How Much Does it Cost to Build a House in North Las Vegas?

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North Las Vegas is situated in Clark County, Nevada. The suburb is the fourth largest city in the state and is located in the Mojave Desert. Due to its position, it has a desert climate, which is composed of mild winters and harsh summers. Much like its neighbor, Las Vegas, there are similar attractions that offer various kinds of entertainment, like the Galaxy Theatres Cannery, Jerry’s Nugget Casino, Nicholas J. Horn Theater, and the CSN Planetarium. The city also holds a few trails and outdoor activity areas such as the Craig Ranch National Park, the Aliante Nature Discovery Park, and the Upper Las Vegas Wash Trail.

Historically, the local market of North Las Vegas has been dominated by manufacturing, industrial, and warehouse distribution companies. Recently, however, more technology businesses such as solar and green technology have been choosing the city for their facilities. Well-known brands and companies have also established locations in North Las Vegas, such as Amazon and Sephora. When it comes to amenities, North Las Vegas does not fall short of other bigger cities. For example, the 2022 Trust for Public Land (TPL) ParkScore index has ranked the city as the 54th city with the best park system, with around 62% of its residents living within a 10-minute walk from the park. Ranking and review website, Niche, also ranks North Las Vegas in several categories, including fourth most diverse suburb in Nevada and the eighth best suburb for young professionals in both the Las Vegas area and Clark County.

With that being said, future homeowners and project developers may ask: how much does it cost to build a house in North Las Vegas?

The Cost of Building a Home in North Las Vegas

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Nationally, building a 2,000-square-foot home costs an average of around $300,000 according to Forbes, which in Nevada would cost around $334,140. With over 100 square miles, about 69% of North Las Vegas is still undeveloped and unfit for construction or development. Despite its population growing more than thrice the national average, the housing market is still inadequate. There are also other issues in North Las Vegas, such as sinking homes within subdivisions that have been demanding attention from the federal, state, and local governments. With these factors, future homeowners of the city are fighting for more affordable housing. As of May 2021, the National Association of Home Builders (NAHB) reported that with the new regulations, the final price of a new home has increased by $93,870. Currently, the median home price in North Las Vegas is $410,000, which is a 30.2% increase over the previous year as per Redfin. Compared to nearby cities, this average is higher, and combined with an 11-day median day spent on the market, the North Las Vegas market is considered very competitive.

The cost of building a new custom home in North Las Vegas depends on the labor, materials, and professional services required. Some of these costs fluctuate independently of each other, such as the foundation, framing, exterior, and interior finishing. There are also the fees the homeowner or contractor may need to settle before proceeding with the construction process. These may include architecture and design fees, building permits, land fees, plumbing, electrical, and other miscellaneous fees that the city or state may require.

Hard Costs

The hard costs are expenses that fund the physical structure and construction of the house. These include the materials, landscaping, labor, and even the total building value. The total cost of new home construction in North Las Vegas ranges from $375 to $700 per square foot or higher. On average, it may cost around $537 per square foot for a middle range single family home.

Figure 1. Typical cost breakdown of a single-family home constructed using the conventional method, according to Home Builder Digest.

Prior to building a house, concrete foundation installation with a four-inch slab on grade costs an average of $6 per square foot as per ProMatcher. Starting with the overall structure of the house, HomeYou states that framing consumes around 10% of the construction cost. With the current price of lumber and the bigger median home size, the cost of labor for a standard house framing job may range anywhere from $6 to $8 per square foot. HomeBlue reports that installing a new roof of a 1,500-square-foot home costs $7,100, with asphalt roofing at around $3.50 to $5.90 per square foot.

Home systems like plumbing, electrical, heating, ventilation, and air conditioning (HVAC) are also included in the hard costs of home construction. The cost of hiring a professional plumber in North Las Vegas may cost as low as $99 or as high as $716, with the per hour fees ranging from $35 to $160. According to HomeYou, these jobs may include services for faucets, bathtubs, sinks, and pipelines. For electric wiring, Manta states that this service may cost from $847 to $1,206, or an average of $1,026. Lastly, for HVAC systems, Ambient Edge, a Las Vegas-based air conditioning and heating repair company, shares that installing a central air conditioning (AC) system varies with a few factors like the type and size of the unit, its model, the ductwork, the home square footage, the system placement, and its features and add-ons. Generally, ACs may cost around $3,500 to $13,000. Ambient Edge also reminds clients that there are other ways to save on the AC unit, such as factory rebates and tax credits and deductions by having energy-efficient units.

Soft Costs

Soft costs are the expenses that go beyond the actual construction of the home, such as architectural design, land development fees, building permit fees, engineering fees, and other miscellaneous expenses.

Cost of the Land

Getting the perfect property is crucial in the process of home construction. Generally, prices may vary with several factors like distance from metropolitan areas, views, amenities, and even land topography. According to property listing websites, the median land cost in North Las Vegas is $191,494. For the average lot size of 19,935 square feet, it costs around $9.74 per square foot of land in the city. However, this value may still increase depending on the development status of the land, since some listed properties may be unimproved for residential purposes. As of May 2022, the cheapest property available in North Las Vegas is two contracted and undeveloped lots for a total of 5,227 square feet, valued at $24,000. The most expensive listing available is priced at $2,200,000 for around 3.25 acres of undeveloped land.

