Explanation for high cost of Northern Nevada homes
Our area's housing crisis continues as we’re seeing the prices of Northern Nevada homes going up. Mark Krueger, with a local brokerage, talks about the main reasons why our area is the most expensive to build homes.
Recent studies show Reno is one of the fastest growing working populations in the country, but many locals are concerned with the consequences of our housing crisis.
"The cost to build a home in Reno, is among the highest in the country."
Unemployment is at an all-time low, but the cost of new single family homes is just the opposite.
Mark Krueger, with ArchCrest Commercial Partners says, with the average income many families are making, buying a home is often not attainable.
"We are working off of a 60 to 70 thousand dollar median household income that family can afford a home in the 300's and it is difficult to find a home in the 300's."
Krueger says, the high cost of new homes is due to not having enough subcontractors and suppliers to handle the demand of our market. He tells me land prices have skyrocketed so much that it may be cheaper to build a home in Southern California.
"The pricing has been pushed in this market, from a smaller secondary market to the cost of very expensive communities."
Krueger claims the low amount of subcontractors and trade is not enough to meet the need for affordable housing, which gives contractors the power to dictate building prices, and in result, it raises the cost of homes.
He says we are growing, but we are still small compared to other larger markets. Therefore, many contractors haven't completely put all of their eggs in the Reno market basket.
"Because we did tumble once before they are reluctant to making investments here.”
For now, Krueger says his only advice to find affordable homes for the time being is to consider going into more rural areas or downsizing your living space.
Krueger mentioned another major factor as to why many are struggling to afford homes is that a lot of our wages don't match the high cost of living.
The full article by Abel Garcia, including video, can be found here.