Video Source: Senate Committee on Commerce and Labor, posted on the Nevada Legislature’s YouTube
Imagine a Nevada where finding a home becomes even harder, where rents skyrocket, and small landlords are forced to sell because they can’t keep up with rising costs. This could be the reality if Assembly Bill 280 (AB 280) passes with its temporary rent control provision in Section 3. Capping rent increases at 5 percent for some retired tenants might sound like a lifeline, but it’s not what it seems. Here’s why AB 280 could wreck Nevada’s housing market and why we must oppose it.
Rent Control Creates Housing Shortages
Rent control, even if limited, messes with how the housing market works. By capping rent increases, AB 280 makes it harder for landlords to cover rising costs like utilities, insurance, and maintenance. This discourages them from investing in new rental properties or maintaining existing ones. Over time, fewer homes get built, and the quality of rentals can decline.
Nevada is already struggling to build enough homes to keep up with its growing population. Rent control could make this worse by signaling to developers that there might be more price controls in the future. Fewer homes mean higher prices for everyone, not just renters, making it harder for Nevadans to find affordable housing.
It Also Attracts Wealthy Retirees, Not Just Those in Need
AB 280’s rent cap is not means-tested, meaning it applies to retirees regardless of their financial situation. This means even wealthy retirees moving to Nevada could benefit, taking up housing that might otherwise go to locals or those truly struggling. This could drive up demand for rentals without increasing supply, putting more pressure on Nevada’s already tight housing market.
Small Landlords Get Squeezed
Many landlords in Nevada are small property owners who rely on rental income to pay their bills or fund their own retirement. With inflation driving up costs for things like repairs and insurance, a 5 percent rent cap could leave them unable to keep up. Some might delay fixing properties or even sell, reducing the number of rentals available. This hurts both landlords and tenants in the long run.
Better Solutions Exist
Instead of rent control, Nevada should focus on smarter ways to fix its housing problems. Streamlining permitting processes, easing zoning restrictions, and encouraging new construction without hurting the rental market. These solutions boost housing supply and keep the market healthy, benefiting everyone.
Why We Should Oppose AB 280
AB 280’s rent control might seem like a small step, but it could lead to big problems: fewer homes, lower-quality rentals, and financial strain for small landlords. Nevada Policy opposes this bill because it undermines the housing market and ignores better solutions. Let’s urge lawmakers to reject AB 280 and focus on building more homes for Nevadans.
