Lag in housing construction adds to demand in Nevada, expert says
National trend sees growth in ‘multigenerational homes’
LAS VEGAS (KLAS) – Moving to Nevada has a lot of benefits.
For working people, there’s no state income tax. For retirees, no state taxes on 401Ks, IRAs and pensions.
These are big reasons we have seen an influx of people to Nevada, and why real estate values on the Nevada side of Lake Tahoe are growing a lot faster than the California side these days.
We caught up with an expert about the latest trends among millennials and others who are looking to buy in Nevada and elsewhere.
“A lot of sellers in California are moving. They don’t want to be there anymore,” according to Polina Ryshakov, senior director of research for sundae.com.
Her company advertises houses for sale to the highest bidder. In many cases, those buyers are investors.
Ryshakov monitors trends all across the country.
“What’s different now, we’ve been under-building for such a long time. If you look at averages, compared to population growth, we built about half the homes that we were supposed to build to keep up with population,” she said.
Housing construction has lagged since the Great Recession.
In the years leading up to 2007, there was more home construction than there was demand. Low interest rates, easy credit and toxic subprime mortgages led to a housing bubble and a financial crisis.
Now, we’ve got buyer demand but not enough new homes.
With low inventory levels, we haven’t kept up with millennials coming of age and buying their own homes, Ryshakov says. And this will also affect GenZ buyers.
Since the Great Recession, there has been an uptick in the building of multigenerational homes. Currently, more than 50 million Americans live with at least three generations of family members under one roof.
“The baby boomers can help kids buy that first home,” Ryshakov said. “They can give down payment money … you can see that in some of the reporting as well.”
And while multifamily units grew nationally over the past decade, a new report out today shows they did not follow the same trend in Las Vegas. They were down about 26% between 2020 and 2021.