• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • Meet the Decision Maker
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • About
    • About the Magazine
    • Contact the Staff
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Features / Building Nevada / Stable and Sustainable

Stable and SustainableNevada’s Residential Market

January 1, 2020 By Pat Evans Leave a Comment

Nevada’s residential housing should be stabilized and sustainable throughout 2020.

Despite a relative lack of inventory and as potential homebuyers continue to flock to northern and southern Nevada alike, multiple Nevada real estate executives said they believe the housing market will settle into a groove.

“For the first time in 13, 14 years, I can use the words stable and sustainable,” said Nat Hodgson, CEO of the Southern Nevada Homebuilders Association. “Prior to having this job, I worked for a major builder and it was an up and down roller coaster. When I took the helm in 2011, we were at rock bottom. [It’s great] to see where we’re at and to be able to say that, I like saying that.”

It’s not just the homebuilders saying the market is stable. Tom Blanchard, president of the Greater Las Vegas Association of Realtors, echoed an almost identical sentiment.

“We’ve gone from a high appreciation market to a more normalized market,” Blanchard said. “We could not sustain the high appreciation market we were in the past couple years. To me, all I see is a housing market in Vegas that has turned to stable and sustainable.”

Reno is in a similar situation, said Don Tatro, CEO of the Builders Association of Northern Nevada.

“No large spikes or dips,” Tatro said. “I anticipate [2020] to be similar to [2019] or slightly better because we have some projects that were approved.”

The stability could certainly be tested as the population is expected by many to continue to grow. Nevada is projected, along with Texas and Arizona, to continue to see an influx of homebuyers who have been priced out of California.

Realtors and builders in both the Las Vegas and Reno areas are ready to weather the increase.

Realtor.com predicts Las Vegas will experience a 9.5 percent drop in resale totals, the third-largest drop among 100 metro areas. Nationally, resales are expected to drop 1.8 percent.

A more stable year is welcome, Blanchard said, even if fewer resales will make residental brokers nervous.

“It’s a great pressure relief valve,” he said. “We’ve had three years of steady growth, people coming and it’s not like we’ve been able to increase the housing market of new homes. If you don’t sell, you don’t make money, but it’s healthy for us as a housing market to have taken a breather from what we’ve seen in the past, which was just unsustainable.”

That lack of housing options will pose an issue for most of the nation, according to the Realtor.com study.

“[This year] will prove to be the most challenging year for buyers, not because of what they can afford but rather what they can find,” said George Ratiu, senior economist at Realtor.com.

Continuing to Build

With a predicted influx in homebuyers and a slowing number of resales, building new homes will be required to keep the market flowing smoothly.

Nationwide single-family home starts are expected to rise by 6 percent. New builds in Las Vegas will be, yet again, stable, Hodgson said. While individual builders want more growth, Hodgson said the 11,000 new single-family homes is a nice pace. He put that in perspective as, in 1992, with a city population of approximately 700,000, new builds were upwards of 11,800. At the peak, new builds were upward of 20,000.

“It’s great. People want headlines, but its evened out,” Hodgson said.

New builds in Reno will crest 2,000 this year, consistent with each year back to 2015, Tatro said. At the building height, Reno was above 5,000 new builds.

Tatro said there has been a slight lag in supply, but builders are doing what they can to catch up and fill the void. He’s hopeful there might be a positive supply this coming year.

“It’s important to realize builders don’t create demand, they react and they can’t react overnight,” he said.

With a tight supply, Tatro said he’d like to see an increase but regulatory issues are keeping it low and pushing costs up. He said fees for new builds can be between $35,000 and $55,000.

“Our regulations continue to increase,” he said. “Every time a fee goes up, a chunk of people are priced out of the median price and we can control those costs, that’s something easily reduced.”

Hodgson said the southern Nevada new home starts are slowed by the cost, which are higher than at the height of the building boom, because land, labor and materials are higher.

“If it costs, $350,000, all in to build, they’re not selling a bunch [of homes] for $250,000,” he said.

