The Focus Group’s 1,700 acre purchase at Kyle Gateway is shaping up and soon to be presented to the City Council, reports the Las Vegas Sun. The final plan will include 15,000 homes, some 3,000 more than originally announced.

That’s got Mt. Charleston residents very nervous but City Councilman Steve Ross is upbeat about the project. And it’s not just more houses or houses with a smaller footprint. There will also be a core of apartments running from five to possibly eight stories.

The Sun reports this more or less like it’s a victory for town planning. But the obvious fact is that land is much more valuable than it used to be. And within the last five years, three story apartments and homes have become routine in new developments. It’s about the land prices, isn’t it.

And it’s also about the freeway. The city’s only viable option for big developments is to keep annexing up Interstate 95. But the two lanes north of Ann Road are already struggling with the traffic and the interchange at Rainbow is a nightmare in rush hour.

Memo to NDOT: Time to start figuring out how to cope with all those cars that are going to be moving up and down the 95. Looks like the days of the 20 minute commute will soon be a memory.

And the Review-Journal reports that Las Vegas has moved up to No. 3 spot on the Marcus & Millichap National Apartment Index. If we’re trying to get affordable housing, this is not the kind of index you want to move up on.

“Investor demand for Las Vegas apartments will remain strong this year,” M&M’s man in Las Vegas, Christopher LoBello, tells the paper. “Purchases for condo conversions have pushed prices and transaction volume to new highs over the past year.”

The demand for apartment complexes for condo conversion results from higher land prices. That’s making condos the new starter home in the valley. And that’s before we even discuss the trend towards smaller family units, which is pushing demand for condos everywhere.