Vegas home building hit record

Jennifer Robison

Thursday, Jan. 3, 2002 | 11:19 a.m.

Neither national recession nor catastrophic terrorist assaults kept Las Vegas home builders from posting a record year for home closings in 2001.

Overall, total home closings were up more than 8 percent in 2001 when compared with 2000, according to SalesTraq, a market monitoring firm. Home closings are expected to total more than 20,000 once official numbers from the year's end come in, according to SalesTraq.

A record number of home closings wasn't the only trend characterizing the home building industry in 2001.

Steve Bottfeld, executive vice president of Marketing Solutions, a home building industry research firm, said the market came of age in 2001.

"In the last year, we've seen a number of builders in Las Vegas mature in every aspect of their business," Bottfeld said. "From a better product to better customer service, and from more creativity to better methods of dealing with problems, they've matured. I expect that to continue into 2002."

Bottfeld said the local home-building industry will witness numerous additional trends this year as well.

Smaller lot sizes and an aging home buyer population aiming to avoid extensive yard work are forcing changes in exterior gathering space. The courtyard concept has grown in popularity in recent years, and will continue to succeed in this market, Bottfeld said.

"The courtyard will be to 2002 what the front porch was to 1994," he said. "A lot of builders are building courtyards, which are replacing the back yard as a family gathering point."

Bottfeld also said cocooning -- a desire among homeowners to entertain and be entertained at home rather than spend a night on the town -- is going to see a "rebirth" in 2002.

"This trend was in place before 9-11, but 9-11 added fuel to a fire that was already roaring," he said. "Look for a much stronger year for products like surround sound, media rooms and home offices. Look for more emphasis on family life and on being at home."

Such lifestyles will come at an increasingly hefty cost. The median home price in the Valley was up more than 10 percent in 2001 to $177,000, according to SalesTraq. Bottfeld said he expects the median price of a new home to post similar increases in 2002.

"In four years, we've gone from an affordable market to a second-move-up market, and we're beginning to see a total absence of affordable housing. Almost all affordable housing that exists here will be in an attached configuration of some sort."

Skyrocketing land prices are partly to blame for increased median home prices, but there's also less product in general, Bottfeld said. Less supply, coupled with stable demand, means higher prices.