Could Federal Land Solve the Affordable Housing Crisis? 🏠🗺️

Hello everyone! Spring is officially here, and we've got a packed newsletter covering the latest market shifts, new trends shaping buyer behavior, and exciting developments right here in Las Vegas.

Let’s dive in!

Read time: ~5 minutes

Rates ended LOWER compared to last week, and volatility was LOW. Rates are in the high 6’s for most loan types without paying discount points. Paying discount points can get you in the low-to-mid 6’s.

Could Federal Land Solve the Affordable Housing Crisis? 🏠🗺️

Affordable housing continues to dominate headlines, and now the Trump administration has launched a task force exploring whether using federal land could help solve the problem.

Both sides of the political aisle have expressed support for leveraging government-owned land, an idea that gained popularity during the recent presidential race. The U.S. government currently owns a massive amount—roughly 650 million acres, or about 25% of the entire country—but most of this land is in rural states like Montana, Idaho, and Utah.

However, about 7.3% of this federal land (around 47 million acres) lies within metropolitan areas desperately needing more housing. Las Vegas, along with Salt Lake City, tops the list of cities positioned to benefit, given the existing infrastructure and rapid population growth.

In fact, Las Vegas recently witnessed a notable development: the Biden-Harris administration facilitated the sale of 20 acres of public land to Clark County at just $100 per acre—a fraction of its nearly $20 million appraised value. Located at Cactus Avenue between Buffalo Drive and Rainbow Boulevard, this land will become home to the "Welcome Home Community Land Trust, Cactus Trails," featuring 210 single-family homes aimed at households earning $70,000 per year or less. The development will also include walking trails and playgrounds, a promising sign of what leveraging federal land can achieve right here in our community.

Still, several challenges remain:

💸 Building new infrastructure or expanding what we have is expensive.

🌲 Environmental concerns and the protection of wildlife habitats could trigger significant opposition.

🧱 Rising material costs and skilled labor shortages could slow down development.

🏛️ Coordinating various levels of government can be notoriously difficult.

🙅‍♂️ Community resistance from residents who oppose new developments nearby.

This approach is definitely a marathon rather than a sprint, with many hurdles ahead. But since it's one of the rare ideas receiving bipartisan support and is already making real-world impacts locally, it's something we should all keep our eyes on.

Buyers are Rolling the Dice—Here's How You Can Help 🎲🔥

It's early 2025, and we're still feeling the squeeze from affordability challenges, higher mortgage rates, and elevated home prices. But here's something interesting: According to a recent HomeLight survey, 71% of lenders are witnessing buyers take greater risks—choosing properties that need work, exploring non-traditional financing options, and embracing multi-generational living setups to achieve homeownership.

What does this mean for us real estate professionals? It’s simple—adapt or get left behind. Here are four strategies you can use right now to leverage these trends and win more deals:

🔨 1. Embrace the Fixer-Upper Mindset
Since 71% of buyers are open to purchasing homes that need renovation, this is your moment to:

• Showcase properties that offer renovation opportunities and clearly communicate their potential.

• Build relationships with reliable contractors to offer buyers quick renovation estimates on the spot.

👨‍👩‍👧‍👦 2. Cater to Multi-generational Buyers
Multigenerational households are rising rapidly, creating a golden opportunity:

• Highlight listings featuring in-law suites, separate living spaces, or potential for expansion.

• Create buyer resources or guides tailored to families interested in multi-generational living.

🏘️ 3. Spot the ADU Opportunities
Accessory Dwelling Units (ADUs) are increasingly popular as income generators:

• Identify properties with ADU-friendly zoning or existing spaces that can easily convert.

• Connect with lenders offering ADU financing and create informative videos explaining how an ADU can add value.

📑 4. Educate Clients on Creative Financing Options
Buyers are more open to ARMs, temporary rate buydowns, and non-QM loans:

• Team up with your preferred lender to produce educational content like quick social videos or seminars explaining these unique options.

• Provide real-life scenarios to build client confidence in these alternative financing strategies.

February Home Sales Beat Expectations—A Turning Point? 🔥📊

Last week's existing home sales report from NAR gave us a pleasant surprise. Experts anticipated sales below 4 million units annually, but the February numbers came in significantly higher at 4.26 million!

That’s the strongest monthly figure we’ve seen in about a year.

To be clear, we’re still moving sideways compared to the hot pre-pandemic years. But even this small improvement is welcome news for all of us in real estate who’ve been battling low inventory and slow activity for so long.

Two Ways My Team & I Can Help

1. Lets collaborate- Schedule a zoom meeting

2. Tough Deal? Let us know if we can help