{"id":2269273,"date":"2024-06-17T05:35:02","date_gmt":"2024-06-17T09:35:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nevadas-housing-crisis-where-the-problem-came-from-and-why-experts-dont-like-bidens-approach\/"},"modified":"2024-06-17T05:45:04","modified_gmt":"2024-06-17T09:45:04","slug":"nevadas-housing-crisis-where-the-problem-came-from-and-why-experts-dont-like-bidens-approach","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nevadas-housing-crisis-where-the-problem-came-from-and-why-experts-dont-like-bidens-approach\/","title":{"rendered":"Nevada&#8217;s housing crisis origins and expert criticism of Biden&#8217;s strategy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnevadas-housing-crisis-where-the-problem-came-from-and-why-experts-dont-like-bidens-approach%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2269273&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In Nevada,\u200c housing\u200c prices have surged due to\u2064 a significant influx of new residents, \u200dnotably from California, combined with an insufficient growth in housing\u200c supply. This stark \u2062imbalance between supply and demand has \u2064led \u200dto a crisis marked by escalating home and rental prices. Nevada&#8217;s Governor Joe Lombardo \u2062highlighted the deficit\u2063 of about 84,000 housing \u200bunits in the state. While the Biden administration focuses on federally\u2063 subsidized affordable housing to address the crisis, with significant \u200dfunds allocated from the\u2064 American Rescue Plan, critics argue that this approach might actually exacerbate the problem by inflating prices further.<\/p>\n<p>Experts like Roger Valdez of the Center for \u200cHousing Economics suggest \u2063that expanding housing availability \u200cgenerally, rather than imposing\u200c more affordable \u2062housing projects or regulations, would lead to a more balanced and affordable housing market. He and Governor\u2062 Lombardo criticize excessive regulation and \u200dfederal spending, advocating for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/10-things-the-u-s-can-start-doing-right-now-to-counter-chinas-dominance\/\" title=\"10 Things The U.S. Can Start Doing Right Now To Counter China\u2019s Dominance\u00a0\">free-market solutions<\/a> to boost housing production and reduce prices. Additionally,\u2063 debates continue around approaches like eliminating exclusionary zoning\u2064 and \u200bcontrolling rent increases, with differing opinions on their effectiveness in combating the soaring living costs \u2062in Nevada.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>As Democrats and Republicans pitch their hot-button talking points this <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/2024-elections\/\" target=\"_blank\" rel=\"noopener\" title>election<\/a> cycle, voters in <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/Nevada\" target=\"_blank\" rel=\"noopener\" title>Nevada<\/a> might want to hear a little more about one issue that hits even closer to <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/housing\/\" target=\"_blank\" rel=\"noopener\" title>home<\/a>: Housing. <\/p>\n<p>Nevada is facing some of the highest housing prices in the nation. Debate around how to solve it comes down to a fundamental difference in worldview. Will more regulations, rent controls, and federally subsidized affordable housing fix the problem? Or is expanding free market solutions the answer to bringing down housing costs?<\/p>\n<p>Nevada\u2019s housing shortage is caused, in part, by a flush of new residents, many from neighboring <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/California\" target=\"_blank\" rel=\"noopener\" title>California<\/a>. Since 2020, 158,000 Californians have flocked to Nevada, now making up 43% of all new Nevada residents in the last four years. Additionally, the Nevada Department of Motor Vehicles states that approximately 250,000 Californians moved to Nevada between 2015 and 2019, which was more than any other state. Ironically, although many Californians left the Golden State in search of cheaper housing, Nevada\u2019s housing prices have soared as the supply of housing has failed to keep up with the increasing demand.<\/p>\n<p>Last year, Nevada governor and then-gubernatorial candidate Joe Lombardo <a href=\"https:\/\/www.joelombardofornv.com\/affordable-housing\" target=\"_blank\" rel=\"noopener\" title>said<\/a> his state was short at least 84,000 housing units, saying Nevada is \u201clast in the country for its number of affordable and available rental units.