Hodgson said he is nervous about available land, explaining the Federal Lands Bill which examines 400,000 acres, which could result in about 22,000 acres for residential.

“I’m here to look out for Nevadans,” he said. “We have a ton of land, but my biggest fear is the artificial lack of supply.” The Bureau of Land Management (BLM) sold more than $170 million worth of Las Vegas Valley land in August 2019, as investors purchased nearly 665 acres. The largest parcel was bought by Olympia Companies, which purchased 270 acres for $43.2 million. Company leadership has indicated the upper northwest valley land the company purchased would be a residential community.

The realtors want more homes added to the market, naturally. “We need to continue to to see a healthy number of new homes built,” Blanchard said.

Blanchard is hopeful that, as big construction projects like Allegiant Stadium and Resorts World are completed, it will help put construction workers back focused on residential projects.

“We have a labor shortage through our own great economy,” he said.

Hodgson expanded on the labor shortage, which could be amplified in the coming years as much as 25 percent of the workforce could age out in the next 5 to 10 years with no immediate replacements in the pipeline. “We need to focus on land and labor, our skilled workforce we need to figure out,” he said.

In northern Nevada, Tatro said the Builders Association is doing all it can to help shift the perception of trade careers as viable options.

Hodgson made specific mention of a new workforce development program in Las Vegas which recently graduated 10 transitional homeless young adults through a four-and-a-half week construction fundamentals course. Those 10 were then placed with subcontractors.

New Homebuyers

Millennials will be the largest segment of the mortgage market, projected to take out more than 50 percent of mortgages as the oldest members of the generation turn 39.

Hodgson said he believes the previous lack of millennial homebuyers has been blown out of proportion.

“That generation saw what happened to friends and families,” he said. “It’s taking them a little bit to get back feeling comfortable. The generation behind them, they don’t really remember, but they know it’s the American dream to own a house.”

Housing inventory nationwide is expected to remain constrained, particularly entry-level homes.

The homeownership rate among Americans peaked in 2004 at 69.2 percent but fell to 62.9 percent in 2016. The rate is currently 64.8 percent.

Conflicting Ideas

Las Vegas home prices are predicted to fall, according to Realtor.com. The listing website forecasts previously-owned home prices in southern Nevada will drop 1.1 percent. That’s in contrast to most of nation, as prices are expected to rise 0.8 percent nationwide.

A drop in home prices seem to go against all other information and basic economic principals as the same report predicts Nevada will see a surge in homebuyers, Blanchard said.

“We still have a draw, we still have a need and people want to buy. But, supply is limited, and the price is going down?” Blanchard said. “That goes against all the laws of the economics of supply and demand.”

Several markets in nearby states are among those expected to see prices jump the most. Boise, Idaho, which has been one of the fastest-growing cities in the country is expected to rise 8.1 percent and Phoenix is projected to bump up 3.8 percent.

According to the Greater Las Vegas Association of Realtors, the median price of previously-owned single-family homes in October 2019 was $307,000. In Reno, the median sale price is $370,600, while home values increased 5.1 percent in 2019. Those prices are expected to rise another 1.7 percent by next June.

Tatro said while median prices in the Reno area has increased significantly the past couple of years, it’s growing with wages. He doesn’t believe that is set to change anytime soon with the influx in technology-related jobs locating to the area.

Regardless if the numbers are growing or shrinking, Hodgson said the prices in Nevada are still a bargain when looking at prices in markets like California.

Safe Market

The thought of a recession can make many nervous and while most don’t expect one in 2020. Others expect a slowdown because of the presidential election. Nevada executives predict the housing market will remain smooth.

“All eyes should be on the election and economy,” Blanchard said. “But even if there is a recession, four out of the last five, housing appreciated even with the recessions going on. Even the R-word is not necessarily a bad word for housing.”

Tatro said this stabilized market in northern Nevada — and Nevada in general — should stay safe throughout 2020.

