Las Vegas Sun

March 28, 2024

Real estate column:

More builders adopting green initiatives for homes

Homebuilders are on the green-energy bandwagon these days. They see green as the best way to market homes in an economy that have seen sales plummet.

Given the low rate of new-home sales, if it’s strategy that helps the industry compete against existing homes, then it’s a strategy that makes sense.

Last week, I reported Meritage Homes unveiled what it calls the greenest production home in Las Vegas. It more than doubles energy efficiency without adding to the cost of the home.

Added to the mix now is PulteGroup, which includes Centex, Pulte Homes and Del Webb. PulteGroup has announced a program it has been testing in Las Vegas and other markets, and it’s going national.

It’s no coincidence that builders are piggybacking on the concept. The national media has been reporting on KB Home, which unveiled its plan to put stickers in its Las Vegas model homes and other locales. The stickers show how much buyers can save on their gas and electricity bills.

PulteGroup said it has long been using consumer-friendly labels, which have been compared with miles per gallon used in automobiles, to highlight the energy performance of new homes. Last year, it introduced solar power as standard in its new Summerlin community.

The question today is: How much will the green changes boost sales in a market like Las Vegas?

Las Vegas land market

More land traded hands in 2010 than it has since the recession began, but prices are down, according to Applied Analysis.

The Las Vegas research firm said 2,113 acres were transferred in 2010, a 32 percent increase from 2009 when 1,623 acres were sold. Despite the increase, which, in part, was attributed to lenders taking back ownership of properties, the sales levels are only a fourth of what they were five years ago.

The price of land sold in 2010 at $194,508 an acre was 27 percent below the $266,317 per acre in 2009, the firm reported.

When excluding resort property, the value of land sales in 2010 was $176,253, 27 percent lower than the price of $241,287 in 2009. The price was $784,150 an acre in 2007.

Applied Analysis Principal Brian Gordon said there’s no indication that land prices will increase. A large number of residential foreclosures, rising housing inventory on the market and high vacancy rates in commercial space limit demand for construction and land, he said.

“As long as the economy remains weak, including job creation and household income, there’s little incentive to develop property based on mere speculation,” Gordon said.

During last year’s fourth quarter, sales posted their lowest level of the year with 420.8 acres transferred, a 7.3 percent decrease from the third quarter and a 20.8 percent decline from the fourth quarter of 2009, the firm reported.

Distressed ownership transfers played a large role in transactions of raw land, the firm reported. Lender foreclosures accounted for 46.8 percent of the market activity.

During the fourth quarter of 2010, the biggest transaction was 30.9 acres on Tropicana Avenue between Koval Lane and Paradise Road. The vacant property was transferred for $20 million or $649,088 an acre through the foreclosure process, the firm said.

In other news

• Colliers International said its finalized a $1.2 million vacant-land sale on five acres in downtown Las Vegas adjacent to Las Vegas Boulevard. The brokerage represented City National Bank in the sale to Wild Cougar LLC. Noah Bates of Rowan Real Estate represented the buyer.

The property is zoned for hotel and multifamily use, he said.

• Burke Construction Group has started renovating Western High School. The $4.9 million project on West Bonanza Road includes demolition of the original school library and existing wood, metal and auto shop classrooms. The 120,000-square-foot renovation will feature a new library, web and video development classroom, broadcast studio, computer classrooms and new auto shop classrooms. It is designed by Tate Snyder Kimsey Architects.

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