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

IBS

Jul 27, 2026

Precision Planning Keeps The New American Home 2027 on Track

As construction quickly progresses on the 2027 exhibit home of the International Builders' Show, the project is strategically navigating one of its most demanding phases: the rough-in.

Advocacy | Economics

Jul 24, 2026

Podcast: Exploring Next Steps on the ROAD to Housing

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez discuss what’s next following the enactment of the 21st Century ROAD to Housing Act, how state and local HBAs are tackling key issues in their areas, and the latest economic data.

View all

Latest Economic News

Economics

Jul 27, 2026

Share of Apartments Built in Buildings with 50+ Units Moves Higher in 2025

Following the highest number of multifamily completions in nearly 40 years in 2024, completions declined in 2025 to 484,000, according to NAHB analysis of the Census Bureau’s Survey of Construction. For the ninth consecutive year, a majority of new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.

Economics

Jul 24, 2026

New Home Sales Edge Higher as Affordability Challenges Persist

Affordability challenges continued to weigh on the new-home market in June, as elevated mortgage rates, rising inflation and broader economic uncertainty kept many prospective buyers on the sidelines.

Economics

Jul 23, 2026

Acquisitions Increasing Among Home Builders

At the start of 2026, most home builders predicted that high mortgage rates and hesitancy among buyers would be their toughest challenges this year. They weren’t wrong: the 30-year mortgage rate averaged 6.49% in June and housing demand has weakened, as reflected by flat mortgage applications in the first half of the year.