I am fully committed to the principle of housing as a basic human right. As Governor, I will make an unprecedented, relentless effort to ensure that we end homelessness and make housing affordable to all. My goal is to make certain that every resident that wants a place to live has a place in which to live.
The State of Nevada does not legislate rent control or otherwise regulate the amount a landlord can increase rent. Since the state is silent on this “matter of local concern,” and Nevada is a “Dillon Rule” state, local municipalities and counties have the authority to legislate rent increases.
I am concerned that year-over-year rent growth is faster than in the several years preceding the pandemic. I certainly do not want this increase to contribute to the creation of more homelessness.
Post Pandemic, strained market conditions have greatly affected the rental market rate. Since January, 2022, average rental rates have increased by nearly 2 percent. The Vacancy index is beginning to increase. Although currently, still below the 6 percent pre-pandemic norm, this bodes well for rental pricing in the short term.
I am a firm believer that the free market should control essential living prices in our state’s economy. The factors of supply and demand should dictate prices. Therefore, I do not support the effort to impose rent control in Nevada.
To help prevent a drastic increase in rental rates, I will take decisive steps to increase our stock of available rental units. We will require builders of new homes and larger rental units to engage in “Linked Development” agreements with not-for-profits engaged in the rehabilitation and renovation of existing rental apartments and other rental housing in Nevada’s more traditional and rural communities.
This concept of “Linked Development” would include major housing developers, who opt in, to coordinate with their financial institutions, to ensure access to capital and favorable financing terms and rates to their linked, not-for-profit, rental unit developers. Major Developers may also leverage their economy of scales to ensure their suppliers extend the most favorable rates for building supplies, tools, and equipment to their Linked Not-For-Profits.