(Amy Groves) – If you followed the Nevada Legislature last session, you saw heated debates over rent control. It’s a hot topic for good reason. Rent prices have been climbing for years, leaving many Nevadans feeling the pinch.
But how to fix it?
That’s where the battle lines were drawn. Democrat lawmakers pitched a bill to cap yearly rent increases. It’s called “rent control.” With rents climbing and outpacing wage growth, some thought this was a solution.
But dig a little deeper, and the flaws become clear.
For many—especially conservatives—the proposal was more about feel-good politics than effective solutions.
Republican Governor Joe Lombardo, a strong advocate for limited government, took a clear stance. He vetoed the rent control bill, sending a loud and clear message: the government shouldn’t meddle in how much landlords charge.
His veto wasn’t just about one bill. It was about protecting free markets and preventing unintended consequences.
The Rent Control Proposal
The bill in question was Assembly Bill 305. It aimed to cap rent hikes at 5% per year, plus inflation, for certain properties. Supporters argued this would protect tenants from sudden rent spikes that could force them out of their homes.
Currently, only three states and a few cities have rent control policies. New York and California’s regulations focus on local ordinances for specific cities. Oregon, however, stands alone with a statewide cap on rent increases at 7% plus inflation.
Rising rents in places like Las Vegas were cited as proof that action was needed. For many struggling to get by, rent control sounded like a lifeline.
But here’s the rub: rent control doesn’t address the real problem.
It’s a Band-Aid solution that ignores the root cause of rising rents—a lack of housing supply. Without tackling that issue, rent control only adds fuel to the fire.
Why Conservatives Oppose Rent Control
Conservatives argue that rent control messes with the free market. When the government caps rents, it throws supply and demand out of whack. In a healthy market, prices reflect what people are willing to pay. If rents go up, it’s often because demand outweighs supply.
Landlords might hike prices elsewhere, neglect maintenance, or take units off the market altogether. This would shrink the housing supply and leave tenants worse off. Governor Lombardo echoed these concerns, saying:
“Rent control sounds good in theory, but in practice it limits options for renters and can lead to a decrease in the overall supply of housing.”
He also called the bill “an unreasonable restraint on standard business activity,” warning it could lead to housing shortages and less property upkeep.
Senator Jeff Stone, a Republican and property owner, added that rent control could create a “cycle of unaffordability,” ultimately hurting those it aims to help.”
Republcian Assemblywoman Alexis Hansen also questioned the effectiveness of rent control, stating:
“I do not think rent control is the right approach. It could have unintended consequences, like reducing housing stock and discouraging investment in new developments.”
Until more homes are built, rents will stay high. Rent control is a quick fix that creates more problems than it solves.
Real Solutions for Nevada’s Housing Crisis
Governor Joe Lombardo has been vocal about addressing Nevada’s housing challenges through actionable, long-term solutions. In a letter to President Joe Biden, he highlighted the importance of making more public land available for residential development.
Lombardo stated:
“The federal process for privatizing land for development is too slow, too complex, and contributes to higher costs for Nevada families seeking homeownership.”
With 85% of Nevada’s land under federal control, Lombardo has called for streamlining the release of BLM land to increase housing supply. He has also backed bipartisan efforts like the Accelerating Appraisals and Conservation Efforts (AACE) Act, which aims to cut federal red tape and expedite land transactions.
These efforts complement his push to reduce regulatory barriers and encourage public-private partnerships, all aimed at tackling the root causes of the housing crisis.
Looking Ahead
So, what’s next?
Lombardo’s veto may have killed the bill last time, but the need for more housing is a pressing issue. Lawmakers will likely bring back a rent control bill or similar ideas in the upcoming session.
Conservatives argue for long-term fixes, not quick patches. They want to reduce building costs by cutting red tape, easing zoning rules, and giving developers incentives to build affordable homes.
Rent control may sound good on paper, but the reality is far from it. If we want real solutions, we need to focus on building more homes, not more regulations.
Ms. Groves is director of the Coalition for Housing Freedom. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
