Wednesday, Feb. 4, 2004 | 10:56 a.m.
In an attempt to grapple with what some believe is a growing problem in the Las Vegas Valley -- spiraling land costs compared to the slower growth in incomes -- the Greater Las Vegas Association of Realtors brought interested parties together Tuesday for its first Housing Needs Assessment Summit.
Industry leaders again raised concerns that a land shortage and restrictions by local municipalities are helping restrict the availability of affordable homes -- but a local study shows that only 22 percent of residents think there is a serious problem.
"Every day I see families being priced out of the market," said Lee Barrett, the association's president.
Barrett told the audience of about 500 people, mostly real estate agents, that the local market isn't hot -- it's cutthroat.
"We had one property listed for $216,000 and it sold for $265,000," he said.
Others told stories about more than 40 offers on a single property, with the winning offer $60,000 above list price.
Home prices, both new and previously owned, have increased 12 to 14 percent in 12 months.
But despite what home buyers are experiencing in the market, a poll commissioned by the association showed that few valley residents think there is a problem.
The survey, completed last week, shows that only 22 percent of residents are very concerned about area housing costs. Another 33 percent said they were somewhat concerned, while 43 percent said they were not very concerned, or not concerned at all.
Of the renters that were polled, 62 percent were concerned about the cost of housing and were worried about having to live in an undesirable area in order to buy a home.
"What happens then, is people panic because they think they need to buy now or they'll never be able to afford a home," said Stuart Elway, president of Elway Research Inc., which conducted the survey.
Many panelists said that the Bureau of Land Management is not releasing land fast enough through public auction to satisfy demand.
"Unless we get more land, even rich people won't be able to afford land," said Las Vegas Mayor Oscar Goodman, one of the summit's panelists.
Prices in some parts of the valley have reached $400,000 an acre for raw residential land, said Mike Clauretie, a professor of real estate finance at the University of Nevada, Las Vegas.
He said increasing housing density will help ease the financial crunch.
"If we are not able to spread out, then if we have to have affordable housing, we have to have more dense housing, either apartments or condos or more dense housing," he said.
Goodman called for a discussion on inclusionary zoning, an idea that most developers shun, which mandates affordable housing within new developments.
Irene Porter, executive director of the Southern Nevada Home Builders Association, a lobbying group for local builders, said inclusionary zoning is the worst thing municipalities could do.
"Inclusionary zoning in the end increases prices for some and decreases (an affordable supply) for others," she said.
Porter said cities need to relax design standards, encourage a variety of housing, such as apartments, condos, town homes, and dense single-family homes while reducing fees and taxes to help get more affordable-priced products to the market.
"We are unable in this community to build an entry level subdivision," she said.
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