In a September 21 article in the Las Vegas Review-Journal, housing analyst Ken Perlman, of Sullivan Group, discusses how builders are moving away from master-planned communities dominated by single-family homes to more condo, townhome, and "wrap" projects. A "wrap" consists of housing units built around an above-ground parking facility.
According to Perlman, "developers still reap the benefits of higher density where land values are justified, yet they can build and sell these units at $250 a square foot instead of $350 a square foot." Higher density units are a builder response to rising construction costs and land costs.
Despite a 37% decrease in new home sales, and record inventory levels in the resale market, Sullivan Group president Tim Sullivan is still bullish on Las Vegas, and thinks the three year outlook is great.
"You've got restricted land, people still want to be here, and it's Vegas. You might get jaded by what the outside world thinks of Vegas, but Vegas is a magnet.
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