North Las Vegas # 1 in the local new housing market

North Las Vegas has tripled new home sales over the past two years and became the No.1 market in 2020, overtaking the Southwest Valley, which had been the dominant player in Southern Nevada for years with the former No. 2 Henderson.

North Las Vegas is poised to become the dominant player in the valley this decade and build on the city’s current population of 258,000.

North Las Vegas captured just 11% of the market share of new homes sold in the first half of 2018.

But new data from Las Vegas-based Home Builders Research showed that northern Las Vegas reached 27% market share in southern Nevada in 2020, surpassing its 20% in 2019. While sales at North Las Vegas have tripled since 2018, they are 49 percent more than in 2019.

There were 776 sales in 2016; 939 sales in 2017; 1,202 sales in 2018; 1,986 sales in 2019; and 2,952 sales in 2020.

The Southwest Valley, which reached 36% in the first half of 2018 and was 28% for all of 2019, fell to 23.5% in 2020.

Henderson, which was 24% in the first half of 2018 and 22.3% in the 12 months of 2019, has fallen to 20.3% in 2020.

The Northwest Valley remained stable at 19.6% in 2019 and 2020. It was 19% in the first half of 2018.

The North Las Vegas trendline appears in the raw numbers.

The rise of North Las Vegas can be attributed to the launch of its new planned communities. Valley Vista, a DR Horton project that made 378 sales in 2019, had 1,073 sales in 2020, Home Builders Research reported.

National research firm RCLCO ranked Valley Vista 6th in the country in 2020 after being unranked in 2019. It opened in September 2018.

The last time a community in northern Las Vegas was ranked in the national top 10 was Aliante in 2005 at No. 4, according to RCLCO.

North Las Vegas was also helped by the Villages at Tule Springs with 543 sales in 2020, up from 512 in 2019. Tule Springs opened in February 2018 with KB Home, Lennar and Tri Pointe Homes, formerly Pardee Homes, as builders.

Sedona Ranch, a project of Beazer, Pulte and Century Communities and opened in October 2018, recorded 165 sales in 2020 after recording 196 in 2019.

More is to come.

Taylor Morrison’s Palmer Ranch near the VA Hospital launched in 2020. Touchstone Village recently opened its watercolor community off the 215 Beltway and has townhouses, duplexes, and single family homes. Its prices start in the $ 200,000 range.

North Las Vegas has a large portion of the development land for housing in the Valley. For years it has tried to overcome a stigma of crime and aging infrastructure associated with its older sections.

There has been a lot of redevelopment and revitalization downtown and new development across the city with new shopping and retail centers.

Jobs are being created by Amazon, the French cosmetics company Sephora and various manufacturers in the Apex industrial park. Nellis Air Base is expanding. Downtown North Las Vegas is revitalized and the VA Medical Center is attracting residents.

North Las Vegas Mayor John Lee said business and job creation has helped fuel housing development. The city has been determined over the years to be what it has become – a self-contained community that has all the elements – rather than a dormitory community of Las Vegas and the Strip.

No one has to leave North Las Vegas to enjoy an amenity any longer, Lee said. The city’s focus on charter schools, restaurants and job creation has paid off.

“I can promise that unless something happens in the economy, the next five years we will be the leader every year,” Lee said. “If people want to work up north, they won’t want to live in Henderson and go back and forth every day. The convenience of North Las Vegas for new industries is what makes this possible. The VA Hospital has been a huge magnet for us.

For those who grew up in the Valley, Lee said their take on North Las Vegas is the Old Downtown. For those who are new to the area, they see new housing development and more affordable prices that give people what they need.

“Those days are long gone,” Lee said of past stigma. “North Las Vegas is the new growth area for this valley. About 50% of northern Las Vegas hasn’t even been built yet.

The biggest factor in North Las Vegas’ success has been the availability and price of land, said Andrew Smith, president of Home Builders Research. He also thanked the city for being favorable to the manufacturers to deal quickly with the developments.

