Tropicana Interchange Reconstruction $200,000,000 Planned 2024

Note: Several projects have details that are not disclosed or to be determined. DND = “Did Not Disclose”. Totals may not sum due to rounding.

Southern Nevada Market Update

Project Cost Status Est. Completion Date Virgin Hotels Las Vegas (rebrand of Hard Rock Hotel & Casino) $200,000,000 Planned 2020 Circa Resort and Casino $200,000,000 Under Construction 2020 Sahara Las Vegas Renovation $150,000,000 Under Construction 2020 The STRAT Hotel & Casino Rebrand $140,000,000 Under Construction 2021 Las Vegas Monorail Extension to Mandalay Bay $140,000,000 Planned DND UNLV Medical School Building $125,000,000 Planned 2021 I-15/CC-215 Northern Beltway Interchange $110,500,000 Planned 2022 Elysian at the Hughes Center $100,000,000 Under Construction 2020 Kind Heaven $100,000,000 Under Construction 2020 Delta by Marriott $100,000,000 Under Construction 2022 Centennial Hills Hospital Expansion $95,000,000 Planned DND AC Hotel by Marriott $95,000,000 Planned 2020 Expo at World Market Center Las Vegas $90,000,000 Under Construction 2020 CSN Charleston, Henderson, and North Las Vegas Campuses Student Union $80,000,000 Under Construction 2019 U.S. 95 Widening $78,000,000 Under Construction 2019 Raiders Corporate Headquarters and Practice Facility $75,000,000 Under Construction 2020 New 215 Interchanges at Losee, Pecos, and Lamb $70,000,000 Under Construction 2020 Luxury Apartments at Twain/Dean Martin $65,000,000 Under Construction 2020

Note: Several projects have details that are not disclosed or to be determined. DND = “Did Not Disclose”. Totals may not sum due to rounding.

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Nevada State College Education Building $62,000,000 Planned DND Blue Diamond Widening $59,000,000 Under Construction 2020 New Las Vegas Municipal Courthouse $56,000,000 Planned 2021 Hampton Inn & Suites/Home2Suites $55,000,000 Under Construction 2020 Downtown Henderson $50,000,000 Under Construction 2021 Las Vegas Convention Center Loop $48,700,000 Planned 2021 Downtown Grand Hotel & Casino Third Tower $45,000,000 Under Construction 2020 Water Pipeline to Apex Industrial Park $42,000,000 Under Construction 2020 South Point Hotel Casino & Spa Renovation $40,000,000 Under Construction 2020 UNLV Howard R. Hughes College of Engineering Expansion $35,000,000 Planned DND New Smith Center Parking Garages $33,000,000 Under Construction 2019 Las Vegas Boulevard Repaving $33,000,000 Planned 2022 Monorail Station at MSG Sphere Las Vegas $32,000,000 Planned DND Fremont Street Experience Canopy and Mall Reconstruction $32,000,000 Under Construction 2019 UNLV Fertitta Football Complex [Practice Facility] $31,000,000 Under Construction 2019 UNLV Harry Reid Research and Technology Park Bldg. 3 $30,000,000 Under Construction 2019 Nevada State Industrial Park $28,000,000 Under Construction 2019 Sahara and Las Vegas Blvd Pedestrian Bridge $28,000,000 Planned 2024

Note: Several projects have details that are not disclosed or to be determined. DND = “Did Not Disclose”. Totals may not sum due to rounding.

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Henderson Hockey Arena $25,000,000 Planned 2020 Las Vegas Strip Bollards $22,000,000 Under Construction 2019 UNLV University Gateway Development Phase II $18,000,000 Under Construction 2019 McCarran Airport Infrastructure Improvements $8,000,000 Planned DND Treehouse Las Vegas $7,100,000 Under Construction 2020 Skyline Hotel & Casino Expansion $7,000,000 Under Construction 2020 El Cortez Hotel and Casino Renovations $6,000,000 Under Construction 2020 Neon Museum Expansion $3,000,000 Under Construction 2021 UNLV New Lee Business School Building DND Planned DND AREA15 DND Under Construction 2019 Henderson Executive Airport Expansion DND Under Construction 2019 Fairfield Inn by Marriott DND Under Construction 2019 Wynn West DND Planned DND MSG Sphere at the Venetian DND Under Construction 2020 TownPlace Suites Airport South DND Planned 2019 Paris Las Vegas Room Renovation DND Under Construction 2019 Showcase Mall Expansion DND Planned 2020 SpringHill Suites Marriott DND Planned 2021

Note: Several projects have details that are not disclosed or to be determined. DND = “Did Not Disclose”. Totals may not sum due to rounding.

