Home construction in Las Vegas valley not keeping up with population growth, prices rising

LAS VEGAS (KTNV) - A new report is giving us insight on why home prices in the valley continue to rise. According to real estate website Trulia, home construction is not keeping up with the rising population.  

Here in the Las Vegas valley, the population has grown more than 10 percent between the 2012 recession and 2017. Home values have appreciated more than 114 percent between 2012 and 2018.  

The experts say the demand for new houses is back to pre-recession levels. Las Vegas is booming! 

The Browning family just moved in to their new home. With 4 kids between them, Jason and Sara needed a big place in a great location. 

"Between the Costco and the Raiders practice stadium, I have a feeling this is going to be a good area."

Vice President of American West Homes Daniel Welsh says the demand for new homes has reached epic proportions. This Las Vegas company has 10 new developments that now have wait lists.

"We are behind the 8-ball in building homes for these families that are coming. Families are still coming in droves. You have Raiders, Knights, casinos. So the amount of people coming here who want to take advantage of what's happening in Las Vegas is exciting."

The demand is driving up prices. The Brownings' home is already worth more.

"Within four months it had gone up $30,000 since we put our earnest money down."

That kind of increase has some people wondering if the bubble is going to burst again.

But Welsh doesn't think that will happen again. He says this boom is different with fewer investors buying homes and more families like the Brownings. He also says banks have learned from past mistakes.

"We aren't seeing no income, no asset, we'll take your word for that. And we are ok with that as a builder. Because we want you to live in the home."

Daniel Welsh says the 1 October tragedy has prompted more people to buy a home. He was born and raised here and says the way we responded to that horrible night helped build community pride and people who weren't buying before suddenly want to put roots down in Las Vegas.

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