Affordable housing is a serious problem here. According to the 2005-2009 HUD Consolidated Plan, "[in Clark County] over 122,000 moderate- and low-income households are estimated to be paying for housing they cannot really afford."

In 2005, the UNLV Lied Institute for Real Estate Studies hosted a series of roundtables that brought together representatives from the public, private and nonprofit sectors of Southern Nevada to discuss steps that should be taken to ensure that the residents of this area, regardless of income, find housing affordable to their means.

A White Paper, which was produced from the roundtables, reported the following: "There are social costs of inadequate housing, including increased homelessness, family disintegration and employment instability. All affect the community as a whole. Affordable and attainable housing are not abstract terms, but a measure of how well a society serves its members. People should not have to choose between paying for food and medicine and paying their rent and utilities. Southern Nevada should be able to attract qualified nurses, teachers, firefighters and policemen (and many other valuable professionals) who, as middle-income earners cannot afford the purchase of a home in this area. Lack of affordable and attainable housing affects everyone in the community."

As a community, how have we responded to the community housing challenge since the roundtables? Are we solving the problem? Are we moving closer to a solution to the workforce housing dilemma faced by our community? The answer is "no" and, in some regards, we are losing ground.

The National Association of Home Builders issued a report in the third quarter of 2006 indicating that only 14 percent of the homes in Clark County are affordable to households earning the median income (median household income approximately $53,000). Today, the median price of a resale home in Las Vegas is $278,000, more than five times the median income, while the median price of a new home is $326,750 (of all product types), or six times the median income.

Traditional lending guidelines suggest buyers should qualify for home loans at about three times their annual income. Therefore, assuming a down payment of 20 percent, the median income would be $21,133 short of qualifying for a $278,000 resale home.

In January 1990, the median price of a new home in Clark County was $106,950. This translates to an increase of $219,800 or over 200 percent in about 17 years. The price of resales increased by 167 percent. During the same period of time the median household income increased by 64 percent.

Since January 2000, the median price of a new home has increased by 121 percent, the resale median increased by 116 percent, while household median income increased 27 percent.

The factors that are contributing to the increasing cost of housing here include:

• Excellent housing demand fueled by new jobs being created in the hotel/gaming industry. Strong expansion in the construction and government segments also contributed to Southern Nevada's impressive job growth. During the past five to 10 years, annual job growth in Clark County has averaged two to four times the national average. Job growth normally results in housing sales.

• There is a limited supply of land available for development in the Las Vegas valley. When combined with very strong housing demand and a low supply of homes during 2003 - 2005, it created a buying frenzy that drove up raw land prices by 80 - 100 percent. Rising land development and construction costs also contributed to the incredible increase in the land basis for home builders during 2003-2005.

• Some of the strongest in-migration in the United States (6,000 - 7,000 per month) was attracted to Southern Nevada by the robust job growth. This helped spur some of the strongest housing demand in the United States.

• Low interest rates and innovative new mortgages allowed many consumers to qualify for loans that were previously unattainable. These sub-prime mortgages helped close the affordability gap for the short-term, but they also help cause the present crisis in the lending industry. Lenders and builders allowed an unprecedented number of investors and speculators to buy homes, which resulted in a short-term artificial level of demand. This helped push price increases of homes during 2004 “2005 to historical new levels. The full effects of the present subprime calamity are still being measured.

Affordabilty is an issue throughout the west and is a complex problem to solve. The Urban Land Institute will provide important resources to addressing the problem in Las Vegas. ULI has created the Terwilliger Center for Workforce Housing in order to focus on identifying and being a clearinghouse for best practices in workforce housing. In addition, ULI has created a western regional office in Los Angeles that will address issues related to balanced development in the western states.

Your local District Council in Las Vegas will have a strong voice in establishing strategic direction for that office to maximize the benefits to our community. Through a strong and effective Urban Land Institute District Council in Las Vegas we have the ability to tap into the best resources available in tackling this important issue.