Yesterday’s Las Vegas Review Journal featured an item on communities that stopped or scaled back development partway through, resulting in “stranded” homeowners who must contend with abandoned construction sites, fewer businesses and services nearby than they expected, and property values damaged as a result. This isn’t just happening in isolated subdivisions, it’s happening in huge master-planned communities as well. The article is well worth reading.

While I have colleagues who specialize in helping people purchase new construction, I rarely touch it. First, there are almost always construction delays with new construction. Second, even without problems like the article describes, there is no guaranty that the community as built out will really be as promised. Too many things can happen both inside and outside the community itself between the day you pick your vacant lot and the day you move in. Third, it is easy for buyers to forget that the nice salesperson in the builder’s office works for the builder, and is paid to put his or her employer’s interests ahead of the buyer’s interests. Finally, there are complicating factors in financing new construction. Of course, you can use the on-site financing from the builder, but that may not be the best option.

If you are considering buying new construction home, this checklist is a very good start. You will also want to consider other factors: Is the area acceptable now? What if certain improvements were delayed or cancelled? What if the plans change and more dense housing (smaller lots, more condos or apartments) is built nearby? Do any of the plans depend on government action, such as building new roads and schools? What if those plans fall through? How many other people have already committed to purchasing homes in the community? How many of those people are investors rather than future neighbors?

People will have different reactions to the answers, and there is nothing right or wrong about any one person’s decision. However, it is important to ask and truly think about the answers before investing in new construction.

As a real estate professional, I just don’t understand why some people hate apartments. Frankly, any argument you can make against apartment life can just as easily be leveled at condominium life. Complaints about “noisy neighbors on the other side of the wall” and “lousy parking” come to mind.

Furthermore,  the management team of a large apartment community has a vested interest in the continued good condition and good reputation of their property even more than the typical small-scale landlord does.   Do you know who owns the rent house on the next block from you?  No?  But I bet if you look carefully at the sign in front of the apartment complex down the street, the management company’s name is on it.

Many of the “problems” associated with apartments are actually caused by zoning too many units in relatively small acreage: notably traffic issues and neighborhood decline. The impact of putting thousands of families in a couple dozen acres on traffic may be obvious.  The impact on the neighborhood at large, less so.  What happens is that no matter how many families actually need rental housing in a major city, the odds of them actually having jobs or another need to be in or near the “zoned apartment ghetto” is actually pretty small.  The obvious result is too much supply and for existing demand.  This drives occupancy and landlord revenues down from what the investors were promised, and nobody wants the investors to be angry. As a result, Jane Manager gets orders from her supervisor at the management company to fill those units at any cost!  And so Jane rents to people she maybe shouldn’t, who in turn run off her “good” residents.  Maybe she reduces rent, which in turn reduces the amount of money she has for repairs (and make-ready of vacant units), eventually meaning her property is skimping on maintenance.  The cycle continues around the neighboring apartment communities, because Mary Manager and Suzie Manager and Joe Manager are all getting the same orders to fill those units.

While cities that do not have “zoned apartment ghettoes” may have a bad complex with bad management somewhere, they don’t have a dozen of them all crammed next to one another, feeding on the toxic feedback loop of their neighborhood.  Apartments spread strategically through a city creates an environment where people who want or need rental housing can find it in a variety of neighborhoods near the places they want or need to be.  In short, cities that zone intelligently have a chance at having good, well-managed apartment complexes filled with decent, hard-working people who for whatever reason choose not to own real estate.  Such complexes can and do co-exist well with quality housing and a vibrant business community.

And that brings me to today’s City Council meeting in the City of North Las Vegas.  Way back in 1988, the city agreed to let Pardee Homes build a mixed development including single family homes and an apartment complex in what was then the middle of nowhere. Now, they are being held to that agreement and forced to sign off on allowing a 340 unit apartment complex to be built on a 15 acre site in the middle of a neighborhood dominated by single family homes.

And the neighbors are spitting mad.

I don’t get it.

