FAQ’s Regarding the High Rise Condo Boom in Las Vegas

Below are answers to frequently asked questions that we receive at REMAX Associates. If you have a question that is not listed here, please email us or call (702) 858-7777.

Q: Will vertical living in Las Vegas really become the standard of living?

A: It appears that way. The popularity and demand for the quickly growing concept of high rise living does not seem to be slowing down. High rises take up much less land and are even better for the environment, because they cut down on things such as water use. There was an excerpt in the Las Vegas Sun that stated, “What started as a trickle of proposed high rise projects has quickly turned into a flood as land owners and developers think of ways to cash in on the latest Las Vegas building boom.”

The Clark County Commission has approved quite a few high rise projects thus far. It is obvious that every project approved will not necessarily break ground, which is why choosing the right investment or place to live within this explosion of towers, is crucial.

When people wonder how this high rise craze will last, they should look to other cities that ended up in the same exact direction in which Las Vegas now headed. Similar metropolitan cities like Chicago, New York, Downtown San Diego, and San Francisco, have all built up toward the sky, and as we all know, these types of traceable trends definitely repeat themselves.

Q: With there being so many mid and high- rise options available, which area of town do I purchase in and why?

A:Since there are several different projects going up in Vegas, it only makes sense that much like single family residences, town homes, and master-planned communities, each area of town has its individual pros and cons. For example, one choice location is the world famous Las Vegas Strip. This is a desirable place for obvious reasons! When people think of Vegas, they think of The Strip! The central area of Las Vegas Blvd is an ideal spot for the new product labeled the “condo-hotel”. With names like Hilton and Trump backing this fairly new edition to the high-rise frenzy, condo-hotels seem to fit perfectly with the want and need that most outsiders commonly possess: wanting to be within walking distance or even directly on the Las Vegas Strip.  

On the other hand, Las Vegas has several other emerging areas as well. The region of town known as downtown LV seems to be repeating history as it is going though an immense renaissance, and in turn, is emerging into a major metropolitan city in itself.  Downtown is taking on a process that has been labeled everything from “a much anticipated transformation” to a “Manhattanization”, and which ever one you chose to call it, this area of town is booming! There are a projected 15-20 high density, high rise projects panned to go up within the limits that define Las Vegas’ downtown region. With the addition of various new economies, such as The World Market Center, which will be the largest home furnishing and design center in the West, quite possibly the country. The project is said to stimulate a reported 35,000 job opportunities and increase Vegas’ economy by $1.5 billion dollars! Also, the 61 acre piece of government owned land downtown that was recently subbed out to New York and Florida’s well known developer, The Related Group, is being set to encompass a city park, Alzheimer’s Medical Research Center, a possible baseball stadium, a performing arts center, as well as several mixed-use residential projects. The surrounding Entertainment, Casino, and Arts districts are expanding and moving toward the whole “live, work, eat, play” concept too.

Las Vegas Blvd South, along with southwest and west areas of Las Vegas are also attracting high rise living. These places are appealing to those who simply do not want to among the city lights of the Las Vegas central and downtown Strips. These locations boast easy freeway access, close airport proximity, as well as more of an age-targeted buyer or suburb feel. 

Vegas’ going vertical appears to be happening overnight, therefore it is no wonder this high rise explosion is not only in demand, but has accommodations and living standards for people of all ages, wants, and needs.

Q: What do mean when you say that Las Vegas is going through a “Manhattanization” process?

A: There are various factors that are definitely contributing to Las Vegas going through the same process in which Manhattan, New York did just before the turn of the 20th Century, in other words, Vegas is becoming “Manhattanized”. The following characteristics put the changes that Las Vegas is experiencing into perspective with what has already transpired in New York:

Manhattan had a shortage of land that was affordable enough to construct single- family homes.

Manhattan, much like Las Vegas, started to become assimilated with entertainment, fine dining, shopping, and excitement.

High-rise projects and buildings began to emerge, and then eventually “Sky-Scrapers” developed.

Manhattan had a huge economic expansion, including a vast amount of job growth, retail and tourist attraction, and finally residential interest from all over the world.

Q: What issues regarding land and land availability are contributing the high-rise frenzy?

