Las Vegas recorded the steepest decline in homebuilding permits among the nation's 55 largest metropolitan areas during the first half of 2024, according to a report from UNLV's Lied Center for Real Estate. Residential permits issued in Southern Nevada plunged 35 percent compared to the same six-month period in 2023, while other major metros saw significant gains.
Permits more than doubled in San Jose, California, and nearly doubled in Seattle, the report found. Portland, Salt Lake City, and Denver also posted double-digit increases. By contrast, permits fell 13 percent in Riverside, California, and 4 percent in Phoenix.
Lied Center director Shawn McCoy said development costs such as materials and borrowing rates are likely similar nationwide, but Southern Nevada's market is heavily weighted toward single-family housing tracts. Nearly 85 percent of local permits through June were for single-family units, compared to 56 percent in Portland, 46 percent in Salt Lake City, and 29 percent in Seattle.
McCoy noted that Las Vegas builders have a history of rapidly ramping up when the market is hot and slamming the brakes as it slows. After a pandemic-era surge pushed permits to roughly 15,000 in 2021, rising mortgage rates triggered a 27 percent drop in 2022. Through August of this year, permits were running 25 percent below the same stretch in 2023, according to Home Builders Research.
Sources: Las Vegas Review-Journal
Original reporting: Las Vegas Review-Journal →
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