Permits and Other Fees

Permit fees in North Las Vegas may be filed online using the Citizen Self-Service (CSS) Portal. The city government has also created a guide to help citizens and local project owners to navigate the website easily and track their applications. Payments are also to be done with credit cards and submitted online using the CSS Portal; however, the city government accepts checks mailed to the office. After the application, inspection, and payment, permits are issued electronically, including Temporary Certificates of Occupancy and Certificates of Occupancy. When it comes to new single family construction, once it receives the approval from the final inspection, then the permit will become the Certificate of Occupancy.

The permit fees in North Las Vegas are based on the total project value of the property to be constructed. There is also a corresponding administrative fee of $75 for each permit, while the building plan review fee is 65% of the permit fee, which shall be submitted upon application. For inspections with no fee indicated, the standard charge is $100 per hour, with a minimum of two hours for single family construction projects.

The city also has a zoning plan review fee, which is 10% of the permit fee, and a construction tax. The construction tax is calculated at $36 per square foot for residential projects and will not exceed one percent of a property’s valuation or $1,000, whichever is less.

For home necessities, the city also requires permits for electric, mechanical, and plumbing installations, which all have an administrative fee of $75 each. There are also corresponding sub-permit fees, which are associated with the building permits. For this, contractors and builders may opt to choose an itemized schedule or a percentage of the building permit fee as indicated in the table below.

Architecture and Design Fees

Architecture and design fees vary with the size, scope, and complexity of the construction project. The client’s preferences, needs, and lifestyle also contribute to the overall or final design. Some projects may be simple and straightforward, while others may require extensive research, attention to detail, and consultation with industry professionals. Typically, architect rates range anywhere between 5 and 20% of the total construction cost, but in North Las Vegas, ProMatcher states that the average is around 10.25% of the total project cost.

How do the custom home building costs in North Las Vegas compare to other nearby cities?

Henderson is a city in Nevada under Clark County. It is located 21 minutes or 16.1 miles away from North Las Vegas and is the second-largest city in the state after Las Vegas. According to permits taken from BuildZoom (BZ), the average job value in the area is $213,881, and is mostly composed of production single family homes. Redfin reports that as of March 2022, the median home listing reached $499,500, which is about 26.5% higher than the previous year. Homes spend six days less than in March 2021, at 22 days, before it gets sold. With a sale-to-list price ratio of 100.7%, the website considers Henderson as a somewhat competitive marketplace for homebuyers.

Bullhead, Arizona, has over 59 square miles of land area and is the largest city in Mohave County by that standard. The city is 101.5 miles away from North Las Vegas, or around an hour and 40 minutes of travel time. Permits gathered from BZ for Bullhead show that the average project cost of construction is $248,245, or around $76 per square foot. Based on the project descriptions, a lot of single family homes have installed awnings, and have garages and patios. Realtor reports that the median home listing price in Bullhead is $329,900, or an average of $215 per square foot. Despite that, the median selling price is actually $311,000. With an approximately 100% sale-to-list ratio, the city is considered a seller’s market, with more people looking for homes than there are available.

In Kingman, Arizona, the iconic Route 66 can be found. The seat of Mohave County, the city is located 107.8 miles away from North Las Vegas, or about an hour and 48 minutes travel time. Permits taken from BZ show that projects, usually new residential construction, in the area typically cost around $186,820. Realtor states that the current median home listing price in Kingman is $292,000, or around $192 per square foot. Homes sell after an average of 55 days on the market, and at a median selling price of $276,000. With a 100% sale-to-list price ratio, which means that homes get sold approximately at the same price as the asking price, Kingman is also considered a seller’s market.

The Future of North Las Vegas’ Residential Construction Industry

Similar to other cities, the COVID-19 pandemic halted the economic growth of North Las Vegas. This prompted the federal government to work on Opportunity Zone projects, which are development projects to urge companies to invest in economically-struggling areas. With the motivation of tax breaks for companies and individuals, the said projects are expected to bring in growth and jobs for the locals. North Las Vegas also launched the Small Business Connector center back in October 2021 and is helping hundreds of small businesses start up or get back on their feet. Around April 2022, the program increased its funding to existing businesses, which may help the economy recover faster and make it ideal for people who are looking to settle down.

With more and more people looking for better homes, the city government has been responding with affordable housing projects. The Nevada state government has also recently approved the $500,000,000 “Home Means Nevada” project, which will use federal funds from the American Rescue Plan to lower the current cost of housing in the area. This includes a $300,000,000 multi-family development that is expected to produce over 1,000 units for families and seniors. While this may seem hopeful, candidates of the North Las Vegas mayoral race are looking at rent control, which may lead to the production of lower-quality homes.