A new study by the policy research firm ECOnorthwest has unearthed approximately 10,000 acres of prime land suitable for residential and commercial development in Southern Nevada, amidst an escalating housing crisis.
In total, the study identified 31,650 tax lots covering 78,285 undeveloped or underutilized acres in the region, highlighting a significant opportunity for land development.
However, of these 78,285 acres, a substantial portion, 23,480 acres, is under federal ownership or control, complicating potential development efforts.
Nicholas Irwin, research director of UNLV’s Lied Center for Real Estate, emphasized the critical issue of accurately identifying available land, its ownership, and developability as major barriers in solving the valley’s housing crisis.
According to a recent report by Applied Analysis, the valley may face a shortage of developable land within seven years if current trends continue.
Irwin pointed out that the ECOnorthwest study sheds light on the less understood aspects of land availability and the pressing need to gather accurate data.
However, he noted that navigating the various government databases can be challenging, as many offices, including the Secretary of State’s office, do not freely share information regarding land use and ownership.
Clark County has previously reported that an overwhelming 88 percent of its land is federally owned, with the Bureau of Land Management (BLM) managing over half.
The BLM’s Southern Nevada district has custody of approximately 2.6 million acres in Clark County alone.
Despite the Southern Nevada Public Land Management Act’s passage in 1998 aimed at releasing federally controlled land for development, only about 17,519 acres have been made available since, while federal control has actually increased in the state.
Currently, Southern Nevada is in the grips of a housing crisis, with home prices hovering just below record highs and a surplus of resale homes entering the market without buyers available.
Constrained by high mortgage rates and a stagnant supply of new homes, coupled with rising construction and labor costs, homebuilders are feeling acute pressure.
Home prices have surged, virtually doubling since the onset of the pandemic, prompting Maurice Page, director of the Nevada Housing Coalition, to describe the situation as a “pivotal” moment in addressing the region’s housing needs.
Multiple studies highlight a critical shortage of affordable housing, with the number of required affordable rental homes for low-wage workers continuing to climb over recent years.
According to Page, despite the 78,000 acres of vacant or underutilized land that represent substantial opportunities for urban infill and redevelopment, the valley still faces a deficit of at least 78,000 affordable rental homes for low-income residents.
Moreover, he indicated that the income required to afford a typical mortgage has skyrocketed from $54,000 in 2020 to nearly $120,000 today.
These land constraints are particularly burdening low-income families, as the average cost of homes in the Las Vegas Valley has more than doubled since pre-pandemic levels in 2019, while wages have failed to keep pace.
Page is advocating for new incentives and infrastructure investments to better utilize existing land and accommodate the housing needs of all Southern Nevadans.
The findings of the ECOnorthwest study illustrate a critical crossroads for Southern Nevada, emphasizing the necessity for actionable strategies to unlock land for housing development.
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