Facebook
Fark
Digg
Reddit
StumbleNew homes springing up amid abandoned developments
A heavy equipment operator works in an area being prepared for residential development near Horizon Ridge Parkway and Gibson Road in Henderson Wednesday, June 1, 2011. The defunct Vantage Lofts project is in the background.
Friday, June 3, 2011 | 2 a.m.
Sun archives
- New-home sales up, but pace remains sluggish (5-24-2011)
- Foreclosures making it difficult for new homebuilders to compete (4-22-2011)
- Report: Providence, Mountain’s Edge among top-selling communities (4-6-2011)
- Boom-bust era leaves architectural scars across valley (12-19-2010)
- Master-planned Rhodes Ranch looking to add 222 new homes (10-14-2010)
- New-home communities take a step back (4-16-2010)
On one side of Gibson Road in Henderson sits Vantage Lofts, a cluster of half-finished structures developers once dreamed would house modern condominiums with sweeping views of the Strip. Touted as an alternative to the typical suburban home, the $160 million development broke ground in 2005.
Today, it sits empty. Chicken wire pokes from unfinished patches of stucco. Plywood covers holes where windows should hang. Shards of glass litter an entryway to the sales office.
Across the street are three more half-finished structures — single-family homes. But these are not abandoned. In fact, every day construction workers add more touches. Soon, families will tour them and perhaps buy one of the dozens of houses planned for the development.
A monument to the overbuilding of the boom sits next door to, well, more building. It’s a puzzling sight.
Why build homes when existing stock is so plentiful and cheap — and empty? In a city wracked by unemployment, foreclosure and out migration, new housing projects are counterintuitive.
Yet new housing developments are slowly springing up across the Las Vegas Valley as abandoned projects fall into disrepair.
Developers, real estate experts and housing analysts say the strategy of building amid the ruins of the boom is a sound one. There’s demand for new homes. And although more building is likely to push underwater homeowners further into the deep, it could help reignite the local economy, they say.
“Not everyone likes a used house,” said Dennis Smith, a real estate analyst and the president of Home Builders Research. “Prices are low enough that a lot of people are looking at new homes. They’re selling for historically low prices.”
In Henderson, KB and Ryland Homes are developing vacant land at Horizon Ridge Parkway and Gibson into plots for more than 200 single-family homes. The planned communities, which will sit side by side, are the second and third single-family developments to break ground in Henderson in three years.
They signal economic renewal, city Planning Manager Michael Tassi said, but are far from the beginning of a resurgence. During the boom, Tassi’s department saw three projects break ground every week.
Still, more housing developments are in the pipeline. At the same intersection where the KB model homes are going up, three more plots have been approved for housing. Most of the developers, including KB and Ryland, plan to build the homes after they are sold.
“These developers and homebuilders, their job is to build houses whether they sell quickly or slowly,” said Chris Thompson of RCI Engineering, the firm working on the KB and Ryland projects. “But I don’t think anybody is just building houses these days” without buyers lined up.
Developers learned that lesson from the bust. Years after the economy crashed, new homes in communities built at the end of the boom remain vacant. Many can be found blocks from KB’s newest models. There’s Mountain Terrace (grand reopening!), Bella Terrace Apartments (check out our specials!) and Village South (pool size lots!).
In that regard, the build-as-they-sell approach makes economic sense. If only 50 homes sell, only 50 are built.
But it also opens the door to the possibility of half-constructed communities. Case in point: Just west of the new Gibson development is the posh La Luz community, with beautiful welcome gates and only four houses. Three are bank-owned and for sale. Signs still advertise the rest of the development — “coming soon” — which has sat as vacant desert for years.
Housing analysts predict such a situation won’t be repeated with the developments being built. Each month, 300 to 400 new homes sell in the Las Vegas Valley, making up about a quarter of all home sales. Although the experts admit they have no crystal ball, many anticipate a stronger market for new housing this year than last.
Homebuilders are trying to anticipate what buyers want: bigger closets, fancier kitchens, office nooks as standard features and no dining rooms. The new houses look markedly different even from homes built five or six years ago.
Smart developers also have positioned themselves against “hard to repair” foreclosures and slow-moving short sales.
“With a foreclosure you don’t know what you are getting,” said Steve Bottfeld, a housing market analyst and the executive vice president of Marketing Solutions. “Most neighborhoods that have one foreclosure have more than one foreclosure, so you have no idea what your neighborhood is going to look like in three or four years. People don’t buy new homes to rent. People buy new homes to live in.”
Remove buyers’ preferences from the equation and Clark County needs less, not more, housing. About 16,000 homes are for sale at any given time in Las Vegas alone. Nevada has had the highest foreclosure rate in the country for 52 months straight. One out of every 97 homes are in foreclosure. And people are leaving the area faster than they are moving in. Patient buyers can snatch up distressed properties for pennies on the dollar.
But many aren’t willing to take the risk. And new houses are often only negligibly more expensive than old ones.
