Las Vegas Homebuilders Say They’re Optimistic for 2024 Despite Lack of Land to Develop

LAS VEGAS, NV – At the organization’s recent annual breakfast meeting, the Southern Nevada Home Builders Association welcomed over 170 building executives, with many expressing optimism for home development in Las Vegas in 2024 while also noting that they still face significant hurdles in terms of the lack of available land to them; something that continues to usher in affordability concerns for homebuyers.

Many Las Vegas builders at the breakfast – which was held Tuesday at The Orleans Hotel and Casino – stated that the continuing development of the city’s sports and entertainment industries have contributed greatly to the construction business in recent years.

The recent boom in the Las Vegas economy as a result of new professional sporting teams transplanting themselves to the city – in addition to new entertainment venues, events, and low cost of living relative to other regions in the country – has lured numerous new inhabitants in recent months who are in need of housing options, noted Frank Wyatt, President of Pinnacle Homes.

With the Raiders, Golden Knights, Formula One, I think the ultra high-end has been most affected by what’s going on,” he said. “There are more people (who) have a lot of money that are moving to town in higher numbers than ever.”

Some of the phrases brandied about regarding the Vegas new home market by builders included “good, improving, stable, and moderating.” The market – following a slow second half of 2022 due to rising interest rates driving up development costs – saw a 22% jump in net sales in 2023.

The new home building market has seen continued growth since October amid falling interest rates – which are currently under 7% – with builders now attempting to attract buyers by offering attractive incentives.

However, Wyatt said that the lack of available land to develop has hamstrung efforts of Southern Nevada builders to address housing needs, and called upon Congress to pass a law in order to make more federal land available for that purpose.

We live and work in a land-constrained community,” Wyatt said. “It’s probably one of the most constrained in the United States. It does nothing but increase the price of the end product to the homebuyer. We pay as much for land as we can justify and the home price is based on our cost. It’s not going to get any better.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to Clark County property records recently unearthed, 1.62 acres of land on the Las Vegas Strip were clandestinely purchased by MGM Resorts International in May 2023 for $54 million.

Located in-between the Bellagio and the Cosmopolitan, just south of the iconic fountains, the property in question had previously been owned by Steve Wynn, who at the time also owned the Bellagio, Mirage, and Treasure Island. MGM bought those venues from Wynn in 2000, and in the process inherited the real estate developer and art collector’s rights to the 1.62-acre plot of land – currently zoned as a vacant lot – that it later went on to purchase in May.

The casino giant has not yet publicly revealed their plans for the plot of land, but experts find the purchase intriguing given the fact that MGM does not own the majority of the property upon which their resorts and casinos are located. For example, many of the MGM owned and operated casino hotels on the Las Vegas Strip are actually located on land owned by VICI Properties.

Since the news of last year’s sale has been publicly revealed, many in the real estate industry have wondered what MGM‘s plans for the property could be; however, experts say is unlikely that it will be used for another hotel or casino, given the relatively small size of the plot. Likewise, it is not expected to be used to create any sort of pedestrian connection between the Bellagio and the Cosmopolitan given the fact a covered walkway leading to an escalator already exists for that purpose.

Some experts say that the most likely use for the land on part of MGM is to sit on it while its value appreciates – typical of the finite amount of real estate on the Strip – with the intention of eventually selling it off to another entity to develop.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – An apartment complex catering to low-income seniors has begun construction in the southwest Las Vegas Valley this week, a project spearheaded by a local non-profit organization known as Nevada Hand that is looking to address affordability concerns for elder residents.

Dubbed Buffalo Cactus Senior Apartments, and owned by Buffalo Cactus LP, the complex is located on Buffalo Drive and Cactus Avenue and, upon completion, will take the form of a 125-unit community for senior citizens, according to Nevada Hand’s Vice President of Community Affairs Wally Swenson.

We’re excited here to be breaking ground,” he said. “The only day that I’m more excited about than breaking ground is the day, we call it key day, when we give keys to the residents when they can move in.”

Swenson was on hand at this week’s groundbreaking, wearing a hard hat and getting his hands dirty with the rest of the crew in an attempt to keep up with the increasing demand for affordable housing in Las Vegas, particularly when it comes to its most vulnerable citizens.

