Reno-area building boom unlikely to bust soon

RENO - Construction is nearly at a standstill in western Nevada right now as builders wait for the snow to melt and temperature to warm up. But they say it's only a temporary lull.

Construction hit a record $1.6 billion in the Reno-Sparks area last year, including 5,631 new homes and apartment units.

Sparks assistant city manager Randy Mellinger and Reno planning director John Hester said the boom isn't likely to stall.

"Both commercial and residential developers say there is more demand than supply," Hester said.

Mellinger, a member of the county economic development authority, said good times are being driven by retired Californians buying homes, low interest rates and businesses fleeing California because of the state's lingering budget problems.

But Michael Lynch, Builders Association of Northern Nevada executive director, cautioned that the pace of construction the past few years could ebb because of a shortage of land and workers.

State officials point to the construction industry creating a surge in the economy. In November, construction jobs in Washoe County totaled 20,100 compared with 24,200 in the gaming industry. On average, state statistics show construction workers make twice as much as casino workers.

R&K Homes of Sacramento is building 86 homes at Hillcrest, 700 homes in Fernley and custom homes in Hidden Valley. Last fall, it won approval to build 157 homes on one acre-plus lots in Golden Valley and is planning to build in the Verdi area.