Residents who buy into KB’s Versante or Ryland’s Zephyr Ridge developments could get a deal. The KB houses, from 1,700 to 2,500 square feet, start selling from $180,000. The new neighborhood could be booming in a few years.
Meanwhile, there are still no plans to resume work on the abandoned Vantage Lofts.
The property was supposed to go up for sale at a recent tax auction but was pulled from the block at the last minute. It still sits half finished.
Discussion: 13 comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Three dreams come true for Flamingo headliner Marie Osmond
- MGM results improve on Las Vegas Strip spending, China growth
- Federal agents join probe into fire at site of future Islamic funeral home
- Strip Scribbles: Shania Twain in town planning Caesars Palace residency
- Judge tosses out suit challenging motorcycle helmet law enforcement
- 15-month-old toddler tests positive for hallucinogenic drug
- Construction project — possibly for a mosque — damaged by fire
- Henderson man pleads guilty to kidnapping 7-year-old girl
- Mother left 3-year-old twins, 5-year-old alone prior to fire, Metro Police charge
- Highs to hit low 70s in Las Vegas
Blogs
The Kats Report
Post it: House of Blues tuning up for a Santana residency
In pursuing a tribute to Frank Sinatra, Robert Davi is no bad actor
High School Sports Scene
High School Basketball State Championship Picks
The Kats Report
Oscar Goodman goes Shecky as Mob Museum opening prompts a mob scene (2 Comments)
Elsewhere
MGM Resorts, Ameristar form marketing alliance to draw visitors
High School Sports Scene
High School Hoops Picks: Updated with Friday's regional finals (3 Comments)
The Kats Report
What a Whitney Houston residency in Las Vegas might have looked like (5 Comments)
The Sun
Locally owned and independent for more than 50 years.
Large investors may be able to buy some of these foreclsoed homes for pennies on the dollar because they are able to buy in blocks. Individual home buyers are not getting these homes for pennies on a dollar. Many of the foreclosed homes are selling for 50% or less than what they were initially purchased at but a buyer will also be spending additional monies to make the house liveable unless it is included in their financing. Steve Bottfeld is right in saying that buying in a new home community certainly increases the chances that you are living in a community of owner occupied homes. I just purchased a NEW home and that was the main reason for doing so.
just what we need , more urban sprawl!! the nitwits who issued the building permits should be tarred,feathered and rode out of town on a rail. more empty houses for empty headed people.
""With a foreclosure you don't know what you are getting," said Steve Bottfeld"
yep...from the same guy that said "we've seen the bottom of the market" in 2008, 2009, 2010.
creating MORE inventory...of a product there is little demand for...will only make prices of that product drop. that will lead even more people to walk away from their homes.
vegas isn't coming back. ever. no corporation is going to invest there with ultra liberal reid, an uneducated workforce, and rising crime.
Completion bonds should be required for all building permits. Either the project is completed or it is torn down. Why do builders and developers have the right to leave their half finished garbage all over the valley? Separate dining rooms have been gone for years. Gee an office nook, that is a great reason for buying a new home. When these buyers are underwater in 5 years, don't complain.
"A monument to the overbuilding of the boom"
Overbuilding? Las Vegas had a 20-year boom until the crash. Had the crash never happened, the valley wouldn't be considered "overbuilt." In 2002, some neighborhoods would sell ("used") houses within hours of listing them, and ("new") communities would see people camping out to be in line to go to contract as soon as the sales office opened.
It's easy to be a Monday morning quarterback, harder to offer a balanced perspective taking into account all the facts.
If you want to live in a great community that is family oriented and people care for each other. Look no further than Coventry Homes at Anthem. The neighbors host community gatherings, block parties, Outdoor Movies in our Park, a Mom's Club, Fitness Club, Golf Club, Bunco Club, etc...
Schools: Lamping Elementary, Del Middle School, and Coronado. ALL GREAT SCHOOLS!!!
www.coventryneighborhoodwatch@yahoo.com
ralston; maybe reza will be interested, he likes it there so much. otherwise, level the sprawl and start over.
@ mred "Completion bonds should be required for all building permits. Either the project is completed or it is torn down." Good one, but actually lenders should the ones bonded and faced with demolition.
(FWIW, Dennis Williams doesn't live anywhere near Southern Nevada.)
I partially agree with the article; when you buy a resell , typically you need additional monies out of pocket to make the place move in ready (appliances, carpet, paint, little nick nacks etc...). With a new home everything is there and you're ready to go .
I think for a lot of people its easier to pay a higher mortgage payment every month rather than come up with a couple of thousand dollars out of pocket for repairs (plus down-payment/ closing costs). Also, at lower price points (<150k) sometimes you just get tired of being outbid and dealing with investors/bank run arounds.
Vantage Lofts Should Be Torn Down !!! EYE SORE,Been VACANT FOR 3 YEARS... What Happened With The TAX AUCTION ????
Be CAREFUL with what you buy. Will be more and more difficult to resell those homes on SMALL MICROSCOPIC YARDS, double sinks, cheap doors, no roof overhangs for shade.... Where have our code enforcement people been?
