Construction market trends
Construction labor
Like many US cities, Las Vegas faces a significant challenge in addressing the availability of skilled labor within its construction sector. The region's tight labor market has led to difficulties for contractors in sourcing skilled workers, contributing to project delays and rising labor costs. A key factor driving this issue is an aging workforce, with many skilled professionals nearing retirement and insufficient younger workers to replace them. Economic uncertainties have compounded the problem, raising job stability concerns among prospective entrants to the industry.
Figure 6:
Source: Bureau of Labor Statistics, Apr 2025
Despite these challenges, construction wages in the Las Vegas-Henderson-Paradise metropolitan area are beginning to stabilize. Average hourly earnings increased by just 0.6 percent year-on-year in Q4 2024. Average hourly wages for construction employees have levelled off after peaking in 2019 and have lagged the broader private sector, helping to ease pressure on construction cost escalation.
Slower wage growth in Las Vegas is a key challenge for the sector and has contributed to ongoing labor shortages, as many workers opt for less physically demanding roles in hospitality, where wages have become increasingly competitive. This trend has limited the supply of skilled labor, adding pressure to project costs and timelines.
Despite these constraints, construction employment in Las Vegas–Paradise MSA grew by 6,000 workers (7.1 percent) in December 2024, surpassing the national average. The construction-to-total-employment ratio in the region stands at 7.8 percent, well above the national average of 5.2 percent. While labor shortages remain a concern, recent hiring gains have helped stabilise wages, though workforce constraints continue to challenge the industry.
The long-term outlook has become more uncertain following the re-election of President Trump and the policies he plans to introduce in the coming years.
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Construction materials
Figure 8:
Building material cost movement, Las Vegas
Material
Last 12 months
Next 12 months
Concrete
Lumber
Structural steel
Rebar
Electrical cable and conduit
Plumbing materials
Glazing
Floor coverings
Source: Turner & Townsend, Jan 2025
Construction material costs have dropped as demand has cooled. Steel and lumber prices have fallen from their 2022 highs. The supply chain improved in 2024, except for electrical items like copper cables and transformers.
In 2025, the new presidential administration may raise tariffs on imports, which could increase material costs. While supply chain issues have eased, lead times and costs are still unpredictable. Key materials like copper have seen price increases, and electrical components face shortages. Steel and concrete costs vary, and lumber prices fluctuate due to supply and demand imbalances.
New tariffs are a concern, especially with the current administration's trade policies adding uncertainty. Tariffs could raise prices for many construction materials, including domestic ones competing with imports. Contractors might see short-term price hikes if buyers rush to import materials before tariffs take effect.
Despite the uncertainty, 2024 saw stable input prices, benefiting contractors. It's unclear how material costs will change in 2025, but recent months show improvement with shorter lead times and slower price increases.
Lead times
Extended permitting and material lead times continue to impact project schedules in Las Vegas. Permitting timelines vary by jurisdiction, while supply chain constraints, particularly for electrical and mechanical equipment, contribute to delays. External factors, including weather conditions and regional supply chain risks, add further uncertainty.
Permitting lead times
Figure 9:
Permitting lead times
Permitting lead times in Las Vegas and surrounding areas typically range from 6 to 12 weeks. While Las Vegas and Henderson offer the potential for faster approvals, sometimes as short as 2 to 3 weeks, the likelihood of revisions or additional documentation requirements can extend these timelines.
Efforts have been made to streamline the permitting process and establish clear expectation for applicants. For example:
- Clark County has set first review timeframe goals for various projects, such as 21 days for commercial projects with a valuation of US$250,000 or greater, 14 days for commercial minor projects and 10 days for revisions.
- North Las Vegas offers an accelerated review process for civil improvement plans, guaranteeing a two-week turnaround for the first two reviews if specific criteria are met.
Both Clark County and North Las Vegas also offer self-certification permit programs, allowing architects to review plans themselves and expedite the permitting process.
Material and equipment lead times
A key challenge experienced by contractors in Las Vegas is extended lead-in times for key building materials and equipment. Without careful planning and early coordination, projects are at risk of lengthy delays, which can add significantly to project costs. The below table includes the average lead-in time for key building materials and equipment in Las Vegas and has been sourced through surveying several general contractors in the market.
Figure 10:
Material lead times
Large equipment and mechanical items are currently experiencing some of the longest delays with procuring. Large mechanical equipment (exceeding 10 tons) is experiencing delays of more than 40 weeks to arrive. The timing for smaller equipment (under 10 tons) is less but is still lengthy at 20–22 weeks.
Electrical equipment is also experiencing considerable lead-in times. For large electrical switchgear, lead in times can be up to 52 weeks, while distribution boards are seeing delays of up to 32 weeks. Without careful planning and early co-ordination by contractors, these lengthy lead-in times can have considerable impacts on project schedules.
As is generally the case, specialty items such as internal and external finishes, acoustic systems, medical equipment etc. also have long lead-in times. Any specialized or custom inputs are likely to experience longer lead times, given they are made to order. On average, lead-in times for these inputs can be anywhere between four and seven months, with some materials such as custom millwork potentially exceeding this timeframe.
These extended lead-in times across many key inputs into projects emphasizes the need for early procurement and efficient scheduling to minimize disruptions.
The fires in Los Angeles haven't caused major logistics disruptions, and container ports are so far unaffected. However, rebuilding efforts could increase demand for construction materials and labor, potentially raising construction costs and lead times in nearby Las Vegas.
Supply chain capacity
Figure 11:
Supply chain capacity
The Supply chain capacity chart provides a high-level view of lead times for various construction categories in the Las Vegas market. Service and fit-out are currently facing more pressure, while façade and structures are under relatively less strain.
- Fit-out: Partitioning is experiencing slowdowns, with lead times extending beyond normal levels, while painting is facing minimal delays. Components such as carpet, tiling, and joinery are within normal capacity. While some areas within the fit-out sector are under some pressure, overall, the sector is operating at normal supply levels, with only a few specific trades encountering delays.
- Services: Mechanical and electrical trades are experiencing critical capacity constraints, with extended lead times and supply challenges. This is keeping services at almost critical capacity, though fire services and hydraulics are at normal levels, providing some relief.
- Façade: Glazing and frameless glazing are at normal capacity levels. However, balustrades are approaching higher demand thresholds, which could potentially lead to longer lead times if market demand rises sharply.
- Structures: Materials such as formwork, structure steel and precast concrete remain at normal capacity, while concrete and reinforcement materials are currently under normal thresholds. Overall pressure is less intense compared to services and fit-out.