We have a housing crisis throughout the nation and we have one locally,” he said. “We have one statewide. 84,000 is the gap between what we currently have and what we need.”

Buffalo Cactus Senior Apartments isn’t the only project that Nevada Hand has in the works to further their goal. In addition, they’re also currently building an additional 2,000 affordable units throughout the city, as well as housing 8,000 seniors and low-income families currently throughout 5,000 units they have already completed.

According to Nevada Hand, Buffalo Cactus Senior Apartments is targeted at individuals making between $20,000 and $35,000 per year, which is considered to be in the low to very low-income range. In contrast, the average one-person household adjusted income in the Las Vegas Valley is $60,700, as per the U.S. Department of Housing and Urban Development.

Nevada Hand is a non-profit that – in addition to housing – provides other services for seniors and low-income families in the city, including shuttles for their tenants and a food bank. The organization accepts donations, and if you are interested in helping to support them, please click here.

For more information on affordable housing call (702) 739-3345 or visit the Nevada Hand website; https://www.nevadahand.org, Nevada’s Nonprofit Leader in Affordable Housing.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – Despite an increase in sales prices over the course of 2023, a new report indicates that the year was the slowest the Las Vegas Valley housing market has seen since 2008 – a time span of 15 years – with an 18 percent drop from 2022 alone.

According to new statistics from Las Vegas Realtors, in December 2023 the medium price of a single-family home was $449,900, an increase of approximately 6% when compared to the same month in 2022, when that amount was $425,000. However, December 2023’s prices still fall below the all-time record of $482,000, which was originally set in May 2022.

Las Vegas Realtors President Merri Perry – who recently succeeded Lee Barrett in the position – said that the fall in sales can mostly be attributed to a limited housing supply in the region, and anticipates that 2024 will see the Las Vegas real estate scene bounce back in a very real way.

It was good to see interest rates coming back down late in the year. That helps more buyers afford a home,” Perry said. “While we still need more homes on the market, many national experts are predicting at least some increase in the housing supply as we get into 2024. That should help buyers and help us sell more homes.”

Overall, 29,069 existing homes, condominiums, and townhomes were sold in Southern Nevada in 2023, a decrease of 18% from 2022, when 35,584 were sold; in contrast, 2021 saw a record-setting number of home sales for the year at 50,010.

Listings of new homes in Las Vegas saw a 10.3% decrease when compared to November, and a 30% decrease year-over-year. However, housing prices jumped 1.3% in December from the previous month and a whopping 19.5% from December 2022.

Experts are also attributing “sticker shock” to the slowdown in home sales due to elevated interest rates on mortgages. But with those rates anticipated to begin to slowly drop in the coming year, that may fuel more instances of home purchases, particularly in light of the fact that home values currently don’t appear to be dropping. After all, if rates start to drop but prices continue to increase, experts say, it’s better to buy now than in the future when prices may be even higher.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – A vacant office building in the city of Las Vegas has been purchased by the Las Vegas Valley Water District (LVVWD) for $21.3 million from the Class B asset’s previous owner, Meadow View Associates and BoydT2.

Located at 330 South Valley View Boulevard, the two-story, 166,409-square-foot building – which was fully vacant at the time of the sale – is located on approximately 10 acres of land. It was originally built in 1983 and has 870 parking spots.

The sellers were represented by Cushman & Wakefield and two other brokers, according to property records.

The building had been previously used by Centel/Sprint and, according to LVVWD spokesperson Bronson Mack, will now serve a number of different and useful purposes, including enhancing water utility operations and the district’s communications infrastructure. In addition, Mack noted that the property would also make an excellent location for a new groundwater well.

As the LVVWD replaces existing operational wells that are reaching the end of the service lifecycle, it is necessary to replace them and this site provides a good location for production wells to access the groundwater system,” he said.

Marlene Fujita Winkel of Cushman & Wakefield said in a statement announcing the sale that the building and its property should be very useful for the LVVWD, as it will add to the district’s already impressive portfolio of land ownership in Southern Nevada.

