When the rent is too high for the average person, the solution is to cap prices, right? Not exactly. These policies promise lower rents, more housing, and protection from unfair rent hikes – but, there are many unintended consequences and costs that hurt you, the tenant, and the overall housing market.

Affordable housing in Nevada is at the top of everyone’s mind, but rent control would be a short term gain in exchange for a long term loss. 

The Maintenance Dilemma for Landlords

The United Kingdom’s Institute of Economic Affairs (IEA) took a look at most of the available research on the effects of rent control. They found that 15 of 20 studies showed a clear connection between rent control laws and poor maintenance quality.

Just as the weaknesses of rent control laws are clear around the world,  we must also deal with the realities of these policies in America. In San Francisco, Stanford University researchers found that rent-controlled properties were less likely to be maintained – Which often leads to unsafe and uncomfortable living conditions. 

As the statistics overwhelmingly show, these kinds of policies in Nevada would lead to much more harm than good. 

A Construction Slowdown

Still not convinced that rent control discourages new housing construction? Here’s more proof. In 1994, Cambridge, Massachusetts ended its longstanding rent control laws. In the 10 years following that decision (1994-2004), roughly $1.8 billion was added to the total value of the housing market. Much of that came from new construction and increased property values that were previously capped. 

Rent Control’s Ripple Effects

These laws that are supposed to limit rent prices, typically do the opposite.  A 1990 study on the effect of rent control policies in Santa Monica, CA showed that while these laws were good for people who already lived in rent-controlled units, they led to much higher rents and less housing for those who didn’t. 

Nevadans aren’t immune to this domino effect – Rent control creates a two-tiered housing system, creating groups of “haves” and “have-nots”, which is exactly what we don’t want. 

A Smarter Path Forward

Nevada has better options than rent control to keep housing safe and available. Examples of “smarter” policies include: 

• Taxing unused land to encourage owners to build instead of letting it sit empty.
• Simplifying zoning rules to allow neighborhoods to have homes, shops, and parks all in one place. 
• Offer loans to small landlords to fix up their properties.

Rent control sounds like a quick fix but it creates bigger problems. Nevada needs ideas that bring in investment, keep homes safe, and make housing easier to find.

Take Action

At Nevada Policy, we’re laser-focused on increasing the availability of housing and the quality. Use our Action Center today to send a digital letter to Nevada lawmakers, letting them know that you are a citizen who cares about housing in the state, and will remember their response when the next election comes around.