In the calendar year of 2021 condos, townhomes and high-rise properties accounted for accounted for 23.1% of residential sales inside the Las Vegas valley. Single family residences appreciated at a rate of 24,6% over the last year. Condos at a rate of 33.5%, townhomes at 30.2% and high-rise properties at 7.3%.
Condo and townhome construction has been minimal since around 2002. At that time, most of the local condo/townhome developments had been subject to construction defect litigation. This made it difficult for builders to secure insurance to protect them against litigation, hence very few projects were built subsequently. Factor in the economic difficulties of 2008 forward and the supply of new condos did not keep up the demand, especially the demand exhibited in 2021. There are now a number of active projects.
High-rise developments, units, have their own history. From roughly 2000 to 2008 there was massive construction. It all came to an end in 2008. Nothing has been proposed or built since, till now. The first new project is now underway. Is is called “The Pinnacle” and will be built in MacDonald Highlands in Henderson. Reservations are brisk, but the starting price will be over 1.5 million. I am told that new high-rise construction needs to sell at at least $700.00 per square foot, to be profitable. The average per square foot price of units sold in 2021 was $571.
