(Amy Groves) – I recently found this article in the Reno Gazette Journal from the owner of a small apartment complex in Sparks. He makes some excellent points about how the economics of rent control just don’t pencil out.
I thought it would be interesting to delve further into this issue, as it will likely come up in the legislative session that starts in February.
The fight over rent control is heating up in Nevada, and it’s easy to see why. Housing prices in Las Vegas and beyond have been climbing, leaving many residents struggling to make ends meet. But as tempting as rent control might sound, the truth is simple: it doesn’t work. In fact, it will only make things worse.
Let’s break it down. Rent control sounds like a good idea. After all, who wouldn’t want to stop skyrocketing rent prices? But when you pull back the curtain, the unintended consequences are staggering. The folks pushing for these measures often ignore how much damage they do to the housing market, property owners, and, yes, even renters.
In December 2024, the average price for a house in Las Vegas was $434,000, which is 2% higher than the year before. This means that buying a home is getting more expensive. For renters, the situation is also tough. The median rent in Las Vegas is $1,456 per month. Many people are spending a big part of their income just to have a place to live.
A Personal Look at the Risks
Take it from the owner of the small apartment complex in Sparks. He and his wife took on the challenge of turning a run-down, 40-year-old building into a 59-unit apartment complex called The HUB@Oddie. It wasn’t easy. Interest rates doubled while they were borrowing money. Thieves stole copper wiring from the building, adding costs for repairs and security. They poured years of effort—and plenty of money—into this project.
Despite all the challenges, they’re now renting out apartments at affordable rates, covering their costs while providing housing for a community in need. But they made one thing clear: if rent control were in place, this project would’ve been impossible. The risk wouldn’t have been worth it, and those 59 units wouldn’t exist today.
This is a textbook example of what happens when government overreach strangles private investment. Rent control may sound like a win for tenants, but it chokes off the lifeblood of the housing market: property owners willing to take risks.
Some people think that rent control laws could help by limiting how much landlords can raise rents. But in places like Clark County, such laws might actually make things worse. If landlords can’t charge enough rent to cover their costs, they might not keep up with repairs or might even sell their properties. This could lead to fewer rental homes and worse living conditions.
The Reality of Rent Control
Rent control doesn’t just hurt property owners. It hurts tenants, too—often the very people it’s supposed to help. When landlords can’t charge market rates, they lose the incentive to maintain their properties. Why spend money on renovations if you’ll never recoup the costs? Over time, buildings deteriorate. The result? Rundown housing stock and unhappy renters.
Studies back this up. In cities like New York and San Francisco, where rent control is widespread, housing quality has plummeted. The National Bureau of Economic Research found that rent control policies reduce property values and discourage investment in rental housing. It’s not rocket science: when you punish landlords for providing housing, they stop providing it.
But that’s not all. Rent control also drives developers away. Instead of building rental units, developers pivot to projects like luxury condos or vacation rentals, which aren’t subject to rent control. The result? Fewer rental units, less competition, and higher prices in the long run.
Even worse, rent control often creates black markets. In some cities, renters “sublet” their controlled apartments for higher prices under the table. Others hold onto rent-controlled units for decades, even if they no longer need them, because they’re so cheap. This limits availability for families who truly need affordable housing.
A Violation of Property Rights
There’s another issue here that’s bigger than just dollars and cents: property rights. In a free country, property owners should be able to set rent prices based on market conditions. It’s their property, their investment, and their risk. Rent control tells them what they can and can’t charge—essentially turning private property into a government-controlled asset.
This is wrong. It goes against the principles of free markets and limited government that have made America strong. If the government can tell landlords how much rent to charge, what’s next? Limiting what you can sell your home for? Controlling how much you can charge for your business’s services?
Real Solutions That Work
Instead of turning to failed policies like rent control, Nevada should focus on real solutions. Housing shortages won’t be solved by strangling property owners. They’ll be solved by increasing the supply of housing.
Cut red tape. Make it easier and faster to build housing by streamlining zoning regulations and the development process.
In Nevada, the need for more housing is clear. A recent report from the Nevada Housing Division found that the state is short more than 80,000 affordable rental units.
Rent control won’t fix this. It’ll only make the problem worse. But by encouraging development and supporting renters directly, we can tackle the housing crisis without destroying the market.
The Bottom Line
Rent control may look good on paper, but in practice, it’s a disaster. It drives away investment, reduces housing supply, and violates property rights. Nevada lawmakers should reject this failed policy and focus on solutions that actually work.
Let’s keep Nevada a place where property owners can invest, developers can build, and families can find a place to call home. That’s how you solve a housing crisis—without turning to big government for answers.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
