Key Issues

Key Issues Driving Nevada’s Housing Affordability Crisis

Housing is the foundation of our society, providing security, stability, and community. Access to housing is tied to better health, education, public safety, and economic prosperity.

Yet, more than 8 in 10 Nevada households can’t afford the median price of a new home. Over 7 in 10 African-American households are cost-burdened, and since 2018, average rents have risen by over 55% in Clark County and 46.5% in Washoe County. It’s clear, we can’t afford to make housing even more expensive.

As Nevada faces a growing housing affordability crisis, several key issues demand urgent attention from lawmakers.

Rising Demand and Lack of Supply

Rising demand for housing, combined with a severe shortage of supply, is driving up costs and making homeownership less accessible for many Nevadans. Despite rapid population growth, the number of new homes has not kept pace, leaving more than 113,000 low-income households without affordable housing. Additionally, flaws in Nevada’s construction defect laws, from the late 1990s until 2015, removed essential protections for homeowners and further reduced the housing supply.

Total number of closings, Southern Nevada new home market

Source: SalesTraq. Note: Data as of December of each year, except for 2013 and 2024, which are as of September of the given year. Condo and townhouse count excludes hi and mid-rise condos.

Land Availability

Bureaucratic red tape is limiting Nevada’s housing supply. Outdated regulations, high fees, and the federal government’s reluctance to release land for development are driving up costs and blocking homeownership. With 85% of Nevada’s land federally controlled, space for new homes is severely restricted. Federal land is only available for housing if transferred to local jurisdictions or sold at auction. Without action, Southern Nevada’s land supply for new homes could run out by 2032.

Watch this video to learn more about how limited land availability is driving up housing costs and limiting opportunities for new homebuyers.

Construction Costs

Rising construction costs are driving up home prices. Material costs have surged, causing home prices to rise more than 2.5 times faster than income growth. Unlike other Mountain West states, Nevada’s construction workforce has not yet returned to pre-recession levels making it even harder to build new homes at an affordable price.

Watch this video to learn how construction defect litigation, before 2015, contributed to higher construction costs.

Read the latest report: A Review and Analysis of the Regulatory History and the Impacts on Housing Affordability.

Regulatory Hurdles

Regulatory hurdles and complex zoning laws are slowing the development of multi-family housing, particularly in Clark County. Despite Reno and Sparks being only a quarter of the size of Las Vegas, they built 15% more multi-family housing than Las Vegas, Henderson, and North Las Vegas combined.

Nevada’s housing stock is lacking “missing middle” housing like duplexes and triplexes. High development fees and slow approval processes discourage developers from pursuing affordable housing projects due to the added financial strain.

Watch this video to learn how regulatory challenges and government fees are driving up housing costs.