\u201d A 2022 <a href=\"https:\/\/bipartisanpolicy.org\/report\/housing-supply-trends-50-states\/\" target=\"_blank\" rel=\"noopener\" title>study<\/a> by the Bipartisan Policy Center found that while Nevada\u2019s statewide population had increased by nearly 434,000 residents from 2010 to 2020, the housing supply had grown by only about 131,000 homes.<\/p>\n<figure><figcaption>Clark County Sheriff and Nevada Gov.-elect Joe Lombardo gives a victory speech during a news conference, Monday, Nov. 14, 2022, in Las Vegas. Lombardo ran against incumbent Nevada Gov. Steve Sisolak. (AP Photo\/Ellen Schmidt)<\/figcaption><\/figure>\n<p>In response to a dwindling supply of homes, housing prices have soared. Redfin states that Nevada\u2019s home prices were up over 7% from last year in May. Since 2016, home sale prices in Nevada\u2019s Clark County have <a href=\"https:\/\/www.latimes.com\/politics\/story\/2024-04-09\/biden-trump-california-housing-crisis-nevada-arizona\" target=\"_blank\" rel=\"noopener\" title>risen<\/a> by 50%, and median rental prices in the county, which is home to Las Vegas, are still 30% higher than they were before the pandemic, according to Apartment List. A University of Nevada at Las Vegas study also found that seven of the 10 most common jobs in Las Vegas don\u2019t pay enough to afford a studio apartment. <\/p>\n<p>There is a unanimous consensus that Nevada\u2019s soaring housing prices are driven by an imbalance of supply and demand. In March, President Joe Biden said at a Las Vegas event,\u00a0\u201cTo solve [housing shortage] long term, we have to increase supply because when supply is down, demand is up, costs rise.\u201d<\/p>\n<p>\u201cThe bottom line to lower housing costs for good is to build, build, build,\u201d he said. <\/p>\n<p>The debate begins with the kind of housing to build and who will pay for it. <\/p>\n<p>In Nevada, the Biden administration, and some of the state\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/alaskan-lawmakers-blast-bidens-outrageous-decision-to-halt-arctic-drilling\/\" title=\"Alaskan Lawmakers Blast Biden\u2019s \u2018Outrageous\u2019 Decision To Halt Arctic Drilling\">top elected officials<\/a> have focused on building federally subsidized affordable housing. President Biden\u2019s American Rescue Plan allocated <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2024\/03\/19\/fact-sheet-in-nevada-president-biden-to-double-down-on-plan-to-lower-housing-costs-and-increase-housing-supply-for-american-families\/\" target=\"_blank\" rel=\"noopener\" title>$1 billion<\/a> towards bringing down housing prices in the Silver State, $700 million of which was directly targeted to support major affordable housing projects. In Nevada\u2019s Clark County, where housing is the hardest to afford, Biden\u2019s subsidies have resulted in several pending major 200-unit affordable housing developments. <\/p>\n<p>Ahead of Biden\u2019s March visit to Reno, he announced plans to expand \u201ctens of thousands\u201d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cindy-axne-demands-rich-pay-their-fair-share-days-after-report-on-colleagues-tax-avoidance\/\" title=\"Cindy Axne Demands Rich Pay Their Fair Share Days After Report on Colleague\u2019s Tax Avoidance\">affordable housing units<\/a> \u201cright here in Nevada\u201d by expanding the Low-Income Housing Tax Credits. The program, which subsidizes developers for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/qa-with-gop-colorado-senate-candidate-joe-odea\/\" title=\"Q&#038;A With GOP Colorado Senate Candidate Joe O\u2019Dea\">building affordable housing<\/a>, would direct $20 billion to build affordable multifamily units across the country. <\/p>\n<p>Is building more affordable housing units going to bring housing prices down in Nevada? Roger Valdez, Director of the Center for Housing Economics and a Research Fellow at the Foundation for Research on Equal Opportunity told the Washington Examiner, \u201cWe don\u2019t need more affordable housing. We need more housing so it\u2019s more affordable.\u201d<\/p>\n<p>The more money the government adds to the housing market with affordable housing subsidies, the higher prices will be, Valdez said, adding, \u201cThat\u2019s the basic rule of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/economics\/\" target=\"_blank\" rel=\"noopener\" title>economics<\/a>: more money means more inflation.