Condo Conversion Causes Housing Shortage

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Condo Conversion Causes Housing Shortage
Jan 19, 2006, 05:36 PM EST

Home sales in Southern Nevada rose 30 percent last year. There hasn't been this much action in more than a decade.

The climb is due in part to old apartments being converted to relatively inexpensive condos. According to Monica Caruso of the Southern Nevada Home Builders Association.

"The numbers do look a little strange because we have 38,000 new home sales, but a lot of that is more than 7,000 apartment to condo conversions which is clearly an indication of the need for affordable housing," Caruso said.

The city council is now looking at a moratorium on condo conversions. With thousand of apartments being taken off the market, renters are having a hard time finding affordable places to live.

"It was a dream come true, the price was right. It was one of the best deals in the city," said Rudy Durso, condo conversion owner. Buying a converted condo sounded great for first time home buyer Rudy Durso. Now construction defects are making it a nightmare.

That's not the only problem the Las Vegas City Council wants to solve says council member Steve Wolfson.

"There are certain areas where the rental market is being totally depleted," Wolfson said. Red Rock Station is in his ward. He says there are virtually no rental units. "I would venture to say that a significant number of the Red Rock Station employees are going to be renters, where are they going to rent, we don't want people to live on the east side of town and work on the west side of town," Wolfson said.

He is the driving force behind a proposal to take a closer look at condo conversions. One new requirement would be to notify renters that they could be suddenly forced out. Fresca Amptil didn't know her apartment was up for a condo conversion.

"It is really not good, it is heart breaking," Amptil said.

In the past six months the number of available apartment has dropped by 10,000. Some renters are protecting themselves by signing leases.