Earlier this month, Pro Teck’s HVF Monthly Market Report focused on Las Vegas, one of our Top 10 metros experiencing limited inventory, fierce bidding wars and increasing price pressure. It’s a far cry from a decade ago, when entire developments were put on hold as the area weathered the financial crisis.
But what’s happening in Vegas is not necessarily staying in Vegas – Nevada’s housing market is facing a lack of inventory crisis on par with the rest of the country. Housing starts that averaged more than 29,000 per year in the nine years leading into the crisis, fell to a low of 4,633 in 2009.
Long Term Impact
Building has picked up since the 2009 low, but 2017 only had 12,832 starts, about half of the pre-crisis average. At the end of 2017, the deficit was almost 139,000 homes.
With this in mind, how long will it take for Nevada’s housing stock to rebound?
In 2004, 37,707 new homes were built in the state. If Nevada could build 38,000 new homes a year on average going forward, historical market needs would be met by 2028. Until then, assume limited single-family stock in the Silver State.
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