For the first time in several years, Las Vegas area home builders are constructing large numbers of new houses across the valley. That’s mainly due to higher homes prices (we saw a 23% price increase last year) and an improving local economy. It’s also due to the fact that Southern Nevada’s population is still increasing at a steady clip, and many new residents prefer new construction homes over resales.
Interestingly, the mini building spree is focused around higher-end homes priced above $200,000 — well above the valley’s current median home price of $185,000. The new homes are selling very well as people are looking to upgrade from the “starter homes” which were built in huge numbers in the early 2000’s. According to UNLV economist Stephen Brown, home builders who focus on higher-end construction projects are “not really competing against a big inventory of existing homes” because most of the current inventory consists of smaller entry-level homes.
According to the Greater Las Vegas Association, the areas with the biggest growth in buyer demand are Green Valley (Henderson) and Summerlin, on the western edge of the valley.
As long as the local recovery continues, many experts expect Vegas home builders to start and re-start even more construction projects around town. New buyers, “upgraders,” and people looking for second homes should continue to keep demand strong for newly built homes.
The good news for people wanting to buy a Las Vegas home is that they now have more options than ever!
Learn more here: Real estate rebound prompts home construction
Vegas bulldozer photo by Mel Stoutsenberger