The property also resides just a few miles west of downtown Las Vegas and the World Market Center and is proximate to two premier master-planned communities, Summerlin and Green Valley,” he said. “It is well-suited for the real estate and locational needs of the LVVWD and the property it currently owns next door.”

The purchase goes along with the LVVWD’s ownership of 251 acres right across the street, which is comprised of administrative buildings, operation support, utility infrastructure, public education buildings, wells, watered storage tanks, and Springs Preserve, a 180-acre land preserve that is open to the public.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to a new report released this week, a Dallas-based corporate landlord backed by Wall Street purchased hundreds of homes in Clark County in a massive sale that took place on a single day in the summer of 2023.

Spread out amongst three separate residential transactions that took place on July 18, a whopping 264 homes in Clark County were purchased by Invitation Homes (NYSE: INVH) from the Miami-based investment firm Starwood Capital Group. The three transactions consisted of $57.5 million for 155 homes, $26.3 million for 70 homes, and $14.1 million for 39 homes, for a grand total of $98 million, as per Clark County property records.

94 of the homes sold were located in the city of Las Vegas, With an additional 77 homes in North Las Vegas. The purchase price for the homes in question ranged from between $292,000 to $694,000, with the average price being $371,514.

While that deal between Starwood Capital and Invitation Homes may seem mind-bogglingly huge, it was merely part of a larger transaction between the two entities that consisted of a $650 million real estate portfolio swap for approximately 1,900 single-family rental homes, most of which are spread out amongst areas in Texas, Florida, Arizona, Nevada, and California.

The deal is part of an ongoing phenomenon where hedge funds and corporate landlords backed by Wall Street – in addition to affluent investors – have been responsible for a rash of purchases of single-family homes across the country in recent years that they then typically utilize as rental properties. However, experts say this has been contributing to a shortage of affordable housing for families, in addition to being responsible for a rise in rental rates as well.

At this rate, according to a study by MetLife Investment Management, by 2030 approximately 40 percent of all houses in the United States could be owned by Wall Street corporations.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The 299-room SpringHill Suites by Marriott Las Vegas Convention Center has been sold for approximately $75 million to real estate investment trust (REIT) Apple Hospitality, as per a joint announcement issued by the two parties.

Located next to the Las Vegas Convention Center at 2989 Paradise Road, Springhill Suites Las Vegas originally opened in October 2009 and boasts over 10,000 square-feet of flexible indoor and outdoor meeting space, in addition to a pool located on the rooftop, a full fitness center, an onsite market and restaurant that is open 24 hours a day, seven days a week, and a massive carpark that comes in at a full seven stories.

The $75 million paid by Apple Hospitality translates to approximately $251,000 per each of the hotel’s 299 rooms.

Apple Hospitality’s President of Real Estate and Investments, Nelson Knight, said that the acquisition of Springhill Suites was part of his firm’s ongoing plan to further entrench themselves in the ever-evolving and growing tourism trade in Las Vegas, citing recent hot new editions to the city’s entertainment and sporting scenes.

Las Vegas, well known as a premier gaming and entertainment destination, has dynamically expanded in recent years with the arrival of major league sports teams, the Sphere and Formula 1 racing, to capture an even larger segment of leisure travel demand,” he said. “In addition to robust leisure demand, the hotel benefits from its proximity to the newly expanded Las Vegas Convention Center, one of the largest and busiest convention centers in the world, and its own indoor/outdoor function space.”

Knight also noted that the $75 million that Apple Hospitality paid to acquire SpringHill Suites was a bargain considering the significant return on their investment that is expected.

The attractive purchase price is just under a 10.7x multiple on trailing twelve-month hotel EBITDA,” he said. “With a strong recovery in overall demand, positive supply dynamics, the recent development and expansion of large-scale entertainment and convention venues, and the upcoming Super Bowl LVIII, we expect performance for Las Vegas and for this hotel to continue to strengthen.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The second-oldest hotel on the Las Vegas Strip, the Tropicana, will be closed and imploded in 2024 following its partial closure in November to make way for the construction of a new home stadium for the transplanted Oakland Athletics Major League Baseball (MLB) team, signifying the loss of a major piece of Southern Nevada history in the process as the city moves on to a new year.