\u201d<\/p>\n<p>Nevada\u2019s governor echoed Valdez\u2019s concerns about the Biden administration\u2019s strategy to pour money into the housing market. In April, Gov. Lombardo said the Biden administration\u2019s \u201cexcessive\u201d federal spending\u201d was contributing to soaring inflation and high inflation rates. <\/p>\n<p>At the time, Lombardo said the Biden administration\u2019s failure to embrace the free market was at the heart of what is driving the housing shortage, and \u201ctearing at the very fabric of our state.\u201d \u201cMr. President, it is time for your administration to embrace free market principles that rely upon supply and demand and rein in excessive federal spending that is hurting Nevada families,\u201d the governor begged. <\/p>\n<p>Valdez fears that, from zoning regulations and rent controls to affordable housing mandates funded with taxpayer dollars, the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/government\/\" target=\"_blank\" rel=\"noopener\" title>government<\/a>\u2019s efforts to lower housing pricing are having a counter effect.<\/p>\n<p>\u201c[The government says] let\u2019s dump money on it [ the housing crisis]. Let\u2019s create an entitlement program called affordable housing, where we build housing and then charge less for it. But the problem is that the pace of construction of those affordable housing units can never keep up because it\u2019s even harder to build, because it\u2019s even more regulated than the market rate housing. So what we end up doing is, we create all these constraints and limits on what can be produced. We artificially create higher prices, with the regulation, and then we complain about it,\u201d Valdez told the <em>Washington Examiner<\/em>. <\/p>\n<figure><figcaption>President Joe Biden speaks at the Washoe Democratic Party Office in Reno, Nev., Tuesday March 19, 2024. (AP Photo\/Jacquelyn Martin)<\/figcaption><\/figure>\n<p>Lombardo has brought up another issue he says contributes to Nevada\u2019s high housing prices. He blames intensive federal ownership of Nevada\u2019s land as part of the factor contributing to high housing prices. The federal government owns over 85% of Nevada\u2019s land. The governor says \u201cby making federal lands available, Nevada could increase its housing supply and address shortages, which would ultimately drive down costs.\u201d<\/p>\n<p>Valdez agrees that while land is important, it\u2019s not the biggest factor at play.\u00a0 \u201cIt\u2019s primarily zoning and regulatory overreach that limits and increases cost,\u201d the housing expert told the <em>Washington Examiner<\/em>. He says imposing more <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/regulations\/\" target=\"_blank\" rel=\"noopener\" title>regulations<\/a> creates a vicious cycle. When residents are unhappy with housing prices, the government steps in to try to lower them by imposing rules on landlords, builders, and developers. Valdez says this drives the cost of production even higher, disincentivizes builders from creating new housing, and creates even higher prices. <\/p>\n<p>In a statement to the <em>Washington Examiner<\/em>, housing expert Halley Potter agreed that zoning regulations drive up housing prices. <\/p>\n<p>\u201cExclusionary zoning policies artificially drive up housing prices by limiting the construction or conversion of more affordable homes such as apartments and backyard cottages,\u201d said Potter, a senior fellow\u00a0and director of PK-12 education policy at The Century Foundation. <\/p>\n<p>During an interview with the <em>Washington Examiner<\/em>, Potter argued that eliminating exclusionary zoning should have broad political support. \u201cThere\u2019s a really strong libertarian case for getting rid of exclusionary zoning that determines who can build what, where. There\u2019s also a progressive case to get rid of exclusionary zoning because it is unfairly locking low-income families out of different neighborhoods,\u201d Potter said. <\/p>\n<p>Rent controls are another option Nevada\u2019s elected officials have considered to offset rising housing costs.\u00a0In 2022, then-Governor Steve Sisolak decided that was the best course to bring housing prices in Nevada. At the time, the median price of a home in Las Vegas in May was <a href=\"https:\/\/nevadacurrent.com\/2022\/06\/30\/sisolak-legislature-may-take-up-rent-control\/\" target=\"_blank\" rel=\"noopener\" title>$482,000<\/a>, up 25% from 2021, and the median price of a home in the Reno\/Sparks area was $605,000, up 23% from the previous year. The governor threw his support behind a ballot measure to limit rent increases to a maximum of 5% or the cost of living, whichever was less, saying, \u201cI think there\u2019s an awful lot of support for this. And if I\u2019m right, and the people do support it, we\u2019re going to be addressing this in the [legislative] session.