“The only indicators are that it will be a solid year,” Tatro said. “I don’t believe there is a bubble, or if there is and it were to burst, Nevada would be the epicenter as it was 12 years ago. The hope would be we’ve diversified and established solid work by elected officials to bring this stability. “

Filed Under: Building Nevada Tagged With: Builders Association of Northern Nevada, Don Tatro, Greater Las Vegas Association of Realtors, Las Vegas business, Las Vegas real estate, Nat Hodgson, Nevada business, Nevada real estate, Reno business, Reno real estate, Southern Nevada Homebuilder’s Association, Tom Blanchard

Paul Krakovitz: Intermountain Healthcare

Edward Vance: EV&A Architects

Scott Arkills: Silver State Schools Credit Union

Terry Shirey: Nevada State Bank

Online Advertorials

Online Advertorials

SNWA’s Infrastructure InvestmentsHelp Secure Access to Water Supply

Bank of NevadaFunding Will Provide Nevada Students With Financial Literacy Education

Infrastructure InvestmentsAssure Our Community’s Water Future

Roseman’s College of MedicineAddressing the Physician Workforce Shortage

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Get important updates from Nevada Business Magazine, directly to your inbox.
Subscribe

Wild at HeartEconomic Development in Rural Nevada

Industry FocusBankers

Residential NevadaMarket Shifts

Southern Nevada CCIMPassing the Torch to the Next Generation of Professionals

Nevada News & PR Wire

  • CAMCO Nevada Promotes Bree McRae to Regional Director of its Portfolio Division

  • CSN Launches Six New Programs

  • Las Vegas Area Home Prices Dip for Second Straight Month

  • Faith Lutheran Begins 2022-23 Academic Year with New Principal

  • Grand Sierra Resort and Casino Honors a Selfless Medical Assistant as the Most Recent “Grand Hero”

  • Downtown Reno Partnership Announces New Marketing Manager and Office Manager

  • Kamer Zucker Abbott Elevates Kaitlin Paxton to Partner

  • KPS3 Hires Chelsea Bosco as Designer

  • Lipson Neilson’s Joseph Garin and Megan Thongkham Named 2022 Mountain States Super Lawyers

  • Open Enrollment for Upcoming Miss Silver State Pageant

  • Move 4 Less Recognizes Dream Home Art Contest Youth Winners with Party and Prizes

  • LumiZen Wellness Debuts Premier CBD Products for People and Pets Alike

  • Celebrate International Coworking Day at The Coop and Test Drive the Coworking Experience for Free!

  • aha! Reports Exceptional Operating Performance for July 2022

  • ioneer Signs Binding Lithium Offtake Agreement with Prime Planet Energy & Solutions

  • The Problem Solver Show to Interview Man Who Discovered Third Body in Lake Mead

  • Aug. 18 NAIOP Southern Nevada Breakfast Presents “The Future of the Las Vegas Strip Is Here”

  • Pilots Revealed for 2022 STIHL National Championship Air Races

  • Preparing for End of Life Workshop

  • Las Vegas Attorney Offers Free Workshop on Protecting Children’s Inheritance and More

  • CVMC Welcomes Lisa McKinney, APRN to Ironwood Primary Care

  • Realtor Nate Strager Releases Weekly Market Update as Part of His Information Campaign

  • Entertainment and Supper Club Summer Schedule at the Stirling Club Continues to Sizzle

  • Community Leader Don Snyder Elected Chairman of the United Way of Southern Nevada Board

  • Lexicon Bank Sponsors Scleroderma Sprint Event, Fueling Efforts For A Cure

  • Optum Care Cancer Care Adds a New Physician

  • Southwest Medical Adds Three New Healthcare Providers

  • International Celebrity Vocal Coach Romeo Johnson Offers Vocal Lessons To Clark County Residents

  • Team From The Problem Solver Show to Sponsor Free Ice Cream and T Shirt Give Away For Kids

  • Las Vegas Orthopedic Surgeon Offers New Treatment For Limb Lengthening

  • TSK Celebrates O’Brien Middle School Redesign Ribbon Cutting in Partnership With Cumming Group

