Las Vegas research analyst Brian Gordon says it’s possible for Nevada to cut through ongoing economic volatility and embrace more optimism and opportunities available in the market.
The Economic Development Authority of Western Nevada held its annual State of the Economy address Feb. 5 at the Peppermill Resort Spa Casino in Reno. Nearly 1,600 attended the event, its largest turnout.
Gordon of Applied Analysis, a Las Vegas firm specializing in economic policy and assessments, described the disconnect between Nevada consumer sentiment and market indicators.
A family of four needs an income of $238,500 to live comfortably but the median household income is $92,000. Grocery costs, shifting demographics and job instability are hindering confidence.
The housing market especially is problematic for first-time and experienced homebuyers.
There’s little mobility to lock into current mortgage rates as they’re being driven up, Gordon said. The median closing price on new homes in 2025 was about $593,000. About 60% of mortgages have rates between 3% and 6%, and it’s likely more consumers will move between housing alternatives, Gordon said.
Making way for any new housing developments, on the other hand, is becoming less viable. Nevada seems ideal and spacious as builders come to the state only to discover most vacant land is federally-owned or its terrain is unsuitable for development, Gordon said.
“There is not a lot of opportunity for future development out into the community, so this is what’s causing elevated land pricing,” he said. “We already know costs are high from a material standpoint. We know costs are high from a labor standpoint.”
The 2026 business construction forecast shows data centers are top of the development list, with 3,900 new centers happening in the United States. Reno and Las Vegas have a projected 953% increase in their capacity to invest in or expand with hubs. Northern Nevada alone has an estimated $26 billion in costs for planned projects or those under construction now. Gordon surmised many might not come to fruition, but these and other community projects will pay off in the long run.
The outlook on employment to some might indicate “the world is coming to an end,” Gordon said.
“‘Nobody can find a job,’ ‘the game’s over,’ ‘forget about it, AI’s just replacing my job,’ ” he shared about common misconceptions.
But employers and businesses actually are adapting and restructuring. They’re looking to hire boomers, who are driving the U.S. labor force from a median age of 40.5 years of age to more than 42 years at the end of 2025. The state isn’t short on people but the right skill sets to fill industry shortages such as utilities, information technology, consumer goods and services and communications.
Partnerships with local education institutions or industry drivers including Tesla, Truckee Meadows Community College or Western Nevada College can provide fast entry into industry, Gordon said.
This past year also is impacting Americans’ views of a healthy economy. Yet, perception does not align with reality, Gordon argued.
“We’re still better off than where we were,” he said. “We are on a much more stable path than where we were before.”
EDAWN President and Chief Executive Officer Taylor Adams shared in his presentation EDAWN secured 275 qualified leads last year, provided 176 site visits with about 14 per month and announced 11 company relocations and four expansions. Among the total 15 companies, this equates to about $534 million in investments and approximately 593 jobs at an average salary of $76,800 added to Northern Nevada, Adams said.
“We continue to be the little engine that could,” he said. “This community’s refusal to sit on our hands and wait allows us to deliver growth at whatever growth the market provides.”
Adams said EDAWN’s new Business Builders program focusing on retention and expansion efforts resulted in 39 visits and supported such strategies across the region.
EDAWN also supported 348 new startups through connections, mentorships and advisement. Within these strategies, 41 of these new businesses added 107 new jobs, plus 20 startups that were funded raised approximately $555 million in capital, he said.
Reno Startup Week from Sept. 29 to Oct. 3 experienced a general attendance boost of 40% and is becoming more diverse, Adams said, with 47% of women participating and 13% identifying as Hispanic or Latino.
“It’s no longer just an event,” he said. “It’s part of the infrastructure that keeps Northern Nevada’s entrepreneurial pipeline active, resilient and growing. At this point, our role is to turn retention into action and actions into outcomes.”
Adams announced EDAWN will be experiencing a rebrand this year with the assistance of the Abbi Agency and encouraged participants to watch for its modernization of its marketing strategy.
“America was not built by spectators, but by startups, people with ideas, grit and the courage to act,” he said. “American entrepreneursm is our moment to say the future belongs not just to those with capital connections but to everyone with a dream and a plan.”
Mike Kazmierski, executive director of Reno nonprofit Strengthen our Community and former chief executive officer of EDAWN, said after the presentation it was exciting to see the “State of Economy” turnout grow from 200 about 15 years ago to this year’s 1,600.
“What it shows is communities evolve,” Kazmierski said. “The community cares. … I think Brian’s biggest point, and he hit it a few times, was don’t look at your social media. Don’t watch what you see on TV about the sky is falling and the tariffs are going to bankrupt everybody and all these job layoffs are happening.
“Look at what’s happening in our community,” he said. “We’re continuing to grow and great things, and you know, it’s really an exciting time for us.”