\u201d<\/p>\n<p>Valdez says while price controls sound good in theory, in practice, they don\u2019t play out so well. <\/p>\n<p>\u201cPrice controls always have the effect of creating inflation. Because what happens is it disincentivizes production, but then lack of production causes scarcity prices to go even higher,\u201d the housing expert said. \u201cAnd then the higher prices rationalize the offset [more rent controls].\u201d<\/p>\n<p>Valdez believes that the solution to the housing crisis is to introduce choices to the housing market. According to Valdez, choice breeds competition, and competition drives prices down. He says this can only happen when regulators get out of the way. \u201cThe easiest way to solve [the housing crisis] is to get out of the way of the production, and then people will be able to have better leverage over the market because they\u2019ll have more choice.\u201d <\/p>\n<p>\u201cWith housing, we\u2019ve regulated in such a way that your choices are so limited and that includes what you\u2019re going to pay for it,\u201d Valdez said during an interview with the <em>Washington Examiner.<\/em> \u201cSo we just need to get out of the way of the limits to production, increase supply, incentivize more supply, and then we\u2019ll see prices rationalize.\u201d<\/p>\n<p>Potter disagrees. When the <em>Washington Examiner<\/em> asked her if freeing up developers and builders to create more market-rate housing would drive prices down, she said it would take too much time. \u201cI think we need something that can happen faster,\u201d she said. \u201cThat means continuing and expanding some of the programs to have explicitly inclusionary zoning and affordable housing requirements that are embedded into development.\u201d<\/p>\n<p><a href=\"http:\/\/washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/strong><\/a><\/p>\n<p>Valdez agrees that allowing the market to run its course takes time and that freeing developers and builders to build market-rate housing is unpopular. \u201cWhen you\u2019re trusting the market to produce more, it not only takes time, but it\u2019s uneven,\u201d\u00a0Valdez told the<em> Washington Examiner<\/em>. He says the hustle to gain voters\u2019 favor with immediate and tangible solutions pushes elected officials to an easy way out. \u201cPoliticians can get in front of the big ribbon and cut the ribbon and watch people moving into [affordable housing units] and say, \u2018I did something to solve this problem,&#8217;\u201d Valdez said.<\/p>\n<p>A recent <a href=\"https:\/\/pro-assets.morningconsult.com\/wp-uploads\/2024\/05\/Bloomberg-Election-Tracking-Wave-8-Toplines-Crosstabs.pdf\" target=\"_blank\" rel=\"noopener\" title>poll<\/a> found that 51% of Nevada residents considered housing to be very important going into the presidential election, more than issues including abortion, climate change, the Russia-Ukraine war, or guns. <\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As election season heats up, Nevada voters are keenly interested in a pressing local issue: housing. With some of the highest housing prices in the nation, the debate in Nevada focuses on fundamental solutions to this escalating crisis. Both Democrats and Republicans are pitching their solutions to address these soaring costs<\/p>\n","protected":false},"author":3142,"featured_media":2269274,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/AP24079666201638.jpg.optimal.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2269273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/AP24079666201638.jpg.optimal.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2269273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3142"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2269273"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2269273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2269274"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2269273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2269273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2269273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}