Granted, that’s 23 units per acre.  According to the Clark County website, “Maximum densities allowed in most districts range from 18 to 50 dwelling units per acre, though more density is allowed in the district that includes the Strip.”  So by Vegas standards, 23 units per acre isn’t such a big deal.  I know from experience you can have a very nice 200 unit complex of 2 story buildings on roughly 6 acres, so theoretically a clever planner could fit 500 units on 15 acres and never have a third floor unit! We aren’t talking about a “zoned apartment ghetto” here;  we are talking about one complex on more than enough land, in a rapidly growing area minutes away from a retail hub and a brand new hospital.

This area needs rental housing, badly, and somebody realized that back in 1988, even if they can’t see it now.

We do love our Master Planned Communities here in Vegas.

Out on the West side of town, you’ll find Summerlin.  Summerlin has been around for some years, but parts are still under construction.  In fact, this weekend some of the builders are having what is billed as America’s Biggest Open House (warning, inline sound until it loads).  There will be 75 model homes in 19 neighborhoods built by 12 builders.   If you would rather look at these homes from the privacy of your own home, there’s a virtual tour option at the bottom of the page.  Interesting fact:  Summerlin is named after Howard Hughes’s Grandmother!

Down in Henderson — the Southeast end of town — we have Anthem.  Also with new construction still underway, it is in a rapidly growing area of town.  It has the advantage of being relatively near the airport.

Still in the South part of town, we have Mountain’s Edge.  In addition to providing housing to thousands of families (at a profit, of course), and putting thousands of tradesmen to work building that housing, they actually have environmental and philanthropic goals. Oh, and they are the #1 selling master planned community in the country for 2007.

Of course, #5 on that same list is Providence, a very new community on the Northwest side.  I have discussed Providence before, and you can read it here.

Oops! I almost forgot Alliante, on our North side.  Over 20% of their acreage is dedicated to public and recreational use.  That includes 24 miles of concrete trails and yet another championship-quality golf course.  Vegas is big on golf.

If you would like expert assistance finding a new or resale home in any of these great communities — or anywhere else in the Las Vegas Valley — be sure to call me or click the “Contact Me!” link in the side column.

I am proud to announce that I will be on hand at the United Studios of Self-Defense Desert Shores Dojo for a networking open house on Friday, February 29 from 6-8 PM. The dojo is at 8410 W. Cheyenne, Suite #104, near the intersection of Rampart/Durango and Cheyenne in the Albertsons parking lot.

I will be on hand to answer your questions about the Las Vegas real estate market, real estate in general, local neighborhoods, and of course I will be glad to discuss helping you buy or sell a home. If you have specific issues you want to discuss with me, don’t wait: call me at 702-727-7842 today! If you would like to search listings first, click here!

Other businesses will be on hand to discuss their products and services as well. For more information, a list of businesses that will be there, or to reserve room for your business, be sure to call 702-396-9944 and talk to Miss Teri or Sensei Bryan today!

The other day, I promised I would tell you a bit about a new Master Planned Community that I visited. It’s called Providence. When complete, it will have 7000 homes, 2 elementary schools (the first to open in 2009), one junior high, one police and fire station, and 2 parks. There are 15 different builders involved.

Because of the number of developments and builders involved, there are many different floorplans, and a wide range of prices. I personally toured single family homes with a base price under $200,000, and some that came in well over $500,000 too. It looks like there may be some condo developments in the community as well.

They have made a concerted effort to create a nostalgic, friendly, feel. There is a tree-lined promenade through the middle of the community. Several floorplans I saw included front patios (in addition to the private, rear decks currently favored). One development even has a “million dollar clubhouse” with 3 pools, exercise center, and regular resident events. Pretty impressive considering that much of the area is a construction site! Single-story floorplans are available, which is frankly remarkable for local new construction that does not have age restrictions.

The area has a magnificent view of the Strip and the mountains. A new hospital is under construction nearby. There has been a lot of development within a few miles over the last 5 years.

The downside is that the community just North of the Northwest corner of the 215 Loop. That means it’s relatively remote from central areas of Las Vegas. Yes, you can be at a shopping center in five minutes, but that includes getting on the freeway. Because things are under construction, there is uncertainty about issues such as future growth and development, traffic flow, local business, and school quality.

However, if you are looking for affordable housing in Vegas, and don’t mind a little driving, there are sections of Providence worth considering.  If you want more information — free and with no obligation — about the various developments in Providence, or want to schedule a tour, just click the “Contact Me!” link at the side of this page.