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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

Higher Lower

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 M 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 Millions

Source: U.S. Census Bureau

Southern Nevada Market Update

Clark County Population Growth

2.2% 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

Source: U.S. Census Bureau

Southern Nevada Market Update

Population Growth

Largest 30 MSAs

2.2%

• 0.5%

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

Source: U.S. Census Bureau

Southern Nevada Market Update

+2.2% (net) +47,355 Residents

Source: U.S. Census Bureau

Southern Nevada Market Update

+130 Per Day +5.4 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 +3.8% 2 Arizona +3.3% 3 Washington +3.2% 4 Utah +3.1% 5 Texas +3.1% 6 Wyoming +2.9% 7 Colorado +2.8% 8 Florida +2.7% 9 Georgia +2.6% 10 New Hampshire +2.6% U.S. Average +1.8%

Source: U.S. Bureau of Labor Statistics (December 2018 vs. December 2017)

#1 Nevada

Southern Nevada Market Update

Employment Growth

Largest 30 MSAs

3.4% 0% 1% 2% 3% 4% 5%

Source: U.S. Bureau of Labor Statistics (December 2018 vs. December 2017)

Southern Nevada Market Update

Employment

Las Vegas MSA

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 Thousands Present: 1,026,900

Source: U.S. Bureau of Labor Statistics

Southern Nevada Market Update

Employment Growth

Las Vegas MSA | 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 90 Consecutive Months

• f Positive Growth

Source: U.S. Bureau of Labor Statistics

Southern Nevada Market Update

Employment Growth

Las Vegas MSA | Last 12 Months

800 1,000 1,400 1,800 4,900 4,900 5,500 5,700 7,900 Information Mining and Logging Trade, Transportation, and Utilities Manufacturing Financial Activities Other Services Education and Health Services Professional and Business Services Construction Government Leisure and Hospitality

Net Job Growth: +33,900

Source: U.S. Bureau of Labor Statistics (December 2018 vs. December 2017)

Southern Nevada Market Update

Unemployment Rate

• 2%

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

Source: U.S. Bureau of Labor Statistics

Southern Nevada Market Update

Fastest Growing Personal Income

Source: U.S. Bureau of Economic Analysis (Q2 2018 vs. Q3 2018)

#1 Nevada Rank State Quarterly Growth Annualized Growth

1 Nevada +1.52% +6.21% 2 Washington +1.51% +6.16% 3 Arizona +1.33% +5.42% 4 Colorado +1.29% +5.27% 5 New Hampshire +1.25% +5.12% 6 Oregon +1.25% +5.10% 7 Utah +1.17% +4.75% 8 Pennsylvania +1.16% +4.71% 9 Texas +1.14% +4.65% 10 North Dakota +1.14% +4.63%

Southern Nevada Market Update

Notable

Investments

Southern Nevada Market Update

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Resorts World Las Vegas $7,000,000,000 Under Construction 2021 (Built in Phases) The Drew $3,000,000,000 Planned 2022 Jackie Robinson Arena and Hotel Project $2,700,000,000 Planned Spring 2020 Las Vegas Stadium (65,000 Seats) $1,800,000,000 Under Construction Jul-20 Las Vegas Convention Center Expansion $1,400,000,000 Under Construction Dec-20 (Built in Phases) Union Village $1,200,000,000 Under Construction 2025 (Built in Phases) Henderson West $950,000,000 Planned Q4 2028 Project Neon $900,000,000 Under Construction Summer 2019 Vegas Extreme Park (The Edge) $800,000,000 Planned TBD Palms Casino Resort Renovation $690,000,000 Under Construction Q4 2019 Google Data Center $600,000,000 Planned Dec-20 Caesars FORUM Conference Center $375,000,000 Under Construction Spring 2020 UNLV Medical School Building $230,000,000 Planned Late 2021 I-15 and Tropicana Interchange Reconstruction $200,000,000 Planned 2024 Hard Rock Hotel Rebrand and Renovations $200,000,000 Planned Fall 2020 Clark County Park Upgrades $150,000,000 Planned TBD Las Vegas Ballpark $150,000,000 Under Construction Mar-19 Stratosphere Renovation (The STRAT) $140,000,000 Under Construction 2021 MGM Grand Conference Center Expansion $130,000,000 Under Construction Early 2019 Las Vegas Monorail Extension to Mandalay Bay $110,000,000 Planned 2020 Elysian at the Hughes Center $100,000,000 Under Construction Fall 2020 SLS Las Vegas Renovation $100,000,000 Under Construction 2020 Kind Heaven $100,000,000 Planned August 2019 Centennial Hills Hospital Expansion $95,000,000 Planned DND CSN Charleston, Henderson, and North Las Vegas Campuses Student Union $80,000,000 Under Construction Fall 2019 U.S. 95 Widening $78,000,000 Under Construction Fall 2019 Downtown Las Vegas Expo Center $76,000,000 Under Construction June 2020

