Donna Lamoureux reads a novel outside a cafe at The District at Green Valley Ranch, a mixed-use project that is slated to grow by 20 acres. Photo by Ronda Churchill. A man peers out from a loft patio at The District at Green Valley Ranch on Friday. The development includes 88 condominiums. Photo by Ronda Churchill. A couple window shops at Damincci Jewelers, part of first phase of The District at Green Valley Ranch, which was built on 25 acres. Photo by Ronda Churchill.

Home builders and developers are turning creative to deal with the high cost of land in Las Vegas and its impact on housing affordability.

They've increased residential density, reduced lot sizes to 4,000 square feet for tract homes and strayed from the single-family, detached product that dominated the market for years. An abundance of urban midrise and high-rise developments are on the board for Las Vegas.

The valley is also experiencing a growing trend toward mixed-use development, an offering of residential, retail and office space within a central setting designed to promote pedestrian traffic and social interaction.

Las Vegas-based Carina Corp. has begun development of the 40-acre Village at Centennial Springs mixed-use project in the northwest valley, Diversified Real Estate Group broke ground on the 50-acre Urban Village on Las Vegas Boulevard South, and The Curve is planned for 47 acres at I-215 and Durango Drive.

"They are very complicated projects to construct because of mixing the uses," said John Restrepo, principal of Restrepo Consulting Group in Las Vegas. "Each use has its own set of challenges and opportunities. Retail's got its own issues, which are different than office. The opportunity with residential is the key piece."

"Mixed-use projects, most of which combine retail and residential uses and many of which are in off-Strip, suburban locations, are becoming prominent as a means by which to offer home buyers (often locals) maintenance-free lifestyle opportunities," Peter Dennehy wrote in a report from the Sullivan Group, a California-based real estate advisory firm.

The concept has been around for long time, especially on the East Coast, but is still in its infancy in Las Vegas, said John Kilduff, president of American Nevada Co.

American Nevada is starting construction on the 20-acre second phase of The District at Green Valley Ranch, off Interstate 215 at Green Valley Parkway. JMA Architecture Studios is doing the design work and Korte Co. is the general contractor.

Along with new tenants such as Whole Foods and Cheesecake Factory, the second phase will have 50,000 square feet of office space over retail, Kilduff said. The 25-acre first phase of The District has 88 condominiums.

"The advantage is you're able to live, work and play in one environment," Kilduff said of mixed-use development. "If it's done right, it's a pedestrian-oriented venue for walking and strolling and meeting with neighbors, instead of getting in a car and driving somewhere."

The trick, he said, is to attract "lifestyle retail tenants" such as Williams-Sonoma, Pottery Barn, Chico's and Talbots, stores that appeal to leisure shoppers.

The Curve has begun leasing retail and restaurant space for its $300 million, 18-acre first phase, which includes two 18-story luxury condo towers and 12 commercial buildings. Construction is expected to start early next year.

Edward Kile, president of The Curve Development, said the project will cater to the growing southwest submarket, which is projected to double in population to 220,000 by 2010. More than 30 percent of the people are in the 25- to 35-year-old age bracket and their median income is nearly $67,000.

Jeff LaPour, principal of LaPour Partners, said the first tenants are finally getting squared away in his Holsum Lofts project, a mix of retail and residential space on Charleston Boulevard.

"I could have leased the building three times over to office users," said LaPour, who spoke about mixed-use development at a recent panel discussion sponsored by the local chapter of National Association of Industrial and Office Properties.

He said Las Vegas has already seen some forms of mixed-use development, such as Hughes Center, which has office, high-rise residential, restaurant and hospitality uses on its 100 acres.

Dennehy said the most substantial challenge for home builders is the tightening supply of developable land in Las Vegas and the resulting rising land prices, which have more than tripled in the past two years. Prime subdivision parcels are commanding prices of $700,000 an acre and infill parcels near the Strip are topping $5 million an acre.

"The impact on home prices and affordability could be the biggest threat to the sustainability of the market," Dennehy said. "(Home) prices should continue to rise, although not quite as rapidly as in previous years. Look for smaller units as a strategy by which to keep absolute prices at relatively affordable levels."

He said many of the factors that contributed to Las Vegas' growth over the past few years are still in place, including 4.9 percent employment growth, low interest rates and relative affordability, particularly when compared with Southern California, a major feeder market.