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What housing supply crisis?

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Services for Real Estate Pros

It was argued in a recent newspaper article that land is in short supply in Las Vegas for residential development. With current construction pace it will last only another six years. A rather short time. Because of that, BLM ought to auction off more of it, which call it resists. The alleged shortage appears to be a public relations move by the home building community, goes the counter argument. There is plenty of dirt left here for housing development.   

After all, Summerlin master-planned community presently has about 100,000 residents and when completed sometime around 2025, it's expected to double that number. Inspirada in Henderson is just getting started on 2,000 acres and when finished will provide housing for about 25,000 people. There are many other projects to support the counter argument. And what about the well over 20,000 MLS listings currently looking for qualified buyers? Plenty of empty houses. Moreover, as Geoff Schumacher points out in his commentary, the valley is dotted with hundreds of vacant parcels of all sizes. So, it looks like there is land beyond the six years. Timely  discussion.

Let's take the story a bit further. Whether there is enough land or not, it has become very expensive over the years. With that house prices have been pushed up quite a bit and now the scenario turns to a large extent into an affordability issue. Which is one of the reasons for the current slump. That's why some developers are taking their projects to Coyote Springs 60 miles north of town and to Northern Arizona that should experience brisk construction activity once the new bypass bridge over Colorado River is finished. If we run out of land here in the valley, there's always the next valley.

 

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Mary Pope-Handy
Christie's International Real Estate Sereno - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley
I'm not worried about the land - there's plenty of it. But what will Nevada and California do about the water? That is the thing no one is speaking about. There just will not be enough!
Mar 27, 2007 05:39 PM
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
I also believe that is the problem.. we have only so many resources available in CA, NV and AZ.. we all need to think about how they should be used. I know many people who live in Vegas are very concerned about the continuing drought.. look how low Lake Mead has is compared to where it was even 5 years ago.
Mar 27, 2007 07:17 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Mary has a point, water is a more important issue.  Well here in NY we have lots of open space and I do hope a good portion of it stays that way.
Mar 27, 2007 11:33 PM
Esko Kiuru
Bethesda, MD
Water is a large issue. Quite a few measures have been implemented here in the last several years to help conserve and the results are okay. Yet, with the growth we are expecting, more needs to be done. Piping it from the northern counties seems to solve part of the shortage, provided that it'll be acceptable to those counties. Right now they aren't all that happy about the idea. Colorado River is the key. Snowmelt in the Rockies has been below norm for years and that's why the drought. How you get more snow on the Rockies? I don't know. Global warming behind the drought? Thanks for commenting.
Mar 28, 2007 11:25 AM