“As the supply of land has continued to decline and prices have risen, builders are going to look for where the cheapest land is,” Smith said. “It was in North Las Vegas. You saw builders come in five to ten years ago and you think they would never go to North Las Vegas.”

Smith said most of the new development is in the northern part of town, near the 215 Beltway, from Aliante Parkway to Interstate 15. There is a lot of empty land for this development to continue. which is facilitated by job creation in the region, he said.

“The other master plans around town have land, but they’re much more expensive,” Smith said. “You can stretch your dollar in North Las Vegas relative to other parts of the city.”

The average builders’ base price asking for homes in North Las Vegas is just under $ 340,000, or $ 169 per square foot, Smith said. By comparison, in the Southwest Valley, it’s $ 497,000, or $ 202 per square foot, he said.

“In the size and price of the starting home – here are three bedrooms and 2 ½ baths, two stories and 1,500 (square feet) to 2,200 square feet – and plenty of choice in North Las Vegas for this buyer” , said Smith.

Nat Hodgson, CEO of the Southern Nevada Home Builders Association, said he wasn’t surprised.

“The land is here,” Hodgson said. “North Las Vegas probably has more undeveloped land than anyone else. We knew it was going to happen. I thought it would happen about a year earlier. I don’t see that changing for a long time. I think it would be bigger there right now if COVID didn’t happen. “

Hodgson credited North Las Vegas with being builder-friendly in handling projects, which helps developments move forward faster. He credits Mayor Lee.

“We worked on a lot of obstacles that got in the way of previous leaders and builders like build there,” Hodgson said.

“I see North Las Vegas heading in the same direction (like Henderson),” said Mark Fine, a longtime Las Vegas developer. “It’s just about having the right leadership and continuing to improve the quality of life. Much of the vacant land is in North Las Vegas as it will experience growth. It will come on a par with everyone.

Fine, who was responsible for the development of Green Valley in 1975 and Summerlin in the 1990s and played a role with Inspirada in Henderson, Mountain’s Edge, Providence and Queensridge, said he was not surprised by what was happening. was going to North Las Vegas.

He said Henderson also had a “negative brand” at one point – known as Hendertucky at one point – but over the years she has become a dominant player in the housing market. He said North Las Vegas was way ahead of Henderson 40 years ago and on a good trajectory.

North Las Vegas is evolving its brand like Henderson did, but it doesn’t happen overnight, Fine said. Every year it gets better.

“It’s building a brand and it takes a long time,” Fine said. “You won’t distinguish between any of the entities in five to ten years. Stigmata are moving targets. North Las Vegas is going to attract a lot of people, and I think they are going to build a quality of life. Is it going to have golf courses and high end amenities. Who thought Henderson would have them 25 to 30 years ago? There are a lot of opportunities. “

Fine said it will be essential for North Las Vegas to continue to build infrastructure, parks and community facilities that will appeal to everyone and make it comparable to other parts of the valley. The city needs to ensure that not only entry-level housing is built, but also upper, upper, mid-price and even higher price ranges, including luxury, he said. .

“It just can’t be entry-level housing,” Fine said. “People want to evolve, but they want to evolve in the neighborhood in which they live. Cities must be aware of encouraging manufacturers to build all these different types of segments. A good community must be well balanced. They did it with Aliante.

Homebuilder research rankings

Summerlin remained the # 1 planned community in Las Vegas with 1,349 sales, up from 1,341 in 2019, according to data from Home Builders Research. It was the No. 3 in the country, reported RCLCO.

Valley Vista was # 2, followed by Cadence in Henderson with 701 sales, up from 612 in 2019.

Inspirada was # 4 with 630 sales, up from 646 in 2019.

Tule Springs came in at No.5. It was followed by Skye Canyon with 495, up from 463 in 2019.

Lake Las Vegas moved up to 7th place with 265 sales, up from 156 in 2019.

Sedona Ranch was # 8 and was followed by Southern Highlands with 151 sales, up from 179 in 2019.

Mountain’s Edge in the West Valley was No. 10 with 144 sales, up from 131 in 2019.