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Residence Inn - Paradise DND Planned 2023 Aloft Hotel DND Planned DND The Element Hotel by Westin DND Planned DND Mardi Gras Hotel and Casino Redevelopment DND Planned 2023 Hotel Apache at Binions DND Under Construction 2019 Boyd Gaming Las Vegas Headquarters DND Planned DND Mixed-Use Project @ Flamingo/Valley View DND Under Construction 2021 Fremont Hotel and Casino Expansion DND Planned 2021 Switch Data Center Expansion DND Under Construction DND Howard Hughes Ballpark Hotel DND Planned DND TOTAL $24,119,300,000

Note: Several projects have details that are not disclosed or to be determined. DND = “Did Not Disclose”. Totals may not sum due to rounding.

Southern Nevada Market Update

Housing

Affordability

Southern Nevada Market Update

House Price Appreciation

House Price Index Growth

Rank State Annual Growth

1 Idaho +13.6% 2 Nevada +10.6% 3 Utah +8.9% 4 Tennessee +7.7% 5 Georgia +7.5% 6 South Dakota +7.4% 7 Alabama +7.3% 8 South Carolina +7.1% 9 Indiana +7.1% 10 Arizona +6.9%

#2 Nevada

Source: Federal Housing Finance Agency (Q1 2018 vs. Q1 2019). Note: Excludes District of Columbia.

Southern Nevada Market Update

House Price Index Growth

Largest 30 Metropolitan Areas

12.8% 0% 2% 4% 6% 8% 10% 12% 14%

Source: Federal Housing Finance Agency (Q1 2018 vs. Q1 2019)

Southern Nevada Market Update

Single Family Median Home Price

Largest 30 Metropolitan Areas

$298,900 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000

Source: National Association of Realtors (Q1 2019)

Southern Nevada Market Update

Housing Opportunity Index

Las Vegas MSA

13.0 88.7 52.7 10 20 30 40 50 60 70 80 90 100 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Source: National Association of Homebuilders

Southern Nevada Market Update

Ratio of Home Price-to-Income

0.0 1.0 2.0 3.0 4.0 5.0 6.0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Incomes Outstripped Home Prices Home Prices Outstripped Incomes

Source: SalesTraq and Applied Analysis

Southern Nevada Market Update

Growth in Values Since 2005

In Western States

9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nevada California Arizona Hawaii New Mexico Alaska Wyoming Oregon Colorado Washington Idaho Utah Montana

Source: National Association of Realtors (ACS and FHFA)

Southern Nevada Market Update

House Price Index

Las Vegas Metropolitan Area

232.4 50 100 150 200 250 300 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Source: Federal Housing Financing Agency (1995=100)

Southern Nevada Market Update

U.S. Mortgage Interest Rates

Fixed-Rate

3.5% 4.1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 15-Year 30-Year

Source: Freddie Mac

Southern Nevada Market Update

Average Apartment Rents

Las Vegas Valley

$1,112 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Source: REIS

Southern Nevada Market Update

Las Vegas Owner vs. Renter Comparative Analysis

Monthly Average Rents vs. Estimated Cost of Ownership

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 Renter Owner

Southern Nevada Market Update

New Home Market

Supply-Demand

Southern Nevada Market Update

38,705 3,793 9,709 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 TTM

New Home Closings

Las Vegas Area

Source: SalesTraq

• 60%
• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 TTM

Southern Nevada Market Update

• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% $395,664 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

New Home Median Closing Price

Las Vegas Area

Source: SalesTraq

Southern Nevada Market Update

New Home Market Share

As a Percentage of Total Home Sales

17.4% 0% 10% 20% 30% 40% 50% 60% 70% '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 TTM

Source: SalesTraq

Southern Nevada Market Update Actively Selling Subdivisions

224

100 200 300 400 500 600 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Source: SalesTraq

