$111 million in taxes and revenue for state, local and federal governments ... Nevada had 43 builders pre- recession and
BUILDING IN 2018
Three Pillars of Engagement
What is BANN?
1. Advocacy 2. Education 3. Networking
Because, numbers and stuff Year
Single-Family Permits
Multi-Family Permits (Units)
1985
4,022
n/a
1987
2,278
n/a
1994
2,812
652
1998
3,113
912
2001
3,845
1483
2005
5,318
1,172
2010
471
134
2013
1,228
475
2015
2,010
781
2016
1,988
1,131
2017
2,133
2,974
NAHB analysis of new construction shows that building 1,000 average single-family homes generates: • 2,970 full-time jobs
Are we addicted to growth?
• $162 million in wages
• $118 million in business income • $111 million in taxes and revenue for state, local and federal governments
Annually recurring impacts of building 100 single-family homes in a typical local area include: $4.1 million in local income
$1.0 million in taxes and other revenue for local governments 69 local jobs
The estimated one-year impacts of building 100 rental apartments in a typical local area include:
Multi-Family Numbers
• $11.7 million in local income • $2.2 million in taxes and other revenue for local governments • 161 local jobs
Annually recurring impacts of building 100 rental apartments in a typical local area include • $2.6 million in local income • $503,000 in taxes and other revenue for local governments • 44 local jobs.
2018, You are so complicated • Boomers are off their rocker – Seriously, they are • Millennials want everything….and nothing • California is the gift/curse that keeps giving • Rising interest rates • Huge increases in regulation, labor, and materials • Figuring out what we want to be when we grow up
Supply, obviously
From the Builder
What is causing the demand? Builders respond to demand, they don’t create it What is holding us back from meeting demand? Mixed messages
So you want to build a house... Concept – Completion • So many maps • Permit • Bids • Sticks in the air • Inspections • Labor • Closed/Sale
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16 communities closed in last year
28 communities expected to start in 2018
Northern Nevada had 43 builders prerecession and now has 24
In 2001 there were 76 active communities, 2017 had 64
The national new home shortage is over 75,000
2016 $120 million bought 3,030 acres vs. 2017 $142 million bought 1,544 acres
Random Facts
Land Transactions by ArchCrest Partners
2017
2016
27 Deals
29 Deals
7,032 Lots
7,514 Lots
1,544 Acres
3,030 Acres
$142 Million
$120 Million Multi-Family: 3,530 units, 193 acres, $50 million
Residential Land Land as a % of Base House Price by ArchCrest Partners
Base House Price Total Hard Cost Total Soft Costs Finished Lot Cost Builder Profit
2010 $180,000 ($100/sf) $99,000 ($55/sf) $36,000 $27,000 $18,000 15%
Percentage of House Price Median Household $50,839 Income
2016 $315,000 ($175/sf) $129,600 ($72/sf) $63,000 (20%) $90,900 $31,500 (10%) 28.9%
2017 $350,000 ($194/sf) $144,000 ($80/sf) $77,000 (22%) $101,640 $27,360 (8%) 29%
$54,955
$56,382
Fees/costs single family detached, Spanish Springs vs. Carson City 1 acre lot*
1/3 ac lot^
Carson City
7000 s/f lot
Plan check fee - lot
$
250.00
$
250.00
Plan check fee - lot
$
112.00
County insp fee
$
250.00
$
250.00
County insp fee
$
-
TMWA fees
$ 1,754.00
$ 1,322.00
TMWA fees
$
-
Water Service fee
$ 9,952.00
$ 10,184.00
Water Service fee
$ 1,648.00
Sparks Sewer fee
$ 5,618.00
$ 5,618.00
Carson Sewer fee
$ 2,143.00
Water Rights fee
$ 6,287.00
$ 4,540.00
Water Rights fee
$
NDEP/Stormwater/Dust NVE/At and t WC Sewer/stormwater
$260 $ 1,560.00 $4,000 $ 2,800.00 $ 5,450.00
$ 5,450.00
-
NDEP/Stormwater/Dust
$250
NVE/At and t WC Sewer/stormwater
$2,528 $
-
Park Fee
$1,000 $ 1,000.00
Park Fee
$1,000
Building Permit (ave)
$2,500 $ 2,200.00
Building Permit (ave)
$5,000
RTC
*83 single lot, one acre subdivision ^24 1/3 acre lot subdivision
$ 3,922.00
$ 3,922.00
$ 41,243.00
$ 39,096.00
RTC
$
200.00
$ 12,881.00
$1,000 added to a mortgage Location
Median New Home Price
Income Needed to Qualify
Qualified Households
Households Priced Out
Reno Metro
$305,191
$69,699
108,472
348
Carson City
$353,658
$82,602
24,246
26
Vegas Metro
$184,718
$42,591
750,737
1,703
Total Priced Out
2,077
