Housing developments set to address Elko's shortage

Workers hard-pressed to find housing so they can take jobs in Elko County's booming economy appear to be getting some relief.

Business and government leaders learned last week that residential developers are beginning to move forward on projects across the region.

And not a moment too soon.

The region's mines are expected to add another 120 jobs in coming months, Barrick Gold's Lou Schack says, further compounding the shortage of single- and multifamily housing in Elko.

"We have about three different complexes that could go forward in the next few months," says Pam Borda of the Elko County Economic Diversification Authority.

Blue Ox Development of Rexburg, Idaho, is moving forward with Elko Mountain Village, a 35-acre site slated for town homes and apartments near Northeastern Nevada Regional Hospital.

And a 19-unit apartment complex in Carlin is nearly ready to kick off, with more units to follow, Borda says.

"I am really convinced we finally have the right developer and investor teamed up and ready to do something," she says.

Northern Nevada Homes of Reno is moving forward with its Copper Trails housing project off Fifth Street and will introduce new product this year, says Manager Rob Fitzgerald. Northern Nevada Homes started grading in November and recently began construction on two houses it hopes to have ready for closing by spring. Fitzgerald says the tentative plan is to start another five homes, and based on demand perhaps another five later in the year.

The entire project a total of 146 single-family homes starting in the low $200,000s is privately financed.

"We are basically just starting," Fitzgerald says. "There is no bank money available for what we do, and that really limits us."

Fitzgerald says his firm will handle sales at the subdivision, and he's been engaged several times for bulk buys to be used as rental homes. His equity partners purchased 23.4 acres after recognizing Elko has dire need for new housing.

"They don't have the foreclosure or equity problems we have elsewhere, so that eliminated the fear of shadow inventory, and the average income is around $75,000 to $80,000. We thought we could not go wrong, and I think we will have a good solid marketplace out there for a long time," Fitzgerald says.

Borda says the lack of housing is the No. 1 issue for every employer in Elko County. At times, she says, it's even hard to find hotel rooms to put people in.

"If we can get these projects going we will do a lot better at recruiting additional businesses," she says.

Due to the high number of mining service providers that have located to Elko or expanded operations in the area, the need for additional industrial warehouse space also is becoming critical.

Borda, who recruits businesses to the region, says companies always expect that Elko has a glut of empty buildings like most cities. That's far from the truth, she says.

"People are always shocked when they want to come here to lease 15,000 to 150,000 square-foot-building and they aren't here," she says.