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September 5, 2018

Is Las Vegas in need in of more apartment building housing?

Affordable Housing

As a Vegas local, I’m often asked, “Where do you live?” It’s always puzzling to me (even after 9 years as a local) that Vegas tourists think we all “live in the casinos on the famous Las Vegas Strip.”As the Entertainment Capital of the World, Las Vegas is known for gambling, shopping, live entertainment, high-rise buildings, hotels, casinos and resorts. Very few people consider where the locals live.  The demand for living in Clark County, Las Vegas is high. Las Vegas has a housing shortage. Inventory is currently very low, as the greater Las Vegas area has less than a two month supply of existing homes available for sale. With single family home prices in the Las Vegas area of Southern Nevada, holding steady at a median price of $290,000 and condominium and town homes selling for a median price of $166,000, prices are up an average of 11-20% year over year. (1). A February 2018 Las Vegas Review Journal article reported “about 197,000 more affordable rentals are needed” in Clark and Washoe counties. (2) With a shortage of inventory it means people are searching for a place to live and coming up short on options.

Where will people live who can’t purchase, who need a place to live while they search for, or build their dream home? Since casino-living is not generally an option, apartment living is a great short term alternative to home ownership. 63% of the greater Las Vegas area is single unit living, where as 34% is multi-unit housing. 48% of the greater Las Vegas population rents. (3) That’s great news for investors looking for alternative income streams. Investing in multi-family housing units allows for a great return on investment. Not only can you benefit from the property values increasing but with an annual rent increase of 5%, (4) investors can easily increase their return on investment yield, year over year. Living in Las Vegas costs approximately 3% more than the national average. (5) Rent costs are generally not a concern and as a December 2017 Huffington Post article reports “Las Vegas residents earn a median income of $50,903, which is $450 more than the amount needed to live well there, showing this city offers earning opportunities that match local living costs.” (6) So what is the solution?

Housing Shortage Solution

A solution to the housing shortage in Nevada is building more luxury condo and apartment buildings. Downtown is a prime location. With the revitalization of the downtown entertainment district over the past few years, and the current Project Enchilada in the works, (7) we will continue to see the area transform from closed motels to an area with new curb appeal and retail projects popping up. Housing will be a must. With the development of the Raiders NFL Stadium on the south-side of the Vegas Strip, “The Raider Effect” is expected to increase the demand for out of state California residents to purchase vacation homes locally. (8) Housing is the only solution to solving the housing shortage.

Investors, take note… Apartment living is necessary in Las Vegas. Buildings will be transformed and apartment buildings will be erected on dirt lots, don’t miss this opportunity. Attracting the desired clientele and getting top dollar for your apartment build will be dependent on the nature of the attraction. Let’s get designing.

Who will be your Architect and Design firm of choice?

SCA Design, LLC, is a leading local architectural firm serving Nevada and the greater Las Vegas area. As a leader is custom design-build, tenant improvements and interior design planning, Architect Sheldon Colen and his team at SCA Design, LLC, are your smart choice to provide you with exceptional service and hospitality as they take your apartment investment dreams and turn them into a reality. Rather it be a building design plan that awes,  a tenant improvement that impresses or a design that stuns, SCA Design will deliver on their promise of on-time and affordable services. Attracting the desired clientele and getting top dollar for your apartment build will be dependent on the nature of the attraction. Allow SCA Design to create a custom build plan that surpasses the expectations of the Las Vegas design and real estate critics alike.

SCA Design, LLC was established in 1995 and is a medium sized firm located at 2580 St. Rose Parkway, Suite 305, Henderson, Nevada. SCA Design specializes in Residential, Commercial, Retail, and Interior Design. Visitwww.SCADesign.comand view the portfolio of local design projects completed. Contact Nickel Lowman at SCA Design at 702-719-2020, for media related questions and inquiries.

 

Footnotes:

(1) Southern Nevada home prices leveling off this summer; GLVAR housing statistics for July 2018, http://homelasvegas.com/housing-market-report/

(2) Tax reform a hurdle in fixing Nevada’s affordable housing shortage, https://www.reviewjournal.com/news/politics-and-government/nevada/tax-reform-a-hurdle-in-fixing-nevadas-affordable-housing-shortage/

(3) Census Reporter, Las Vegas https://censusreporter.org/profiles/16000US3240000-las-vegas-nv/

(4) Buying vs. Renting http://homelasvegas.com/buying-vs-renting/

(5) Cost of Living in Las Vegas, Nevada, https://www.payscale.com/cost-of-living-calculator/Nevada-Las-Vegas

(6) How Much Money You Need to Live Comfortably in the 50 Biggest Cities https://www.huffingtonpost.com/gobankingrates/how-much-money-you-need-t_b_9728876.html

(7) Project Enchilada is master plan for downtown Las Vegas, https://www.reviewjournal.com/news/politics-and-government/las-vegas/project-enchilada-is-master-plan-for-downtown-las-vegas

(8) Experts: Raiders Effect will be focused on luxury, condo market, https://businesspress.vegas/real-estate/experts-raiders-effect-will-be-focused-on-luxury-condo-market

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