  • Godspeed Capital-backed Huckabee Architects Invests in TSK Architects

  • Dunkin’ Presents $4,000 to Cure 4 The Kids Foundation From Funds Raised on Iced Coffee Day

  • Nevada Bankers Association Announces 2022-23 Board of Directors

  • Annie Wagner of KPS3 Earns Certificate in Principles of Public Relations

  • NAR Tabs Nevada REALTORS®­ Leaders to Serve in National Leadership Roles

  • Kamer Zucker Abbott Attorneys Selected to the 2022 Mountain States Super Lawyers® List

  • Kamer Zucker Abbott’s Next Webinar: Balancing Employee vs. Employer Rights in Divisive Times

  • Henderson Chamber of Commerce Announces 2022 Board of Directors Additions

  • De Castroverde Law Group and Findlay Subaru of Las Vegas Award $10,000 College Scholarship to Allison Hill

  • Karma and Luck Supports Ukraine Through Donation to Doctors Without Borders

  • Support Local Students and Teachers During the Greater Schools Supplies Drive

  • KPS3 Welcomes Lauren Davis to Team

  • Las Vegas-Based Neteffect Named a Top Firm by Clutch

  • Bank of Nevada Welcomes Michael Pizzi as Managing Director of Commercial Banking

  • Following Nevada Osha’s Adoption of Heat Guidelines, There Are Free Resources for Employers to Protect Employees From Heat-Related Illness and Injuries

  • aha! Launches 50% Off End of Summer Super Sale – Book Now!

  • Evolution of Healthcare with RESET IV

  • Mark Wiley Group Announces Buck Hujabre as New President of Commercial Division

  • Jim Seebock Announces Run for Henderson City Council Seat Ward One

  • WestCor Announces New Director of Marketing and Business Development

  • Home At Last™ by Nevada Rural Housing Launches New 4% Advantage Down Payment Assistance Option

  • Tilt-up construction is complete at Mountain West Industrial Park

  • Grow with Google Provides Nevada Small Businesses With Tools to Reach Customers in Changing Economy

  • Facebook Launches New “Feeds” Tab Connecting Users More Than Ever

  • Trosper Public Relations Announces New Hire in Northern Nevada

  • Emerald Island and Rainbow Club Casinos Partner With Local Woman-Owned Spirits Company to Offer ‘Super Premium Well’ Vodka

  • Greater Nevada Mortgage Provides Down Payment Assistance for Eligible First-Time Homebuyers

  • Education Non-Profit CORE Names Jordan Ashley Berkowitz as Development Director

  • ioneer Signs Binding Lithium Offtake Agreement with Ford

  • Two attorneys from De Castroverde Law Group honored as 2022 Mountain States Super Lawyers Rising Stars®

  • Grow With Google Provides Nevada Small Businesses With Tools to Reach Customers in Changing Economy

  • The NCJFCJ Recognizes the Honorable Linda Marie Bell As the 2022 Impact of the Year Recipient at Annual Justice Innovation Awards

  • Broadbent & Associates, Inc. Donates to Local Youth Hockey Team

  • Goodwill® of Southern Nevada Spreads Mid-Year Cheer with Second Annual ‘Christmas in July’ Event

  • CALVPresenting Sept. 21 Educational Symposium for Real Estate Pros Featuring Cyber Security Expert Frank Abagnale of “Catch Me if You Can” Fame

  • Goodwill® of Southern Nevada Promotes from Within

  • STIHL National Championship Air Races Participating in “A Community Thrives” Fundraising Initiative

  • Northcap Commercial Arranges Sale of Mark & Daisy Apartments for $3,800,000

  • MDX Labs Expands Operations to Include Saturdays, in Response to Clark County’s Elevated Level of COVID-19

  • Downtown Reno Partnership Announces Key Performance Indicators for Fiscal Year 2021-2022

