Home prices are up 27% year-over-year in Southern Nevada to a record high $460,000, but demand for new home construction isn’t slowing. High demand throughout the COVID-19 pandemic is spilling over into the 2022 housing market despite a new set of financial challenges for prospective buyers. Supply chain hurdles are still delaying some residential projects, but building permits in the Las Vegas Valley are rising at an unprecedented rate, the Las Vegas Sun reports.
Nevada builders are ramping up the pace of new home construction to satisfy elevated demand, though obstacles seem to be mounting as materials prices reach new highs and a persisting labor shortage puts added pressure on an already inundated workforce.
As millions of Southern California residents are expected to continue to seek refuge in Nevada from even higher housing prices in the Golden State in the coming years, it seems improbable that demand within the Southern Nevada housing market will wane at all.
Add to that the fact that the economic effects of the pandemic did almost nothing to quell demand, and that herds of millennials are ready and willing to enter the housing market, and it would seem that the Las Vegas Valley will have a complicated problem on its hands for some time.