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Raiders Corporate Headquarters and Practice Facility $75,000,000 Under Construction July 2020 New 215 Interchanges at Losee, Pecos, and Lamb $70,000,000 Under Construction April 2020 Luxury Apartments at Twain/Dean Martin $65,000,000 Under Construction April 2020 Nevada State College Education Building $62,000,000 Planned DND Silverton Village $60,000,000 Under Construction 2019 New Las Vegas Municipal Courthouse $59,300,000 Planned January 2021 Blue Diamond Widening $58,560,000 Under Construction DND Hampton Inn & Suites/Home2Suites $55,000,000 Planned April 2020 The Venetian Resort Hotel Casino Pool Redesign $50,000,000 Under Construction May 2019 Downtown Henderson $50,000,000 Under Construction 2021 CIM Downtown Grand Third Tower $45,000,000 Under Construction 2020 Water Pipeline to Apex Industrial Park $42,000,000 Under Construction Late 2020 South Point Hotel Casino & Spa Renovation $40,000,000 Under Construction September 2020 UNLV Howard R. Hughes College of Engineering Expansion $35,000,000 Planned TBD New Smith Center Parking Garages $33,000,000 Under Construction September 2019 Fremont Street Experience Canopy and Mall Reconstruction $33,000,000 Planned May 2019 Fertitta Football Complex $31,000,000 Under Construction Spring 2019 UNLV Harry Reid Research and Technology Park Bldg. 3 $30,000,000 Under Construction Spring 2019 Sahara and Las Vegas Blvd Pedestrian Bridge $27,500,000 Planned January 2024 Southern Hills Hospital Behavioral Health Center $26,000,000 Under Construction 2019 UNLV University Gateway Development Phase II $18,000,000 Under Construction Q2 2019 Starwood Hotel (near Las Vegas Motor Speedway) $18,000,000 Planned 2019 Las Vegas Strip Pedestrian Bridge $16,900,000 Under Construction Jul-19 Mountain's Edge Sports Complex $16,000,000 Under Construction Early 2019 Residence Inn - St. Rose $16,000,000 Under Construction April 2019 McCarran Airport Infrastructure Improvements $8,000,000 Planned DND Treehouse Las Vegas $7,000,000 Planned Mar-19

Southern Nevada Market Update

Project Cost Status

• Est. Completion Date

Skyline Hotel & Casino Expansion $7,000,000 Under Construction Spring 2020 North Las Vegas Roadway Improvements $3,570,000 Planned DND Boulder Highway Upgrade Project $1,500,000 Under Construction Summer 2019 UNLV New Lee Business School Building DND Planned DND AREA15 DND Under Construction Dec-19 Circa Resort and Casino DND Planned December Henderson Executive Airport Expansion DND Under Construction Summer 2019 Northwest Las Vegas Fairfield Inn DND Under Construction DND Wynn Convention Center DND Under Construction Mar-20 Wynn West DND Planned TBD MSG Sphere Las Vegas DND Under Construction Late 2020 Home2 Suites - Dean Martin DND Under Construction January 2019 Fairfield Inn & Suites Airport South DND Under Construction April 2019 TownPlace Suites Airport South DND Under Construction May 2019 Paris Las Vegas Room Renovation DND Under Construction 2019 Showcase Mall Expansion DND Under Construction 2019 SpringHill Suites Marriott DND Planned April 2021 Residence Inn - Paradise DND Planned June 2023 Aloft Hotel DND Planned DND The Element Hotel by Westin DND Planned DND Mardi Gras Hotel and Casino Redevelopment DND Planned 2023 Monorail Station at MSG Sphere Las Vegas DND Planned 2020 Hotel Apache at Binions DND Under Construction Summer 2019 Boyd Gaming Las Vegas Headquarters DND Planned DND Howard Hughes Ballpark Hotel DND Planned DND Total $24.4 Billion

Southern Nevada Market Update

Housing

Affordability

Southern Nevada Market Update

Fastest House Price Appreciation

House Price Index Growth

Rank State Annual Growth

1 Nevada +15.0% 2 Idaho +13.0% 3 Utah +10.4% 4 Washington +9.9% 5 Colorado +9.8% 6 Florida +9.2% 7 Georgia +8.9% 8 Arizona +8.8% 9 California +8.6% 10 Tennessee +7.7%

Source: Federal Housing Finance Agency (Q3 2017 vs. Q3 2018)

