LAS VEGAS (KLAS) — One Las Vegas valley homebuilder said he believes new home demand in the area is forcing buyers to new construction projects.
Kent Lay, who works with the homebuilder developing a new 92-lot neighborhood called Ashland at Summerlin Village, said that high-interest rates had not deterred buyers and that the supply of used homes in the area is relatively low.
“It’s forcing buyers to go to the new home market to fill the void,” Lay said.
An Axios report in July indicated that new and existing home prices had converged in the US. According to the report, for the last decade, new homes have averaged approximately $60,000 more expensive than existing homes. That differential had fallen to less than $15,000 according to the May data.
The 25-acre development near Red Rock Canyon is planned to host 92 single-family homes.
The average used home in the 89138 zip code sits at $707,936, according to Zillow data. That’s down 6.6% from the year before.
The pricing of the new homes has yet to be cemented, however, construction is slated for 2025.
Some residents who live in the nearby vicinity of the new construction said they don’t mind the new development, even if it is causing some trails to close. Summerlin resident Seth Yoder, unfazed, said there’s plenty of room to go around.
“We’re in the desert,” Yoder said. “There’s plenty of trails everywhere.”
According to a report from Zillow, rentals in the area remain expensive. The report indicates the median rent price for the same area is $2,995 per month. That price is up nearly $100 from 2022’s average and nearly 50% more expensive than the national median rental price.