The building is happening because trying to buy a foreclosure or short sale in this market is an absolute nightmare. Cash investors are still coming in and snatching things up, which leaves the average home buyer at a HUGE disadvantage.
Those new houses seem like they would be unappealing given the giant empty condo structure looming in the background. Go ahead kids, play near the homeless encampments. Some investor should step up and finish Vantage lofts.
Very interesting design. It looks like something that would be located in a downtown environment not on the outskirts of town.
Cant buy a home without a clear title. Demand to see it! Do NOT sign a waiver! If it says MERS anywhere on it...turn and run! Then turn in your agent!
Why do all the morons come here to test their cockamamie ideas? Maybe they should add a Ferris wheel to the development to insure it's success?
I also think it's silly to be building new inventory, while having excessive inventory right now. I was debating on purchasing, then I found a 2 bed 2 bath w 2 car garage with a big back and front yard for 70k. No hoa's, established neighborhood, and my payment is less than 625 for 15 years. Took awhile to find it, but it came through. I recommend to people looking to buy and are getting beat out by investors, is to try homepath.com. I didnt buy through there, but i recommend checking it out Checkout their first look program, gives u a much better chance at getting a home. If u plan on staying in Vegas, I would buy.
@allaroundtown
Just want to know what MERS is please enlighten me thanks.
I just found what MERS is thanks though.
We're not overbuilt and over saturated enough! We need more empty homes! More forclsoures I tell you! More developers and financiers crying the chapter 11 blues into their Martinis at Town Square!
Actually, they should all head over for happy hour somewhere at Tivoli which will probably be the next big chapter 11 flop. After all, we are nothing if not a city of great irony.
Someone should offer to take the Vantage lofts off the busted developer for a dollar and finish them as apartments.
With the government aid to lenders that actually hold up sales to fatten the bottom line it is much easier to buy a new home than an existing one. The bailout will haunt us for years and allowing the banks to receive full credit for houses they keep unoccupied is the crime. I and several other people I know are trying to invest in Las Vegas/Henderson but can get nowhere because the houses we are attempting to buy and get off the market are being held by the bank for full payment instead of getting them off their books. Any money entering the economy is a good thing and it is an even better thing when locals are trying to invest in the community. A short sale should never take 9-12 months, end the bailout funding for the bankers who keep the homes off the market on purpose. The government (taxpayers) pay the banks more not to sell the houses...Go figure.
I can understand why the Vantage Lofts are defunct, even without the bust. Talk about urban blight. Talk about an Orwellian vision of life in little cubes.
As the wife and I visit many different neighborhoods looking to buy a "home" (vs a house) it is amazing to me the lack of imagination and creativity I see in the projects developed since 2000. We have looked at a couple of dozen existing homes in a dozen different neighborhoods around the city and most are little different from any other. Floor plans, kitchens and bathrooms differ little from one another unless you look to expensive custom homes. Tiny lots and cookie cutter designs are all too common. Apparently developers in LV have been given a free hand and little in the way of guidance or controls by the cities and county. Many homes built 4 to 10 years ago still have side and back yards amounting to nothing but rock inside a block wall.
With all the gnashing of teeth over HOAs and all the attention they are getting from the media and the legislature, you would think they would do something besides sue homeowners and turn accounts over to collection agencies who apparently were formed from vehicle towing companies.
That is a shame as individuality is a big draw and boring repitition is not. Tract homes exist in most cities across the nation today but seldom have I seen such a lack of passion allowed to be so prevalent throughout and entire town.
I guess it could be me but it seems we could take a lesson or two from many other cities that have required more of the real estate developers who come to town seeking big projects and big profits and more from the HOAs who seem to do little but give folks a hard time. Judging by the dead lawns, brown landscaping and generally unkempt blocks we have seen, they do little besides paper shuffling. I thought monies collected were to keep up general areas and unoccupied properties rather than just ignore them other than sending out notices of violation and turning accounts over to collection companies.
It is SHAMEFUL that banks are: holding onto properties, not being willing to negotiate with buyers and sellers, and continue to not work with struggling homeowners whose properties took a nosedive!
SHAME SHAME SHAME ON BANKS TOO BIG TO FAIL!
Because we are out in a DESERT and water is SCARCE, and new building is UNSUSTAINABLE in terms of water and energy resources, new building should cease. The exception would be to take an already existing lot with structures, clear it of old structures and build new on it. That would be fair to those property owners.
Otherwise, reality will eventually catch up will people. There are parts of the country where folks have built without taking water into account, and now have to haul their water to their homes and businesses regularly. Here in the U.S.A.!
Hello Vegans.. I am going to accept an very good job offer in Las Vegas. After doing research, I hear that summerlin is a great place for kids as my job would be close to it. If any of you had to do it all over again, would you buy, rent or move out of vegas? I just need to hear what locals are saying, not the media. I also have friends that visited vegas and are telling me I am crazy for moving my family there. I don't worry too much cause I do not let myself get caught up in social problems because I am very focused and grounded. Still I need to know what I am up against real estate wise and neighorhood wise.
Thanks for any advice, Nick