Posted on: Friday, July 11, 2003
Las Vegas No.1 in new home sales
By John Handley
Chicago Tribune
LAS VEGAS — "People either love Las Vegas or they hate it," says former Chicagoan Stephanie Bryson. "Personally, I think it's a great place to live."
Tired of shoveling snow, she headed west a year ago and bought a condo at Summerlin, a massive master-planned development in the Las Vegas Valley.
"I wanted to go where it was sunny, where I didn't have to put boots on in winter," said Bryson. "Now, if I want snow, it's an hour's drive away on Mount Charleston. But I'm content just to look at it."
Bryson, a registered nurse, has joined the multitude of home buyers who have made Las Vegas the fastest-growing metropolitan area in the nation, propelling its population to 1.6 million from about 500,000 in 1985. Projections call for 2 million by 2010.
The housing boom was sparked in large part by a wave of casino/hotel construction that started with the Mirage in the late 1980s. It was followed by Excalibur, Treasure Island, MGM Grand, Luxor, New York New York, Monte Carlo, Bellagio, Mandalay Bay, Paris, Venetian and others.
Last year, new home sales at the 280 active subdivisions in the Las Vegas area topped 22,500, twice the number sold in 1992.
Just as the big-name shows on the Strip are no longer super-bargains, so too the town's relatively low-cost housing has become more expensive.
The median price of a new home topped $200,000 for the first time in April as a result of strong demand and low inventory, according to SalesTraq. The median price of a resale home increased to $163,000.
"Despite these higher prices, homes still look inexpensive to buyers coming from California, New York and Illinois," said Lee Venable, Las Vegas division president of Kimball Hill Homes, headquartered in a Chicago suburb.
He noted that property taxes are comparatively low, averaging about $1,000 a year on a $200,000 home. And, of course, Nevada levies no income tax.
Cost is less of a concern in the upper-bracket housing market.
Singer Celine Dion bought a $1.2 million house at Lake Las Vegas, one of the region's most expensive enclaves. She plans to live there during her three-year run at Caesars Palace.
Located 17 miles south of the Strip in Henderson, Nev., Lake Las Vegas is a mixed-use development that includes Hyatt and Ritz-Carlton hotels, three golf courses, more than 200 homes and a 320-acre private lake. There also is a new gambling operation, Casino Monte Lago.
One of the 13 subdivisions is Vila di Lago, a gated community that overlooks the lake and a golf course. It was the site in January of show homes that were displayed during the annual convention of the National Association of Home Builders.
Dubbed the New American Home, the show homes actually consisted of three townhouses priced from $850,000 to $1 million.
However, the bulk of housing in Las Vegas is in a much more affordable range.
Most residences are low-rise, with stucco walls in desert sand colors and red-tile roofs. Single-family homes have private backyards with solid, 6-foot-high fences.
With only 4 inches of rainfall a year, green lawns are the exception. Most homeowners opt for desert landscaping, usually a mix of rocks and cacti.
Venable noted that retirement housing accounts for 18 percent of the growth in Las Vegas.
"This is an ideal place for retirees. It has outdoor recreation, including golf and water sports, and gaming is another activity," he said.
Flying over Las Vegas gives the false impression that it is surrounded by an unlimited supply of vacant desert for future development.
Surprisingly, builders are worried about running out of land.
"Land is an issue. Most of it is federal. All the big tracts are owned by the government," said Venable.
He described the situation as creating an artificial shortage.
"The Bureau of Land Management periodically auctions off property, and that drives up the cost," he said.
Venable noted that land prices have increased from $90,000 an acre in 1995 to as much as $250,000 an acre now.
"Projections are that we have six to eight years of land left. But I feel that will expand to many more years," Venable said.
One way to conserve land is to build higher. So far, though, the only high-rise condos are near the Strip.
Condo developers are betting the sky is the limit in this world-famous action-oriented location. High-rise condos are popping up at several sites near the Strip. But is this a high-stakes gamble by real estate developers? How many people will want to live in a neighborhood that attracts 35 million visitors a year?
Even so, construction continues. One of the new projects is Turnberry Place, which is planned for four 40-story towers. Two are finished, one is under construction and the last one is expected to go up by 2005.
Turnberry Place targets high-roller-type buyers. Prices for 1,550 to 8,000 square feet range from $500,000 to $5.2 million. Amenities include a private club and balconies with views of the Strip, the valley and mountains in the distance.
The summer heat is an issue for some newly arrived residents.
"You learn to adjust to the summer heat," Bryson said. "For grocery shopping, I'll go in early morning or late at night.
Developer Venable said the weather "is milder in Las Vegas than in Arizona or Florida. The altitude here is 3,000 feet, so we cool off at night into the 70s, even if it's 100 during the day." (Today's forecast is for a high of 114 and a low of 84.)
While Las Vegas swelters in 100-degree daytime temperatures from June to September, "the rest of the year is beautiful. There's a huge emphasis on outdoor living here," said Nikki Liesse, operations and marketing coordinator for Centex Homes.