#1 Nevada

Southern Nevada Market Update

House Price Index Growth

Largest 30 MSAs

18.1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Source: Federal Housing Finance Agency (Q3 2017 vs. Q3 2018)

Southern Nevada Market Update

Single Family Median Home Price

Largest 30 MSAs

$294,600 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000

N/A N/A

Source: National Association of Realtors (Q3 2018)

Southern Nevada Market Update

Housing Opportunity Index

Las Vegas MSA

13.0 88.7 47.6 10 20 30 40 50 60 70 80 90 100 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

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 MSA

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

Source: Federal Housing Financing Agency (1995=100)

Southern Nevada Market Update

U.S. Mortgage Interest Rates

Fixed-Rate

4.1% 4.6% 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

$1,097 $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

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 9,944 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 00 '02 '04 '06 '08 '10 '12 '14 '16 '18

New Home Closings

Las Vegas Area

Source: SalesTraq

13.8%

• 60%
• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% 00 '02 '04 '06 '08 '10 '12 '14 '16 '18

Southern Nevada Market Update

$410,000 $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

New Home Median Closing Price

Las Vegas Area

Source: SalesTraq

• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50%

Southern Nevada Market Update

New Home Market Share

As a Percentage of Total Home Sales

17.2% 0% 10% 20% 30% 40% 50% 60% 70% '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Source: SalesTraq

Southern Nevada Market Update Actively Selling Subdivisions

207 100 200 300 400 500 600 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Source: SalesTraq

Southern Nevada Market Update

6 8 7 8 15 20 50 100 150 200 250 '13 '14 '15 '16 '17 '18 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% 0% 2% 4% 6% 8% 10% 12% '15 '16 '17 '18

Condo/Townhouse Share of Product Offerings

Southern Nevada Market Update

Employment-Growth-to-Permit Ratio (E/P)

2.84 1.95

• 18
• 16
• 14
• 12
• 10
• 8
• 6
• 4
• 2

2 4 6 Las Vegas United States

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 47,875 10,000 20,000 30,000 40,000 50,000 60,000 70,000 00 '02 '04 '06 '08 '10 '12 '14 '16 '18

Resale Home Closings

Las Vegas Area

Source: SalesTraq

• 2.8%
• 60%
• 40%
• 20%

0% 20% 40% 60% 80% 00 '02 '04 '06 '08 '10 '12 '14 '16 '18

Southern Nevada Market Update

$260,000 $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

Resale Home Median Closing Price

Las Vegas Area

Source: SalesTraq

• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40%

Southern Nevada Market Update

Resale Price Appreciation

Las Vegas

22.3% or Greater 16.7% - 22.2% 13.2% - 16.6% 0.1% - 13.1% Data Not Available

Source: SalesTraq

Less than 0.0%

Source: SalesTraq

Southern Nevada Market Update

Positive 95.3% Under Water 4.7%

Q3 2018

Positive 74.6% Under Water 25.4%

Q3 2014

Positive 30.4% Under Water 69.6%

Q3 2010

Nevada Homeowner’s Equity

Source: CoreLogic

Southern Nevada Market Update

Positive 95.3% Under Water 4.7%

Nevada

Homeowner’s Equity

Source: CoreLogic

Positive 95.9% 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

Notices of Breach and Default

Clark County, NV

Notices of Trustee Sale

Clark County, NV

Trustee Deeds (Foreclosures)

Clark County, NV

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

Source: Clark County Assessor's Office

Southern Nevada Market Update

Mortgage Defaults in Nevada

Mortgages Past Due or in Foreclosure

134,159 18,424 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 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

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% 72.8% 61.9% 37.0% 23.5% 16.1% 12.3% 7.2% 4.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% '11 '12 '13 '14 '15 '16 '17 '18

Source: Applied Analysis/SalesTraq

Southern Nevada Market Update

Number of Bank-Owned Homes 668 = 5.1 Days

Source: Applied Analysis/SalesTraq

Southern Nevada Market Update

Effective Months of Availability

Multiple Listing Service

3.3 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 1 2 3 4 5 6 7 8 9 10

United States: 4.2 Months Southern Nevada: 3.3 Months

Source: MLS/SalesTraq

Southern Nevada Market Update

Effective Months of Availability

By Price Segment

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

2.5 Months 4.3 Months

Source: MLS/SalesTraq

Southern Nevada Market Update

Effective Months of Availability

Source: MLS/SalesTraq

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

Source: SalesTraq, GLVAR/MLS

26.0 '11 '12 '13 '14 '15 '16 '17 '18 10 20 30 40 50 60

December 2018: 26 Days December 2017: 19 Days

Southern Nevada Market Update

Southern Nevada

Market Update