Housing Affordability in Nevada: An Economic Analysis and Policy Considerations

For over a century, Nevada has been one of the nation’s fastest-growing states. From 1940 to 2010, it led the country in population growth for 70 consecutive years. Keeping pace with this demand requires continuous and strategic housing development. However, disruptions to homebuilding—such as those caused by the Great Recession and COVID-19 pandemic—can take years to overcome. Since 2010, Nevada has gained an average of 24,000 new residents annually, yet housing supply has struggled to keep up.

The state now faces a severe housing affordability crisis, driven by a persistent supply-demand imbalance. Rising construction costs, outdated zoning regulations, and slow permitting processes have worsened the problem. Additionally, federal land ownership limits available development space, while an influx of wealthier out-of-state buyers and low wages in the hospitality sector further strain affordability.

Five years after the legislative interim study on affordable housing—and four years after the COVID-19 pandemic reshaped the housing landscape—there was broad consensus that a new study on housing affordability in Nevada would help inform decision-making. This report offers policy considerations to address the state’s affordability challenges. While it touches on the important issue of housing stability, its primary focus, as outlined in the project scope, is an economic analysis of overall housing affordability.

Some key findings in the report include:

• Nearly half of Nevada’s renters spend an excessive portion of their income on housing.
• Extremely low-income households have fewer affordable housing options in Nevada than in any other state.
• Housing costs have far outpaced income growth. Since 2018, every Nevada county with double-digit income growth has seen home prices rise at least 2.5 times faster.
• The state faces a skilled labor shortage. Nevada lost a significant number of construction workers during the pandemic and now has the nation’s second-lowest number of apprentices per 1,000 construction workers.
• Clark County lags in multi-family housing construction. In 2023, Reno and Sparks issued 15% more multi-family building permits than Las Vegas, Henderson, and North Las Vegas combined.
• Nevada lacks "missing-middle" housing (duplexes to five-unit properties) and Accessory Dwelling Units (ADUs), which are small secondary units on single-family lots.

The report concludes with a range of policy options, addressing both supply-side and demand-side solutions.

On the supply side, strategies include expanding access to developable land, reforming zoning regulations, streamlining permitting processes, and encouraging the construction of diverse housing types, such as "missing-middle" homes and accessory dwelling units.

On the demand side, proposed initiatives focus on strengthening housing voucher programs and increasing landlord participation to better support vulnerable populations.

Additionally, the report emphasizes the need for strong state-level leadership to collaborate with federal and local stakeholders in developing effective, data-driven policies tailored to Nevada’s unique housing challenges.

Read or download the full report below.