We look at Nevada’s rental hikes and their quest for affordable housing.

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Does it seem like Nevada’s rental price hike will never stop? You’re not alone—the rising rent has been a hot topic of discussion among Nevada residents. That’s why I’m here today to explain the four reasons behind Nevada’s skyrocketing rent and our local leaders’ initiative to improve housing affordability:

 

1. Landlocked state. One major issue in Nevada is that it’s landlocked. The Bureau of Land Management owns the majority of the land in Nevada and sells it to developers at exorbitant prices, making it difficult to build affordable housing.

 

2. Hedge funds. Las Vegas has become a prime target for hedge funds, which buy up properties, driving out middle-class homeowners and creating corporate landlords. These corporate landlords tend to be more challenging to deal with. Addressing this issue, as has been done in Georgia and Hawaii, will be crucial in the next legislative session.

 

3. Complex leases. Corporate leases can be extremely lengthy, sometimes reaching 40 pages, compared to typical nine-page leases like what we usually use. This makes it harder for tenants to advocate for their rights, especially when they have to deal with corporate lawyers when they try to protest the terms.

 

Las Vegas has become a prime target for hedge funds.

 

4. Inflation. Inflation has also played a significant role in the rental hikes across Nevada. The rising costs of goods and services have had a ripple effect on the housing market, mainly due to the increase in prices of construction materials, labor, and other essential resources that have become more expensive, driving up the overall cost of building new homes and apartments. Additionally, the permitting process in Nevada is notoriously lengthy and complicated, which further adds to the problem.

 

Generally, the primary issue that needs to be addressed is acquiring land at reasonable costs so developers can build more housing. Increasing the housing supply will help meet demand and naturally lower housing prices. That’s why, recently, Governor Joe Lombardo sent a letter to President Joe Biden to ask for help in cutting the red tape with the Bureau of Land Management to obtain land more affordably and quickly. Senator Jacky Rosen has also supported this request and is working on a bill to return some land to Nevada to pave the way for affordable housing development projects.

 

Thankfully, we are starting to see hope in the situation, and the future of Nevada’s real estate looks brighter. So, if you have any questions about this or about real estate and property management in the area, please feel free to reach out to me by calling 725-220-GRIP or email me at danielle@griplv.com. I look forward to hearing from you!