Tesla: Saving the World and Northern Nevada’s Housing Market
Northern Nevada is on the fast track to becoming the next Silicon Valley and Tesla is paving the way. No state income tax and a pleasant climate makes Reno an appealing area for tech hubs and young entrepreneurs alike. With cost of living still very affordable, young professionals and families can get a lot more bang for their buck. Luxury home prices are nearly six times lower in the Silver State compared to its golden neighbor. A huge restoration is on the rise in Reno and Elon Musk’s environmentally conscious business model might be the next best thing for the environment and the housing market.
Rebounding from the 2006 real estate crash, Northern Nevada’s housing market has been on a steady rise over the last four years but the market is not yet harmonious. High-paid tech workers, self-employed people, and young entrepreneurs are fueling the housing market; leaving California where state income tax is 13 percent and moving to the Silver State. There is a small supply of homes and a large demand, that puts the ball in the seller’s court and median prices will increase as a result. There may be a silver lining though as builders are constructing more homes to satisfy the demand. We may see a balanced market soon with new development to support the growing demands. Tesla is projected to hire 6,200 people at their Gigafactory and support companies would create exponential growth in the area. Other new business growth forecasts 50,000 new jobs in the Reno area over the next five years and an influx of new residents would increase growth by 1.4 percent.
Low wages, affordable energy, easy highway access and agreeable climate make Northern Nevada a perfect place for the next tech industry. Nevada won the bidding war for Tesla by securing $1.3 billion in tax breaks over 20 years but Reno was already a no brainer. Close proximity to Tesla’s auto plant in Fremont, California and easy access to US Interstate 80, make Reno a diamond in the rough. Although the Gigafactory won’t be completed until 2020, Northern Nevada is already seeing an increase in migrant workers. The hopes of this factory are to accelerate the advent of sustainable energy by producing battery packs for cars and eventually homes. Tesla’s goal is to end the use of unsustainable and non-renewable fossil fuels. Musk’s ideas could solve global warming. Car and home battery packs in conjunction with solar panels would eliminate carbon emitting power plants, gasoline, and heating oil.
The gigafactory stands true to its name. Sitting on 3,000-acres, the industrial plant is 10-million-square-foot and seven stories tall. The Gigafactory will be the second largest industrial plant in America next to the Boeing Everett Factory, and Musk has hinted it could grow bigger which would bring exponential growth and opportunity to the region. The creation of new jobs means lots of new employees which means more home sales and prosperity for Northern Nevada’s economy.