The Athletics’ ownership has reached a deal with the Tropicana’s operator, Bally’s Corp., and the owner of the resort casino’s underlying land, Vici Properties. In addition, the industry-leading construction firms responsible for building Allegiant Stadium – the Mortenson | McCarthy Joint Venture – have been contracted to build the MLB team’s proposed new $1.5 billion ballpark on the Las Vegas Strip.

The A’s previously announced that the firms will be responsible for handling all construction-related duties on the upcoming stadium, including estimates prior to the start of construction, scheduling and logistics planning, bidding, coordinating and managing labor, and engaging with the community.

The A’s home stadium – a project expected to cost a total of $1.5 billion – is slated to take the form of a 33,000-seat retractable roof stadium. $380 million in public funds have been earmarked for the A’s new stadium, and the project in its current form could potentially also receive up to $180 million in transferable tax credits as well.

One of the big goals is going to be flexibility for a unique seating capacity, anywhere between 30,000 to 33,000 seats,” A’s Design Director Brad Schrock said. “That really puts us in a sweet spot for a lot of other events aside from just baseball. So, we want to make sure the way that the seating bowl is designed has the flexibility to accommodate multiple events and that it’s a really fun place for fans to come and watch a game.”

The A’s are expected to play their first season in Las Vegas in 2028.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – As 2023 draws to a close on one of the more unusual and noteworthy years in Las Vegas real estate, let’s take a look back over the past 365 days and highlight the top residential sales that have taken place in Southern Nevada. Despite the market experiencing a slowdown overall, some very high-priced homes changed hands in Clark County in 2023, and below you’ll see the top five in reverse order, with the exception of multiparcel sales.

Number five is Skyspace, located at 7 Painted Feather Way in Summerlin’s The Ridges neighborhood, which sold in September for $15.9 million. The 12,162 square-foot residence boasts five bedrooms, six bathrooms, and numerous high-end touches, including a full Italian Scavolini kitchen.

Coming in at number four is a mansion at 8 Rockmount Court in Henderson’s affluent Ascaya community.  This 12,101 square foot home is located on a 2.27-acre plot of land and sold in June for $20.5 million. It has six bedrooms, seven bathrooms, a six-car garage, a pool, and even a putting green.

Number three is a residence located at 11765 Discovery Canyon Drive in Summerlin’s pricey The Summit Club, which traded hands in August for $21.2 million. The home – which was reportedly purchased by an individual on behalf of Hollywood actor Mark Wahlberg – comes in at 8,419 square feet and has six bedrooms, 7 bathrooms, and a pool.

A massive mega-mansion compound located on a 16-acre plot of land at 99 Spanish Gate Drive in Las Vegas’ wealthy Spanish Trail community sold in December for $25 million. The compound – previously linked to Jefri Bolkiah, the prince of Brunei – boasts a super-impressive 25 bedrooms and 46 bathrooms, spread amongst 10 interconnected buildings.

And finally, the number one residential sale in Las Vegas for 2023 comes courtesy of pop megastar Celine Dion, who sold her mansion – located at 10850 Summit Club Drive in The Summit Club – in April for $30 million, setting a new all-time Clark County record in the process. Dion originally purchased the home – which comes in at over 30,985 square feet and has 9.5 bathrooms – in 2017 for 9.2 million, but reportedly never actually moved into it.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – With the last bits of COVID-19-era inflation hopefully evaporating next year, Las Vegas real estate experts are expecting current record-high home mortgage interest rates to drop slightly in 2024, slowly transforming Southern Nevada into a “buyers’ market” after several years of the reverse being the case.

However, those same experts are shooting down hopes that interest rates will eventually return to the extremely affordable levels they were at during the start of the pandemic, saying that no matter how much they do go down, elevated rates are expected to be the new norm going forward.

After the Federal Reserve raised interest rates numerous times in order to combat the 40-year high inflation gripping the nation, all eyes are on the agency after their announcement they intend to finally cut interest rates three times in 2024.

Las Vegas Realtors President Lee Barrett said he expects the overnight federal funds rate to indeed decrease next year, but does not anticipate they will eventually get back December 2022’s 4.1 percent; the current average rate for a 30-year fixed-rate mortgage is 7.2 percent.

