Insights from SNHBA CEO Tina Frias on the Housing Market
The Las Vegas Valley new-home market is thriving compared to the national average, and the new CEO of the Southern Nevada Home Builders Association (SNHBA), Tina Frias, is excited to be part of this positive trend.
Frias has been at the helm of the SNHBA for over six months, overseeing a period of growth for Southern Nevada homebuilders despite challenges such as elevated interest rates. The 6,652 net sales in the first half of 2024 represent a 19 percent increase from the previous year, showcasing the resilience of the local housing market amidst a slight decline in new home sales nationally.
In a recent interview with RJ New Homes, Frias shared her perspectives on the current state of the housing market, her role as CEO, and the future plans for the organization and its members.
Builders’ Sentiments and Market Dynamics
Builders in Southern Nevada appear to be optimistic about the new-home market, with over 25 percent of home closings going to new-home buyers. Frias attributes this trend to several factors, including the impact of higher interest rates on existing home inventory and builders’ efforts to lower monthly payments by investing in interest rate buy-downs. These initiatives have enabled more individuals to achieve homeownership, bridging the gap for prospective buyers in the region.
Factors Driving Southern Nevada’s Success
When discussing why Southern Nevada is outperforming the national housing market, Frias points to the region’s evolution as a premier destination. With the addition of major sports stadiums, renowned sports teams, and high-profile events, Southern Nevada has solidified its reputation as a vibrant and desirable place to live. The influx of residents drawn to the area’s amenities and lifestyle offerings has contributed to the robust demand for new homes in the region.
Challenges and Opportunities for Builders
Despite the positive outlook, builders in Southern Nevada face challenges related to rising land costs and labor shortages. The scarcity of developable land has driven prices up, with acreage averaging around $1 million and reaching up to $1.6 million per acre. SNHBA is actively advocating for federal legislation to increase the availability of developable land in Nevada, supporting initiatives like Sen. Catherine Cortez Masto’s proposal for 25,000 acres of new land for homebuilding.
Additionally, the industry is grappling with labor shortages, exacerbated by generational gaps in the workforce. To address this issue, SNHBA is championing initiatives like the Southern Nevada Trades High School to promote careers in the trades and attract young talent to the industry.
Regulatory Considerations and Collaboration
Frias emphasizes the importance of navigating utility and municipal regulations effectively to minimize additional costs for homebuyers. SNHBA is actively engaging with local governments to streamline processes and ensure that regulations align with the industry’s needs while serving the interests of consumers. Building strong relationships with municipalities and promoting collaborative efforts will be crucial in advancing the industry’s goals and addressing regulatory challenges.
Strategic Planning and Community Engagement
Looking ahead, SNHBA is focused on implementing a comprehensive strategic plan to guide its initiatives and enhance collaboration within the organization. By conducting surveys, engaging with members, and seeking feedback from stakeholders, SNHBA aims to align its mission and vision with the needs of the community. Collaboration with partners like Home Aid will further bolster the organization’s efforts in promoting affordable housing and sustainable growth in Southern Nevada.
As Frias reflects on her first six months as CEO, she acknowledges the learning curve of navigating a new industry but remains dedicated to driving positive change. With a strong board and a commitment to community engagement, SNHBA is poised to address key challenges in the housing market and advocate for the interests of Southern Nevadans.
In conclusion, SNHBA’s proactive approach to industry challenges, strategic planning, and community collaboration under Frias’ leadership bode well for the continued success and growth of the Southern Nevada housing market. By addressing issues such as affordability, land availability, and workforce development, the organization is poised to make a meaningful impact on the region’s housing landscape.
