The study conducted for the Southern Nevada Regional Planning Coalition by Restrepo Consulting Group and the Theodore Roosevelt Institute also suggests it's not enough to have affordable housing whether it's apartments or homes on the fringes of the valley or in satellite communities.

The study calls on local and state government and businesses to work together to craft solutions to address housing affordability and accessibility. Possibilities include employers building housing for employees or, at a minimum, providing bus passes.

Because many news jobs will be where existing jobs are, the majority of the construction of affordable housing can't occur on the fringes of the valley and in satellite communities such as Pahrump, said John Restrepo, the principal at Restrepo Consulting Group.

Work continues on hotel tower of the M Resort at the southern edge of the valley. ULF BUCHHOLZ / STAFF PHOTOGRAPHER

Because many news jobs will be where existing jobs are, the majority of the construction of affordable housing can't occur on the fringes of the valley and in satellite communities such as Pahrump, said John Restrepo, the principal at Restrepo Consulting Group.

The potential is that any affordability will be offset by higher fuel costs, commute times, deterioration of air quality and need for more infrastructure, Restrepo said.

"We are building a large percentage of homes in the suburbs and in some cases the exurbs, and when you don't build homes where people work, that creates a disconnect and affects productivity," Restrepo said.

That means there needs to be an effort for greater housing densities closer to the resort corridor and a greater investment in mass transit, Restrepo said.

One area that local governments should address or revisit is the role of "infi ll" development in helping with the supply of housing near the valley's employment centers, the study said. Local governments need to encourage developers to conduct feasibility studies to consider taller for-rent projects that use alternative construction techniques to make them cheaper to build, the study said.

"This could help to moderate the trend to develop largely bedroom communities in areas located away from major employment centers like the Strip and downtown Las Vegas," Restrepo said.

To be affordable housing, the monthly mortgage payment shouldn't exceed 30 percent of monthly income, the study said.

In the leisure and hospitality industry, the annual salary is $30,372, which translates to a person paying $768 a month. The maximum affordable loan amount is $90,618, the study said. In the construction industry, the annual average salary is $51,376, which translates to a monthly payment of $1,284 for a home valued at $176,699.

The dominant market segment in 2007 was a home priced $250,000 to $300,000, which was 24 percent of the housing stock. About 20 percent were priced $200,000 to $250,000 and 12 percent to 13 percent priced less than $200,000, the study said.

Even with the price drops, about 45 percent of the market was priced above $300,000, but homes need to be priced between $212,000 to $276,000 to be considered affordable, the study said.

Between January and April, 57 percent of the housing units sold on the Multiple Listing Service were priced $250,000 and below. That shows buyers are taking advantage of those opportunities, but Restrepo said there are still problems.

"We continue to face challenges despite the meltdown relative to some of our competitors when it comes to cost of living," Restrepo said. The bigger concern about the housing market, however, is not prices, but the availability of credit, said Steve Schauer, a loan offi cer with Flagship Financial Group. He said he believes the rapid price appreciation that hit this market won't return anytime soon and homes will be more affordable.

"I don't think the prices are the issue but the stricter loan guidelines," Schauer said. That has prevented many buyers from getting loans without putting down 3 percent to 5 percent, he said.

Workers are getting little help from companies in their bid to obtain housing, according to a survey of businesses. Only 5 percent of companies with 400 or more employees said they plan to offer any kind of housing assistance in the next three years, the study said.

"This is clearly a potential issue given the disparity between Southern Nevada household incomes and the long-term housing prices," Restrepo said.

Local governments should work with fi nan- cial institutions and lenders to provide pre-pur- chase counseling and assistance with down payments, the study said.

"This should not be understated," Restrepo said. "These households have diffi culty accumulating savings to purchase a home, as it relates to upfront fees. It is this wealth constraint that is a major hurdle to lower-income homeownership."

Because of the credit crunch, Schauer said there is little that lenders can do. He said sellers are helping buyers with down payments now, but that won't last when the market improves. There are also programs for buyers to obtain grants for down payments

Dennis Smith, president of Home Builders Research, said the answer might be employers providing grants to their employees to help with housing.

To create more affordable housing for employees, the study suggested local governments shorten the public approval process for projects and provide incentives for the development of workforce housing.

Because many people working in the hospitality and other service industries won't be able to afford a home based on their projected wages, that heightens the importance of quality rental housing, Restrepo said.

There is a need for policies that encourage maintenance of existing rental housing and encourage new construction. That's even more important because of the trend to convert and demolish rental housing to pave the way for expansion of the resort corridor.

More apartment units greater than three stories to reduce commute times for workers are needed. But the problem is providing parks, schools and recreation centers to meet that density, he said.

Brian Wargo covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4011 or at wargo@lasvegassun.com.