March 2005 - Southern Nevada, Industry Face Watershed
By Mandi Harding

Water issues were atop the agenda presented by Jeremy Aguero, principal analyst of Applied Analysis, at the February Framing Contractors Association quarterly luncheon. Aguero, speaking about southern Nevadaâs economy, highlighted growth management issues, water availability and the impacts of expansion within the construction sector.
Water took the place of honor, as Aguero noted that despite our recent rains, the drought is still a problem and the region is far from being out of the woods. And with the Nevada State Legislature currently in session, water is going to be addressed at the state level, and residents need to remain abreast of the discussions in Carson City.
ãThe reality with water is that we need to look at in-state resources, out-of-state resources and come to terms with the reality that we are going to be paying more for water in the future,ä said Aguero. ãOur conservation efforts are working. If you look at consumptive use over the last year we have added 120,000 new residents, yet we used less water last year than ever before.ä
Aguero mentioned such achievement in the area of conservation will undoubtedly work in our favor when out prospecting for new water resources.
Aguero shifted into an economic development update citing that between 1993 and 2003 southern Nevada had developed by approximately 6,000 acres a year, and of that, 56 percent was due to residential construction. Southern Nevada growth estimates for the next five years project 700,000 new residents and 320,000 new jobs.
ãHowever, we have to alleviate the land availability problem to reach that 700,000 target,äAguero noted.
Aguero encouraged attendees to look at southern Nevadaâs employment growth.
ãWhen you look at employment growth from 1981 to 2004 ö and remember this is a year over year growth rate ö 20 percent of employment growth has been in construction. Why again are people moving to our valley? To find jobs. This trend hasnât changed much,ä said Aguero.
Aguero provided an update on the happenings with the Clark County Commissionâs Community Growth Task Force. He said the panel is preparing its report, due in April, containing suggestions for improving urban design, national resource conservation, facility adequacy, timing and planning, coordination and integration of processes, plans and functional assignments.
Aguero touched on the urban sprawl or density debate.
ãUsually people donât like either, but they have to more or less choose one or the other. In which case, most will choose density as long as itâs Înot in my backyard.âä
From 1982 to 1997 Las Vegas was by far the number one city in increased density, increasing by nearly 51 percent. Second place Fort Pierre, Fla. managed only a only 29.9 percent increase.
Home appreciation was a statewide issue in 2004, not just in southern Nevada.
ãStatewide homes appreciated 35 percent in 2004, this compared to a national average of 13 percent,ä Aguero said. ãWith Nevada having three times the national average of hotel, gaming and recreation employees and two times the national average of construction industry employees the lack of affordable housing is a problem and itâs not going to go away. Also when you consider that one out of every three homes sold in November 2004 were investor purchases or bought by someone who doesnât live here.ä
Aguero wrapped up his presentation and fielded questions from the audience on a variety of topics including funding education, transportation and congestion, ozone attainment and federal dollars from government contracts.


Aguero specializes in economic analysis, operational model development and impact analysis. Prior to forming Applied Analysis, he served as an analyst for Coopers & Lybrandâs financial advisory services group. He graduated with honors from the University of Nevada, Las Vegas. He also earned a juris doctorate from the Sam Boyd School of Law.
Aguero currently serves on the Board of Advisors for the Nevada Council on Problem Gambling and has served on the Board of Directors for the local chapter of Hispanics in Politics. He also serves as a member of the Clark County Organization & Resource Review Committee and the Nevada Taxpayers Association.