This is going to be the new norm, higher interest rates and higher mortgage rates,” Barrett said. “They may drop, for the election a little bit, but I think 6.5 or 7 percent is where they are going to range next year.”

That being said, many real estate experts are predicting that 2024 will potentially see the Las Vegas Valley have its worst year for sales since 2008, with some saying it is a genuine mystery where the industry will head next year. However, with inflation improving and mortgage rates expected to come down a bit – leading to many who were holding out on listing their homes due to higher mortgage costs to finally do so – experts anticipate that the industry will shift towards a buyer’s market.

But that is not a certainty, experts say, as Las Vegas has a low inventory of properties currently available, and despite dropping sales figures, home sellers have for the most part been steadfastly refusing to cut their asking prices. Indeed, prices are only expected to drop 1 percent in the second and third quarters of 2024, creating what is known as a “locking” phenomenon in the Southern Nevada market.

Indeed, where the Las Vegas real estate market will go in 2024 is anybody’s guess at this point; the only thing that appears to be sure is that nothing is for sure.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – Area 15, a Las Vegas-based 126,000-square-foot science-fiction themed retail and entertainment complex that offers an “immersive” environment for attendees, broke ground on a 20-acre expansion of the facility last week.

Crews began building 36-foot walls that will enclose the expansion, with new attractions slated to include Universal Destinations & Experiences, a year-round horror entertainment experience called Horror Unleashed, indoor skydiving, and a plethora of other attractions that will cater to the ever-changing tastes of the tourists who visit Las Vegas, according to AREA15 Chief Executive Officer Winston Fisher.

Consumers continue to gravitate toward artful new forms of entertainment providing immersive experiences, authentic connections and real emotions,” Fisher said. “The demand continues to grow, and we are ready to dive into this substantial expansion and find more partnerships that will have a lasting impact on the AREA15 District and the City of Las Vegas.”

450,000 square-feet of retail and food and beverage space will be added as well, in addition to multiple building structures ranging from 1,000 to 60,000 square feet, all of which will be available for rent to merchants and businesses.

The completion date for the AREA15 expansion project has not been publicly revealed yet.

AREA15, located on a 40-acre lot in the vicinity of the Las Vegas Strip on the corner of Sirius Avenue and Rancho Drive, originally opened its doors for business in 2018 and has already attracted a reported five million visitors since then. With the name being a playful take on the infamous Area 51 – a secret U.S. Air Force base located in the Nevada desert – AREA15 offers a unique mix of conventions and expos focusing on sci-fi, fantasy, and comic books, in addition to other fanciful events and attractions.

The addition of music performances, corporate events, large-scale art exhibits, bars, nightclubs, and restaurants were originally announced when the venue first opened, and are only now coming to fruition with this new expansion.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – This year, New Year’s Eve partiers need to be on the lookout, as Airbnb will be utilizing advanced artificial intelligence technology to clamp down on parties that are held on December 31 in Sin City.

The online rental hosting service will use what they describe as “proprietary AI and machine learning technology” to ensure that individuals utilizing their service are not violating their guidelines. This, according to Airbnb, will apply to 750 guests in the Las Vegas Valley and 1,290 guests in Nevada overall. A total of approximately 63,000 people across the continental United States that will be affected by this new technology as well.

The aim of this system is to try to identify one, two and three night booking attempts for entire home listings over the holiday weekend that could be potentially higher-risk for a disruptive and unauthorized party incident and block those bookings from being made,” an Airbnb statement said. “Guests able to make local reservations will need to attest they understand Airbnb bans parties and that if they break this rule they face suspension or removal from the platform.”

According to the company, the AI technology being utilized is able to identify hundreds of various indicators that could single out an individual property as being utilized for a banned party event. Among these indicators include the length of the stay that the individual is attempting to book, the location of the listing in relation to where they are coming from, the type of listing being booked, and if the client is attempting to book the reservation at the very last minute.

Airbnb – who noted that they began to use AI technology in 2020 – said that they prevented thousands of individuals in 2022 from booking entire homes for purposes that ran afoul of their guidelines, including 63,550 in the United States alone.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.