Fact Pack!

By Hightower Las Vegas and RCG Economics on June 17, 2024

Initial applications for U.S. unemployment benefits jumped to the highest level in nine month for the week ending June 8, driven in part by a large uptick in California during a period when the end of the school year can cause large fluctuations in claims. 

Initial claims increased by 13,000 to 242,000, according to Labor Department data.  

Mortgage Rates 

The average rate for a 30-year, fixed loan was 6.95 percent last week, down from 6.99 percent the prior week, per Freddie Mac. Housing inflation remains high, continuing a period of substantial fiscal pressure on both renters and buyers. 

PPI 

The producer price index (PPI)—a measure of what suppliers and wholesalers charge customers—dropped 0.2 percent month-over-month in May after increasing 0.5 percent in April and falling 0.1 percent in March, per the Bureau of Labor Statistics. 

Producer prices were up 2.2 percent year-over-year in May, but the decline over April was unexpected: Economists had predicted a 0.1 percent increase. 

Wages 

During periods of high inflation, prices increase faster than wages — from April 2021 to April 2023, average real hourly earnings in the U.S. declined every month for 25 consecutive months on a year-over-year basis.  

In May 2023, real wages began to rise as nominal wage growth outpaced inflation once again (as is usually the case). 

All in all, nominal wages have increased 22.7 percent since the beginning of 2020, and consumer prices have risen by 21.0 percent on aggregate. This means real wage growth was just 1.5 percent over the past four and half years, equivalent to an annual (real) pay increase of 0.3 percent. Statista graph: 

As of May 2024 

Nevada’s Most Desirable Jobs 

Flight Attendant is in the top spot as the most sought-after job in Nevada, with 3,872 average monthly Google searches between April 2023 and March 2024: 

(Method: Class Central analyzed the average number of monthly Google searches based on data from Google Keyword Planner for more than 100 different job roles, including terms such as ‘how to become a [job role]’ and ‘[job role] salary’.) 

Aggregate RE Values Ranked 

Which metro areas have the highest total value of homes? Visual Capitalist graphed the latest Redfin data (2023), which included single-family homes, townhouses, condos, and two-to-four-unit multifamily properties: 

As of December 2023 

The U.S. housing market – estimated at 90 million households – gained $2.4 trillion in value over the last year, bringing its total value to $47.5 trillion: 

As of December 2023 

Per Redfin, the average U.S. home was valued at $495,183 as of December 2023, up from $474,740 a year earlier. 

Averages can be deceiving, though: The average home value in the U.S. surpassed $500,000 in both the summer of 2023 and the summer of 2022, so homeowners who bought during those times may have lost value. 

Redfin’s data also shows that home values in urban areas aren’t holding up as well as those in the suburbs and rural areas. 

• Urban area value rose 3.6% year over year to $10.1 trillion in December 2023 
• Suburban value rose 5.6% to $29.2 trillion
•  Rural value increased 6.3% to $7.4 trillion 

Nevada Metro Home Prices 

Redfin data as of December 2023 on home prices in Nevada metro areas: 

Homeowner Ratios 

Agent Advice graphed homeownership rate changes by state — Nevada ranked 6^th among those that saw gains — between 2014 and 2023: 

Comfort 

How much income do single adults need to live comfortably and save or invest 20 percent in each U.S. state?  

According to calculations by SmartAsset based on the average cost of necessities and average discretionary spending (sourced from the MIT Living Wage Calculator as of Feb. 14, 2024): 

• Massachusetts is the most expensive state in which to live comfortably and save for retirement. A single adult needs to earn at least $116,022 annually or $55.78 per hour.  

• West Virginia is the least expensive for a single adult, who needs to earn an estimated $37.88 per hour, or $78,790 annually.  

Ten most expensive states, ranked: 

Infomap of all states: 

As of 2/14/24 

Nevada ranks 31^st among states. Of the 11 Mountain West states, Nevada ranks 7^th: 

1. California ($114,000) 

2. Washington ($106,000) 

3. Colorado ($103,000) 

4. Oregon ($101,000) 

5. Arizona ($97,000) 

6. Utah ($94,000) 

7. Nevada ($93,000) 

8. Idaho ($89,000) 

9. Wyoming ($88,000) 

10. Montana ($85,000) 

11. New Mexico ($84,000) 

Highest Rents 

The top 10 U.S. cities with the highest rental costs as of May 2024, according to the Zumper National Rent Index: 

As of May 2024 

Most Profitable Products for Amazon Sellers 

A Jungle Scout analysis revealed which products sold on Amazon are rendering the greatest profits: 

As of May 2023 

G-20 Rising 

The so-called G-7 nations account for 44 percent of the world economy, but that is not going to last: 

World Bank projections as of May 2023 

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On the Horizon 

This week’s number to watch will be retail sales on Tuesday. There is concern that the American consumer is beginning to pull back spending in the face of higher interest rates, and this report will provide insight into consumption patterns. 

MarketWatch calendar for the week: