Southern Nevada HBA Win on Utilities May Lower Cost of New Townhomes

Legal
Published

The Southern Nevada Home Builders Association recently won a long battle with the state’s energy authority over the classification of townhomes when calculating the cost to install new electric lines.

For years, Nevada Energy has classified newly constructed townhomes as multifamily properties. The issue for home builders and developers is that Nevada Energy’s Rule 9 Line Extension Allowances are lower for multifamily projects on a per-unit basis than for single-family homes.

Over the last year, the Southern Nevada HBA has been working diligently on behalf of its members, lobbying at the Public Utilities Commission of Nevada to seek clarity on the classification of townhomes. After receiving a grant from the NAHB Legal Action Fund, the HBA submitted a petition to the Public Utilities Commission of Nevada and ultimately won reclassification of townhomes as single-family dwellings.

The reclassification could have a big impact on development in Southern Nevada, which includes Las Vegas. The HBA estimates it could save as much as $3,500 per unit. 

This was a significant issue for prospective home buyers in Las Vegas, where townhomes are one of the most accessible products in the housing market and represent 30% of the Southern Nevada market.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership
Aug 19, 2026
NAHB Connect Unveils Major Networking Platform Updates

To best meet the needs of NAHB members, NAHB Connect launched three new communities to jumpstart dialogue around the biggest, ever-changing industry topics.

Construction Costs | Material Costs
Aug 18, 2026
Building Material Prices Show Growth In July

Residential building material prices, excluding energy, rose 0.4% in July and were up 5% from a year ago. The year-over-year percentage increase in building materials was the highest since December 2022.

View all

Latest Economic News

Economics
Aug 19, 2026
Flat Conditions for Custom Home Building

With overall single-family construction down almost 7% for the first seven months of 2026, custom home building has been a relative bright spot for the residential construction industry.

Economics
Aug 18, 2026
Housing Starts Retreat on Market Headwinds

Housing starts fell in July as economic uncertainty, rising construction costs, labor shortages and elevated financing expenses continued to challenge builders.

Economics
Aug 18, 2026
Cash Purchases of New Homes Fall to Lowest Share Since 2007

New home sales rose in the second quarter but were lower than a year ago, according to the U.S. Census Bureau New Residential Sales release.