Of the top 10 list in all communities, town homes held seven of the top spots.ĭiamond Ranch Trails, D.R. The 259 closings of attached homes in June was 20 percent higher than June 2022.Īttached home sales were prevalent again among the top 10 new-home subdivisions recorded during the second quarter. The interest in town homes is only growing among builders and buyers as shown by the latest numbers. “I think it will go even higher given land scarcity, cost increases and the need for more housing.” “It seems like we have reached a new normal,” Smith said. That should help keep the market share elevated for a while, he said. Smith said local governments are working with builders to allow greater density to build more attached projects to deal with affordability. That’s what happened in every metropolitan area in the United States that grew.” You have to keep going with density, density, density. Most of my builders for 2024 have a project on the board for condos in addition to town homes all over the valley. “Most of my builders are even dabbling with condos. Add on higher home prices today driven by land costs and interest rates, and buyers are demanding more attached products, he said. Town homes are homes that are attached, and condos are multiple stories of units stacked on top of each other.Ĭonstruction defect laws were reformed in 2015, giving builders a green light to pursue those projects going forward because there were fewer concerns about lawsuits over attached products, Hodgson said. Nat Hodgson, CEO of the Southern Nevada Home Builders Association, said construction defect laws in place in the 1990s slowed the building of condos and town homes. “For us, it’s a much younger buyer, and they like the more community-oriented neighborhood in which you are sharing everything as opposed to single-family detached people pulling into the garage and staying inside of your house.” ![]() ![]() “Typically, town homes have parks, pools, playgrounds and other amenities that go with it,” McCormick said. To see something at $1 million an acre is not uncommon.”īesides the lower price, McCormick said buyers, especially millennials buying their first home, are attracted to the lifestyle and reduced maintenance costs. “There’s so little of it available that the price is staying high. “The land prices haven’t softened,” McCormick said. Touchstone Living can build 12 to 18 town homes per acre while builders constructing single-family homes average about five homes per acre and eight to 10 per acre in higher-density areas, McCormick said. That makes the land cost per home lower and leads to a lower sales price.” ![]() “Land is so expensive and driving housing unaffordability, but with town homes, you can put more homes on the same amount of land. “It’s about affordability and lifestyle,” McCormick said. That’s up from 5.3 percent in 2015 as cheaper land and lower prices coming out of the Great Recession allowed builders to focus on single-family homes because they could build those for not much more than building a town home, McCormick said. In 20, the market share was 19.8 percent and 19.7 percent, respectively. “I’ve been here since the 1990s, and we’ve never seen it this high.” said Tom McCormick, the founder of Touchstone Living, one of the valley’s leaders in town home projects. ![]() The 23 percent share will mark the highest over the past decade tracked by Home Builders Research, and it’s on track for an all-time record, according to builders. Some 23 percent of new homes sold during the first six months of 2023 were attached, aided by 29.1 percent in May and 25 percent in June. In comparison, there were 1,237 attached homes closed during the first six months, a 6 percent year-over-year increase, according to Las Vegas-based Home Builders Research President Andrew Smith. In new home closings tracked through the first six months of 2023, the 4,106 single-family home closings were down 12 percent through the first six months of 2022. A push to construct two-story condo projects to go even higher in density is expected. Las Vegas set a record in May when 29.1 percent of new-home sales were attached products - primarily town homes - and that trend shows no sign of slowing as builders continue to pursue denser developments.ĭriven by affordability, builders are turning to town homes to capture buyers in a marketplace where higher interest rates over the past year have put more single-family homes out of their price range.
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