  • Meruelo Family Scholarship Awards $12,500 to Children of Grand Sierra Resort Team Members

  • aha! Inaugurates Nonstop Flights From Reno-Tahoe to Santa Rosa

  • Helix Electric Raises Over $24,000 to Benefit Reno Charities

  • 20 Recent CCSD Grads Offered Apprenticeships at Tesla

  • REMSA Health announces promotion of four leaders within the organization

  • TEDx Speaker at NCET Biz Bite Luncheon in Reno

  • The National Council of Juvenile and Family Court Judges 85th Annual Conference Brings Participants to Northern Nevada From Across the Nation

  • Northcap Commercial Arranges Sale of 239 W. New York Ave Apartments for $1,015,000

  • LVR Announces Newly Elected Officers and Board Members for 2023

  • JA Worldwide Nominated for 2022 Nobel Peace Prize — Junior Achievement of Southern Nevada Celebrates Prestigious Honor —

  • aha! announces additional flying from Ontario, California to Reno-Tahoe for “Burners”

  • Optum Care Anesthesia adds two new health care providers

  • American Bar Association Appoints Lipson Neilson Shareholder Sandra D. Glazier as a Member of the Commission on Law and Aging

  • CALV President Angelina Scarcelli earns NAR leadership appointment

  • Pacific West Injury Law’s Attorney Visits Children At Sunrise Hospital As Mascot Blue Bear

  • SOUL FULL Sundays At The INDUSTRIAL

  • Serial Horse Killer Reward Goes To $10,000

  • Nevada Women’s Fund Receives $100,000 Award from SilverSummit HealthPlan

  • SILVERSUMMIT HEALTHPLAN AND COMPREHENSIVE CANCER CENTERS EXPAND PARTNERSHIP TO IMPROVE MEMBER ACCESS TO CARE

  • Yolanda Carapia of De Castroverde Law Group is awarded Nevada Justice Association Rising Star Award

  • Project 150 benefits from Game Show Boot Camp

  • Sip For Survivors – New SafeNest Coffee

  • The Downtown Vegas Alliance Elects 2022-2023 Officers and Board Members

  • July 21 NAIOP Southern Nevada breakfast presents “The Changing LANDscape: A Discussion on Land in Southern Nevada”

  • Real Estate Expert Nate Strager provides “Hope for Homeownership” With His New Information Campaign Regarding Housing Assistance Programs

  • WestCor CEO Recognized by Construction Financial Management Association

  • Nonprofit Hosting Education Drive to Support Youth Experiencing Homelessness Reach Their Educational Goals

  • FEA Consulting Engineers Welcomes New Team Members

  • Full Tilt Logistics Announces Massive Expansion of Nationwide Shipping, Warehousing and Distribution Business



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

  • Kamer Zucker Abbott Webinar on Crossing the Line? Balancing Employee vs. Employer Rights in Divisive Times
    August 18, 2022 10:00 am

    More details...
  • Special Olympics Nevada Bowl for the Gold
    August 20, 2022 11:00 am

    Location: 1301 W Sunset Rd, Henderson, NV 89014, USA

    More details...
View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2022, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress

    *Your Name

    *Your Email

    Phone Number

    Company

    *Subject

    *Your Message

      *Your Name

      *Your Email

      Phone Number

      Company

      *Subject

      *Your Message

        *Your Name

        *Your Email

        Phone Number

        Company

        *Subject

        *Your Message

          *Your Name

          *Your Email

          Phone Number

          Company

          *Subject

          *Your Message

            *Your Name

            *Your Email

            Phone Number

            Company

            *Subject

            *Your Message

              *Your Name

              *Your Email

              Phone Number

              Company

              *Subject

              *Your Message

                *Your Name

                *Your Email

                Phone Number

                Company

                *Subject

                *Your Message

                  *Your Name

                  *Your Email

                  Phone Number

                  Company

                  *Subject

                  *Your Message

                    *Your Name

                    *Your Email

                    Phone Number

                    Company

                    *Subject

                    *Your Message