The national shortage of affordable housing units hasn’t only reached Nevada, it’s taking over. Many here in the Silver State are calling for strict statewide rent control measures to combat the trend. However, there’s growing evidence that suggests that rent control laws don’t increase the number of affordable homes. They do the complete opposite.
These restrictive laws often discourage developers from building, which results in a smaller housing market, and lands us back in the same place we started – A housing shortage.
Nevadans should push politicians to follow in the footsteps of states that have successfully increased inventory through rent control alternative programs. These programs reward developers, cut the red tape, and encourage partnerships between the state and private companies.
Financial Rewards for Builders
We’ll need plenty of investors to fund the building of apartment complexes, condos, and single-family home neighborhoods. When investors can’t see a way to make their money back, they tend to hold off on building new affordable housing projects. Offering developers tax breaks, financial assistance and lower fees encourages them to invest in these projects.
States like Texas and Florida have effectively utilized a mix of these incentives to boost housing availability while controlling rent prices. By following their example, Nevada can increase housing availability and reduce rent simultaneously.
Cut the Red Tape
Simpler zoning laws and building codes can speed up construction and boost the number of houses available. For instance, Minneapolis got rid of single-family zoning in 2019 – Allowing for the construction of more multi-family buildings (i.e., duplexes, triplexes, apartment/condo buildings) and a wider range of affordable housing options.
Nevada could follow suit and allow for the construction of more multi-family dwellings in rapidly growing cities, especially in areas like Las Vegas, Henderson, and Reno where affordable housing is needed.
More Public-Private Partnerships (PPPs)
These are agreements between public entities (municipalities, counties, etc.) and private companies to build housing projects for the betterment of the community. States like Georgia, Florida and Texas have tapped into partnerships to boost the availability of land for development and affordable homes – So, why can’t Nevada?
Take Back Our Land
It’s no secret that the federal government controls upwards of 85% of the land in Nevada. In early 2024, Joe Lombardo sent an impassioned plea to Joe Biden to make more public land available for housing development in Nevada by updating the Resource Management Plans that control our public lands and/or creating a new plan for Nevada.
Further, Rep. Susie Lee (B-NV) has recently introduced the Accelerating Appraisals and Conservation Efforts (AACE) Act to streamline the construction of more housing projects on public lands and cut unnecessary regulations/steps.
While Joe Biden failed to take the necessary action to free up land in Nevada, the Trump administration seems to be more open to these kinds of measures.
Subscribe to Nevada Policy To Stay Updated
Many impartial studies shed light on the disadvantages of rent control laws. Rather than depending on untested measures such as rent control – Nevada legislators should focus their efforts on promoting construction, reducing unnecessary hurdles and leaning on public-private partnerships to meet the housing needs of the residents in this state. Join our mailing list today to stay updated on Nevada’s housing crisis.