A: For the past 17 years, Nevada has reined as the fastest growing state in America. Las Vegas is, without a doubt, the reasoning for this giant expansion. Here in Las Vegas we develop anywhere from 4,000 to 7,000 acres every year, and because BLM (The Bureau of Land Management) owns nearly 90% of the land in Nevada, there is no logical way in which this amount of developing can possibly continue. BLM does release acres of land from time to time, but unless they are planning to allow developers and builders to use mass quantities from here on out, Las Vegas has no other choice than to go vertical.

Even if this large release of land options were to occur, unfortunately, the prices of land have raised quite considerably. Four years ago, land could have been purchased for $65,000- $85,000 per and acre, whereas now it has increased into the hundreds of thousand of dollars per an acre.  

Lot sizes have also decreased. Currently the average size of a lot for a home here in Vegas is around 5,000 square feet. This is a huge difference compared to the average 6,000 square foot lot just a year ago.

Nevada, coincidentally, also contains three of the fastest growing cities in the entire country. Las Vegas, Henderson, and North Las Vegas are each expanding rapidly and have the advantage of being right in the middle of a complete real estate boom!

Q: What economic facets are fueling the enormous amount of growth and expansion in which Las Vegas is currently encountering?

A: There are several factors that have been and are still crucial in making Las Vegas, along with its neighboring areas, some of the fastest growing cities in the country. For one, during the year 2001, Las Vegas was the one single city that possessed positive job growth. Because of 9-11, America went through many huge changes, and a decrease in job availabilities was one of those key changes. Vegas also experienced a portion of this job drought, losing 15,000 in the midst of 9-11. However, unlike most places, Vegas was able to replace those job slots within only 60 days after their disappearance.

 Another economic reason as to why Las Vegas is changing and growing at such a rapid rate, is the fact that Vegas plays such an enormous role in our country’s job growth and job opportunities. Since 1983, Las Vegas has not been in less than forth place within the category of job growth. Better yet, it has been the leading city in the nation eight times within the last ten years.  

Nevada’s state demographer has stated that he expects Las Vegas to break the 2 million population mark as soon as 2007-2008. In 1997 Vegas surpassed 1 million people, and there doesn’t seem to be much a chance for the city to stop its vast expansion any time soon.

The Clark County School System has helped to supply Vegas’ growth as well. It jumped from the 12th to the 5th biggest school system in the entire country within the last few years alone. The very well-known McCarran Airport is yet another component within this busy city that continues to develop and expand. Now being the 6th busiest airport in the nation, it’s quite obvious that tourism is a massive economic cause for Las Vegas’ amazing growth. The metropolis attracted over 18 million out-of-towners during the first few months of 2004!

The Vegas valley’s convention business has reached all time records, generating more than 5.5 billion people who attended various convention functions in 2003. The average rate for a hotel room has increased dramatically, having been reported at an average of just less than $100.00 per a night as of June 2004. There are thousands of hotel rooms that are being added to the Strip and Vegas’ occupancy rate is only increasing! This gust of visitors, once again, only adds to the amount of job opportunities available to those living here in Las Vegas.

As most know, there was a definite increase in the median price point of a single family home in Las Vegas within the last year. The average sales price of a home today is an unbelievable $292,000! This was said to have been the largest leap that the National Association of Realtors had seen since 1982.

There are still future plans for the valley being made each and every day. From Triple 5 Nevada’s forthcoming mall, to the infamous home furnishing and design center, The World Market Center, Las Vegas now has more factors driving its economy than ever before!

Q: What demographics are backing the strong demand for high rise living?

A: While many still agree that Las Vegas, once again, is primarily dependent on its job market, there are new demographic aspects coming into light. First off, take the “baby-boomers”. Because we all know that they will inherit or already possess a large amount of wealth, what they decide to do with their money will make a significant difference to us all. It is logical to say that these “baby-boomers” are now becoming “empty-nesters”, meaning that their children are grown and they are free to live their lives as they so choose. For most this life-style would appear to include, less maintenance, hustle, bustle, and traffic, as well as easy access to and from shopping, eating, entertainment, etc, basically an “all inclusive” way of living. High-rises cover each and every one of these needs. There are no yards or upkeep, less traffic, and amenities at one’s fingertips. A person pretty much has everything that they need in order be to be content within an arm’s reach.  

This demographic, along with the growing demand for a second home market here in Las Vegas, are probably the two strongest characteristics driving Vegas’ going vertical. The weather is notable, with little humidity and mild winters, and the tax situation is desired by all. A recent impact study deciphered that of the homes purchased during the third quarter of 2004, nearly 10% of those were second homes.