Condos behind Las Vegas Growth

Some 467 new home subdivisions are being built in Las Vegas which is a record. Sales of new and existing homes also saw a steady growth and more than 100,000 units exchanged hands last year. Most of the top 10 best selling subdivisions all turned out to be condo conversions.

The days of amazing double digits growth of 30-40 percent are over for the present. Things are expected to be more and homes prices are expected to grow at a more sedate 6-8 percent this year. The median price of a new home 2005 stood at $313,372 which is just 6.8 percent above last year's price. A major reason for this is the condo conversion which brought down the median prices considerably and offered a lower price entry home for first time home buyers.

Majority of of the condo conversions will be completed this year and apartment investing will again go up as rents creep higher due to the fewer apartments available for rent. A majority of developers do not favor the councils plans to put a break on condo conversions as they this affordable housing option a stepping stone for greater things for the housing industry. They feel the condo conversions have actually created a lower thresold for first time home buyers. By stopping this many people will never be able to afford to buy a home in their life times. Also, only when homebuyers buy their first home can they build equity to be used to buy move-up home. By breaking this vital link a whole group of homebuyers will be permanently banished from the homebuyer's market.

Council Mulling Condo Ordinance

Las Vegas condo conversion craze has left the renters dazed. The dwindling supply of rental apartments have left out-of-towners, young singles and other renters with very few options. They have to either pay higher rents for the fewer apartments left or leave Las Vegas for other cities. A tough choice indeed.

In a bid to curb the runaway condo conversion that is eating into apartment market council officals are seeking to get broader powers through an ordinance that will block the conversion of atleast of some of the rental properties. Sweeping aside the objections from condo developers and apartment complex owners the Planning Commission has recommended the passage of the ordinance.

The new powers gained through the ordinance will give the council the right to reject conversions they feel are detrimental to the community. The special use permit adds another layer of complexity which means more work for the council officials. But they are viewing this new strategy as a way preserving rental homes for those who can't to buy a home.

High-rises come tumbling down

ICON is the latest high-rise to bite the bullet. Ivana Las Vegas also suffered the same fate recently. So what is reason behind the demise of these high rises?

Experts say the developers under-estimated the cost of building these high rises. Second was the increasing construction costs after Hurricane Katrina lashed New Orleans has many projects unviable. Third there are not enough to build all the proposed high rises in Las Vegas.

Many experts had predicted that only a few of the proposed high-rise projects would be completed. During the Condo boom phase every person worth his name wanted to cash in on the craze and announced high-rise condo projects. Without any knowledge of the condo business, the construction industry and real estate market many celebrities and others got involved in projects which were never financilly viable.

As market reality set in those projects without a strong financial backing are falling by the wayside.