Nevada’s housing crisis has reached a critical point, and one of the most promising solutions is cutting through the regulatory barriers that making is costly to build new housing. To navigate this labyrinth of deregulation and improve our situation, we need to dive into the specific laws and policies that are holding back development and driving up costs for Nevadans.

Zoning Laws (NRS Chapter 278): The Gatekeeper of all Builds

Zoning laws are simply the laws declaring where certain types of buildings can go. Under NRS Chapter 278, local governments get to decide what kinds of homes can be built in different parts of a city. Sounds pretty reasonable, right? Well, here’s the catch: a lot of these zoning laws heavily favor single-family homes (you know, the white picket fence kind), making it tough to build things like apartments or townhomes in the areas where people actually need them. Which creates the first hurdle for many developers, and restrict the housing supply.

Solution: Loosen the zoning rules! By allowing more flexibility in where developers can build higher-density housing, we could create more options at lower price points. More homes = more competition = better prices for everyone.

Building Codes (NRS 444): The Rulebook for What Homes Have to Look Like

Under NRS 444, Nevada’s building regulations set the rules for how homes must be built. Of course, we all want our homes to be safe. However, these codes can be overly detailed, adding extra costs without providing much extra value. These rules could include specifications for certain materials, designs or environmental reviews that add cost to developers which get passed to Nevadans.

Solution: Simplify the building code requirements for affordable housing. Let’s keep the important safety regulations, but trim the excess to speed up the building process and reduce costs. Quicker builds mean more affordable homes for Nevada families.

Permitting Process (NRS 278.025): The Waiting Game

Here is a fun fact (or not so fun, if you are waiting for a house to be built): The permitting process can be a huge bottleneck. Under NRS 278.025, developers need to jump through all kinds of hoops to get a project approved. This can include environmental studies, design reviews, and inspections that drag on for months—sometimes even years.

The longer a project sits in “approval limbo,” the more expensive it gets. And guess what? Developers pass those costs on to homebuyers and renters.

Solution: Streamline the permitting process. By cutting down on the time it takes to get approvals, we can help developers build faster and cheaper, which means more affordable homes on the market sooner.

Impact Fees (NRS 278B): Paying for the Privilege to Build

Ever wonder why housing developments have to pay extra fees just to build? Under NRS 278B, local governments charge developers impact fees, which go toward public services like roads, schools, and utilities. Now, while it’s important to fund those services, these fees can be so high that they discourage developers from building more affordable homes.

In some cases, these impact fees get passed directly to homebuyers, driving up the price tag of new homes.

Solution: Rethink impact fees for affordable housing projects. Let’s reduce or waive these fees for developers who are focused on creating affordable homes. This would encourage more building, and guess what? Lower fees mean lower prices for homebuyers.

This article was originally published in Nevada Business.

Nevada Policy’s affordable housing report, The Construction of a Crisis, to learn more about how housing in Nevada came to be so expensive and what can be done to change that.