Southern Nevada Market Update

6 8 7 8 15 20 24

50 100 150 200 250 '13 '14 '15 '16 '17 '18 '19 Single Family Condo/Townhouse

Actively Selling Subdivisions

By Product Type

Source: SalesTraq (Excludes High- and Mid-Rises Built Prior to Displayed Periods)

3.4% 3.4% 6.7% 9.8% 10.7%

0% 2% 4% 6% 8% 10% 12% '15 '16 '17 '18 '19

Condo/Townhouse Share of Product Offerings

Southern Nevada Market Update

Employment Growth-to-Permit Ratio

Las Vegas MSA

2.81

1 2 3 4 5

1.19

Reflects the Number of New Jobs for Every New Home Being Constructed During the Period Reflects the Ratio Between the Total Number of Employees and Existing Housing Units

Source: United States Bureau of Labor Statistics, United States Census Bureau and Applied Analysis

Southern Nevada Market Update

Resale Home Market

Supply-Demand

Southern Nevada Market Update

58,522 46,395 10,000 20,000 30,000 40,000 50,000 60,000 70,000 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 TTM

Resale Home Closings

Las Vegas Area

Source: SalesTraq

• 3.1%
• 60%
• 40%
• 20%

0% 20% 40% 60% 80% '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 TTM

Southern Nevada Market Update

$272,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Resale Home Median Closing Price

Las Vegas Area

Source: SalesTraq

• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40%

Southern Nevada Market Update

Southern Nevada Market Update

Positive 95.8% Under Water 4.2%

Q1 2019

Positive 76.9% Under Water 23.1%

Q1 2015

Positive 27.3% Under Water 72.7%

Q1 2010

Nevada Homeowner’s Equity

Source: CoreLogic

Southern Nevada Market Update

Positive 95.8% Under Water 4.2%

Nevada

Homeowner’s Equity

Source: CoreLogic

Positive 95.1% Under Water 4.1%

United States

Southern Nevada Market Update

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Notices of Breach and Default

Clark County, NV

Notices of Trustee Sale

Clark County, NV

Trustee Deeds (Foreclosures)

Clark County, NV

Source: Clark County Assessor's Office

10,000 20,000 30,000 40,000 50,000 60,000 70,000 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Southern Nevada Market Update

Mortgage Defaults in Nevada

Mortgages Past Due or in Foreclosure

134,159 16,531 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Source: Mortgage Banker’s Association, National Delinquency Survey

Southern Nevada Market Update

Mix of Resale Closings

Distressed Sales (Short, Auction and REO)

27.2% 38.1% 63.0% 76.5% 83.9% 87.7% 92.8% 96.0% 96.1% 72.8% 61.9% 37.0% 23.5% 16.1% 12.3% 7.2% 4.0% 3.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% '11 '12 '13 '14 '15 '16 '17 '18 '19 TTM

Source: Applied Analysis/SalesTraq

Southern Nevada Market Update

2.7 1 2 3 4 5 6 7 8 9 10 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Effective Months of Availability

Multiple Listing Service

United States: 4.4 Months Southern Nevada: 2.7 Months

Source: MLS/SalesTraq

Southern Nevada Market Update

Effective Months of Availability

By Price Segment

2.4 3.3 2.2 1.8 1.9 2.6 2.4 3.3 3.2 5.3 11.2 Less than $100,000 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $249,999 $250,000 - $299,999 $300,000 - $349,999 $350,000 - $399,999 $400,000 - $449,999 $450,000 - $499,999 $500,000 - $999,999 $1,000,000 and Over

2.1 Months 3.4 Months

Source: MLS/SalesTraq

Southern Nevada Market Update

Effective Months of Availability

Southern Nevada Market Update

Median Days on the Market

Less Than 31 31 to 45 45 to 60 61 to 75 76 to 165

46 Days

U.S. Average Median Days on the Market

Source: SalesTraq, GLVAR/MLS, NAR

Southern Nevada Market Update

Median Days on the Market

Las Vegas Area Single Family Market

23 '11 '12 '13 '14 '15 '16 '17 '18 '19 10 20 30 40 50 60

June 2019: 23 Days June 2018: 12 Days

Source: SalesTraq, GLVAR/MLS

Southern Nevada Market Update

Southern Nevada

Market Update