The construction boom in Nevada has boosted housing supply, but the supply is limited by a shortage of materials.
The shortage is the result of the state’s strict environmental regulations, according to a report released Monday by the nonprofit California Center for Housing Policy.
The report, “California’s Housing Crisis: A New California Problem?” found that the shortage has created a backlog in the construction industry and that there are currently only about 15 percent of the housing in the state that could be constructed if California had a full-time construction workforce.
California currently has about 18,000 workers and a population of about 3.6 million.
The state has a shortage in the building trades and in some of the trades that produce the building materials.
A shortage of new building materials is causing the backlog, according the report.
The California Center is working with the state Department of Forestry and Fire Protection, the National Association of Realtors, the State Office of Building Safety and Inspections and the Nevada Building Code Commission to address the problem.
The group also hopes to increase the number of construction workers in the country.
“There is a lot of supply, and the demand is growing,” said Chris Wilson, director of the California Center’s Building Resources and Safety program.
“We want to see that grow.”
In addition to a shortage, the state has seen a rise in home prices.
The median price of a home in Nevada is now about $900,000, up about $5,000 from the year before.
The average price of homes in the Golden State has risen by about $3,000 over the past year, Wilson said.
The number of home sales in the United States has more than doubled since 2000, with the majority of those sales coming from Las Vegas and Reno, according a report by The Associated Press.
The Nevada Association of Counties reported that the home-price increase of about 6 percent over the last three years has been a result of higher taxes, including a 1.8 percent increase in the property tax rate in 2018.
Wilson said the report should be a wake-up call for the construction sector, which is often blamed for the shortage.
“People say, ‘Oh, they can’t build,’ and I say, You can build,” Wilson said, adding that the supply problem is real.
“But we can’t just keep building.”
The California Building Code and Department of Finance are working with local governments to address this problem, Wilson added.
The city of Las Vegas, for example, has created an advisory committee to discuss and work with the community on how to address supply issues.
Wilson and his colleagues hope the report will lead to improvements.
“When we talk about this issue, we need to be careful not to get into an overreaction mode,” Wilson added, “because we have a lot to do in the coming year to fix the problem.”
The report found that only about half of the building supply in Nevada was actually made in the desert, and most of that was manufactured outside of the United Sates.
In Nevada, the supply of building materials and materials used in building are limited to a handful of states, including California, Arizona, and New Mexico.
About 70 percent of building material used in the U.S. is imported from other countries, according data compiled by the National Council of Realty.
Wilson believes that there is a lack of leadership in the national construction industry, and that’s why the report focuses on Nevada.
“It’s important to get our message out there to people that building in Nevada doesn’t have to be a black hole of limited supply,” Wilson noted.
“The supply is real and it needs to be addressed.”