Nevada’s housing costs are getting out of control for families and policymakers. According to UNLV’s Housing Policy Forum, the Las Vegas Valley (among many other municipalities) has seen huge jumps in median home prices due to lack of inventory and more demand.

Rent control sounds like a quick fix to the affordability problem, but evidence from years of research on rent control shows that it can actually make housing shortages much worse. 

The Unintended Consequences of Rent Control

Many who are in favor of capping housing costs have excellent intentions. In fact, there’s plenty of research that suggests that rent control can be very effective in lowering housing costs for those in controlled units. 

However, that same data points to a mountain of evidence that these restrictive laws have some unintended effects, like:

• Higher rents for people living in uncontrolled units
• Less housing options available, which leads to staying in the same place – even if it’s not a good fit for your needs. 
• Reduced construction, resulting in less housing, and putting us in the same situation that we started (if not worse). 

Economic research from the Brookings Institution backs up these claims – adding another nugget of truth to the notion that rent control halts construction, reduces the housing supply, and even lowers the living standards of those who are already renting. 

More Proof That Controlled Rents Are Not The Solution 

From 2020 to late 2023 Argentina was once home to some of the world’s most restrictive rent control laws. The goal was to make housing more affordable and accessible, but the complete opposite occurred. In just three short years the amount of places for rent dropped by 45%. 

In December of 2023, President Javier Milei scrapped all of these rent control laws and the Argentinian housing market has been surging ever since. So much so that Buenos Aires has seen a 170% jump in the number of units available. 

If Not Rent Control – Then What? 

Whether it’s high rent prices in Las Vegas or Reno battling one of the worst housing shortages in the US,  there are solutions available that encourage more housing and lower rents – and they don’t require heavy-handed legislation or restrictions: 

• Reward New Construction: Think of tax credits and reduced construction fees as giving a baker (i.e., builders) the ingredients to make more bread (i.e., housing developments) – Which the people desperately need. Austin, Texas used these tools to fuel a housing boom and increase supply for all.

• Eliminating Roadblocks:  Tough zoning laws and building codes are like useless traffic cones on an already crowded road. The only purpose they serve is to block progress. When we remove these blocks, we clear the road for more new projects. 

• Work Together: Teamwork makes the dream work. When the government partners with a private company it’s similar to a neighborhood potluck, everyone brings something to the table to help. For example, PRC Equity Fund and Texas Universities have worked together to solve the housing shortage on campuses across the state. 

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Rent control laws are well-intentioned but come with major flaws that we simply can’t afford. Nevadans need free market policies that encourage more construction, not strict laws that suffocate the housing supply. 

We’re here to supply you with up-to-date information on Nevada housing policies and help you advocate for smarter solutions. Join Nevada Policy’s email list today to stay informed.