Short on land, long on steps

Jennifer Shubinski

Thursday, Sept. 22, 2005 | 11:09 a.m.

No need for an exercise room in some new homes popping up -- way up -- around the valley.

KB Home, the valley's largest homebuilder, has started construction on three-story homes in North Las Vegas with plans to roll the product out in the southwest Las Vegas Valley. The builder also is introducing five-plex houses, alley-loaded houses, and has future plans for luxury 6,000-square-foot homes.

The three-story homes, in sizes from 1,965 square feet start at $298,290.

Basic floor plans show the houses with a garage and bedroom or room on the first floor, with the kitchen and family rooms on the second floor and the master bedroom on the third floor.

"We're really excited about our three-story product," said Don DelGiorno, KB Home Nevada division president. "It's offering consumers more choices along with increased square footage on a smaller lot."

Offering more on a smaller lot is important to homebuilders as the price for residential land in the valley continues to soar and the availability of that land continues to dwindle.

By building three-story homes, KB Home is able to fit seven to nine homes on an acre, as opposed to its average of six homes an acre for its standard product.

DelGiorno, who was promoted to KB Home Nevada division president less than a month ago, said the higher density also helps offer a slightly more affordable product. The base price for KB's three-story homes is about $20,000 less than the Las Vegas Valley's median new home price for August.

KB Home is not the first valley homebuilder to unveil three-story houses in the Las Vegas market.

Astoria Homes introduced its three-story homes in the northwest part of the Las Vegas Valley last year.

Richmond American Homes has started rolling out numerous three-story home plans for sale throughout the Las Vegas Valley.

Richmond American Homes' three-story houses start at around 1,430 square feet, priced at just under $240,000 to more than 1,900 square feet starting at $335,990. Its smaller models offer a tandem two-car garage.

Dennis Smith, president or research firm Homebuilders Research Inc., said he's surprised more builders haven't started offering three-story homes.

"There're a lot of small builders that should and a lot of big builders that should," he said.

As to whether or not a three-story home is something buyers want, as local builders have said, Smith said it's more a question of whether or not buyers will accept the product.

"Do people really want a three-story house? Why would you want a three-story house? I can't think of a reason why," Smith said. "I think it's more of an issue of what can we build here and what consumers will accept and how we can make it appeal to buyers."

The concept of a three story house is relatively new to the Las Vegas Valley and the simple novelty and newness might appeal to buyers, he said.

"You can't put a box out there anymore. It has to have some appeal and perceived value," Smith said.

In addition to its three-story houses, KB Home also is rolling out other products new to the Las Vegas Valley, including a five-plex model and homes that have garages in the back.

The builder's Quintessa product takes the leap from its current Tripoly triplex model -- which continues to have buyer waiting lists throughout the valley -- to five units in one building.

The five-plex will have three "flats" and two townhome units per building. Unlike the Tripoly product, which caters to first-time homebuyers, Quintessa units will have numerous amenities and upgrades and will be marketed to a higher price-level buyer.

"It's geared toward a higher lifestyle preference buyer, with all the bells and whistles," said Shelly Stewart, KB Home Nevada executive vice president.

The five-plexes will first be built in the Mountain's Edge master plan. Prices have not yet been set.

KB Home also is introducing its Manchester product to the Las Vegas Valley. The houses are alley loaded, meaning the garages and driveways are accessed by an alley or street behind the house.

Unlike most of the houses in the Las Vegas area, KB's Manchester homes will not be dominated by prominent garages in the front of the house, DelGiorno said.

And in a departure from its entry-home buyer image in the Las Vegas Valley, the homebuilder plans to offer a luxury home product with more than 6,000-square feet under roof.

DelGiorno was mum on details about when and where in town that product will be introduced.

KB Home's Chairman and Chief Executive Bruce Karatz said in past quarterly conference calls that its luxury housing and other move-up product is key to the company's future success.