Rising rent is something that’s spreading across the nation, and Nevada isn’t immune. From 2019 to 2024, median rent prices in Nevada have exploded by nearly 37%. Some want strict rent control measures and others argue that’ll make the situation even worse.
The good news is that nonpartisan studies offer a clear perspective on the consequences of rent controls in places like Oregon and California. The bad news is that no one’s listening.
How Rent Control Started in The U.S.
Localities like New York City and Boston were among the first to pass rent control measures in the U.S. Mostly, this was a response to high eviction rates during the Great Depression in the 1920s. In the decades following, countless other cities enacted similar policies. California and Oregon have taken it even further and passed statewide rent control laws.
Taking Lessons From Oregon & California
California and Oregon are excellent case studies on the efficacy of rent control. According to the polls, many Nevadans (on both sides of the aisle) are more than happy to follow in their footsteps – But are these strict policies doing the opposite of their stated purpose?
- In 2019, Oregon capped rent increases at 7% plus inflation (up to 10% – effective 2023). That means that landlords can raise rent by up to 7% each year, plus the rate of inflation (no more than 10% total increase annually). The goal was stability, but as a consequence, they also stifled development and reduced the already limited affordable housing supply.
- California’s Rent Control Model is even more restrictive. While the exemptions for single-family homes and newer buildings are helpful, they don’t do nearly enough to reduce the housing shortages which are linked to reduced incentives for investors.
Here’s how rent control measures are working out for these states so far – California has the highest rent and largest housing shortage in the nation. Oregon has the ninth most expensive rental market and the fifth largest housing shortage.
Rent Control Proposals in Nevada
In 2023, state legislators introduced several rent control proposals, including:
- Caps on annual rent hikes
- Tougher rules to prevent unfair evictions
- Longer notice periods for rent increases
These measures are fueled by historic rent hikes and limited housing in places like Las Vegas and Reno. Also, 85% of Nevada’s land is controlled by the federal government, which further stifles expansion.
Solving The Housing Crisis In Nevada
Rent control measures disincentivize housing development – Which is exactly what we don’t need. We need the opposite, fewer unnecessary rules, more land, greater investment incentives, and an expanded housing supply.
While Nevadans want, no, need a solution to the housing crisis – we should consider the lessons of Oregon and California before implementing strict rent control policies.
Your Voice Matters
Instead of imposing rigid rules, we should motivate our politicians to promote growth and competition in the housing market. Your input can have an impact. Contact you state lawmakers to express your desire for thoughtful and balanced approaches to Nevada’s housing crisis.
