CHART OF THE DAY: EXPLAINING THE LOCALS LV DOLDRUMS

10/02/12 05:14PM EDT

Housing is improving but still not good enough

  • We’ve shown that housing prices have historically been the most statistically significant macro variable in explaining gaming revenue growth
  • While better, home prices were still down YoY in Q2.  The good news is that price change might be on the positive side in Q3.
  • The mortgage delinquency rate continues to slope downward which is a decent economic barometer.  However, that could also mean that more people are paying their mortgage or have moved out and are now paying rent.  Either way, it likely means less monthly discretionary spending which could be impacting gaming spend.  This phenomenon could continue to suppress locals gaming revenue.

CHART OF THE DAY: EXPLAINING THE LOCALS LV DOLDRUMS - nv

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.