LAS VEGAS (KTNV) — For decades, a home with a spacious backyard has symbolized the American suburban dream. But in Las Vegas, that dream is evolving as developers embrace smaller lots and denser rental communities to address the valley’s housing crisis. The trend is sparking heated debates among residents.
One such debate is unfolding in the northwest valley, where Leslie and Tim Murphy have lived on Ann Road since 1980. Their 5,000-square-foot home sits on a half-acre lot, a stark contrast to a proposed development nearby. An empty three-acre parcel of land near their property is slated to become a tightly packed rental community of 25 homes.
“There’s nothing in the area this dense. The lots are 3,000 to 4,000 square feet. With the house to the fence, it’s just 5 to 7 feet,” said Leslie Murphy.
The couple fears the project could significantly lower their property value.
The Las Vegas Planning Commission tentatively approved the project in October, with final approval expected from the City Council on Dec. 18. Despite their concerns, developers argue that such projects are essential to tackling the region’s growing housing needs.
“When they are just taking properties and chopping them down, they’re a business,” Murphy said. “They’re not worried about what people can afford.”
WATCH OUR PREVIOUS COVERAGE ON THIS ISSUE: Experts break down the housing crisis in our community. What are the glaring issues?
David Lee, a local investor with Painted Desert Realty, counters that denser housing developments are a necessary solution to the valley’s affordable housing crisis. Lee recently purchased a half-acre property in North Las Vegas with plans to build six rental units.
“Affordable housing is a huge crisis across the nation. In two years, we’re going to see a big jump, and unless we start now, it’s just going to get worse,” Lee said.
Responding to criticism that developers prioritize profit over community concerns, Lee added, “I understand if they didn’t want me to put six back here. That’s when I’d say, ‘Start somewhere. Allow two or one."
The builder of the northwest valley rental community, AMH Corporation, faced stiff opposition from neighbors, collecting over 286 petitions against the project. In response, AMH made some concessions, including reducing the lot count to 25 units and incorporating single-story homes on some lots. In a letter to residents, the company wrote, “The land is the most valuable thing.”
Economists point to broader economic forces driving this trend. Stephen Miller, a professor of economics at UNLV, says rising home prices and a limited housing supply are pushing developers toward smaller, denser projects.
“Developers are using their pencils appropriately to calculate what their return is. Is that greedy? Well, that’s called capitalism,” Miller said.
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Miller also highlighted another factor exacerbating the housing shortage: homeowners with low-interest mortgages are reluctant to sell.
“A lot of people have home mortgages at low interest rates, so they’re reluctant to sell their homes and move because they’d have to give up that really good mortgage rate,” Miller explained.
As housing prices and rents continue to climb, the debate over how best to address the valley’s housing needs remains heated. The outcome of projects like these could shape the future of Las Vegas neighborhoods for years to come.
