COMMON HOUSING NEEDS IN NEVADA
The need for affordable housing is a nationwide issue, which touches Nevada deeply as well. Especially for low-income households, affordable living is more and more out of reach. Before we approach development, it is important to affirm the need across the state for more subsidized housing so that all families can find affordable, safe, decent housing and communities in which to live.
The U.S. Census Bureau indicates that the percentage of homeowners in Nevada is lower than the national average, and that the cost of rent in Nevada is higher as well. Nevada has an extreme gap in housing units available for extremely low-income (ELI) renters: there are 91,243 ELI households and only 13,025 rental homes available as of 2022. Homeownership is 60.3% as of 2022, five percent lower than nationally. On the other hand, Nevadans were paying an average of $1,461 per month on rental housing, compared to the national average of $1,300 per month.
Discrepancies in housing quality extend to affordability as well, as Nevadans pay an average of 33% of their household income toward rent. In a state where 19% of all households are extremely low-income, this burden adds up. According to 2022 data, there are an additional 78,000 housing units needed to meet demand for extremely low-income households in Nevada.
Nevada has room for additional housing, including affordable housing, as there were 103,000 vacant units in the state as of the 2020 Census. However, the vacancy rate has successfully been decreasing, from 14% in 2014 to 9.8% in 2022.
According to the National Low Income Housing Coalition, the average household income needed to afford a two bedroom apartment in Nevada is $64,203.
Percentage of Rental vs. Homeownership Units in Nevada
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Statewide |
City of Reno |
City of Las Vegas |
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Owner-Occupied Units |
60% |
67% |
63% |
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Renter-occupied units |
40% |
43% |
48% |
Source: ACS 1- Year Survey, 2022
There are regional barriers to address as well, and each municipality should have a housing needs assessment or strategic plan with more information. In Las Vegas, a Consolidated Annual Plan from 2020-2025 found that an additional 44,392 units would be needed to fully meet the demand for affordable housing in the city. Some barriers identified included 1) lack of employment 2) inability to afford rent 3) inability to afford move-in costs 4) scarcity of housing units 5) lack of transportation.
In Reno, there is a higher share of younger residents than the U.S. at large. The existing housing stock is predominantly single-family, despite higher proportion and projected future demand for renter-occupied homes. The senior population is estimated to increase by 66% in the next 20 years. Newer homes being built in Reno are priced higher than what is affordable to the average worker, and the households at or below 50% AMI have the greatest need for more affordable housing. 34 percent of households rent because they are unable to afford a home.
Finally, additional data and information for rural areas of the state can be located at the Nevada Rural Housing Authority data tool.
MAKING THE CASE FOR NEW DEVELOPMENT
Despite the needs outlined, it may not be easy to get all the stakeholders, potential residents, and political leaders on board with a new multifamily development. Many developers of affordable rental housing have to confront “Not In My Backyard” (NIMBY) attitudes as they work to get their projects developed. Historically, there has also been preference for single-family homes, as part of the “American Dream.”
Before moving forward, it is important to ensure the community, investors, political leadership, and key stakeholders are all comfortable and share the same priorities. Multi-family development has many benefits: as the population in Nevada continues to grow and the cost of living continues to rise, the importance of cultivating support for multifamily housing is crucial. Not only does multifamily housing development create more units that can serve a larger portion of the low-income population, it also more easily facilitates the provision of infrastructure such as broadband, energy, water and sewage, etc.
There are a few key benefits of multifamily housing to help make your case to your community:
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Allows for more housing to be built on a given parcel of land. For example, according to the National Multifamily Housing Council, on the same plot of land it would take to build 3 single family homes, you could build a 4-14 story multifamily building with 36 units. It also often allows greater access to jobs, transit, and other amenities. |
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Serves a wider range of needs. Multifamily housing can accommodate a wide range of unit types, locations, and price points, creating flexibility and allowing you to serve those community members that don’t meet the typical thresholds for affordable housing but are still considered cost burdened. |
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Cost-efficient and cost-effective. Development costs for multifamily housing are significantly lower than single-family housing. For LIHTC projects specifically, more costs need to be raised upfront to cover the lower monthly income (rental payments) that will result from single family development. |
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Stimulates and sustains local economies. At a national level, housing constraints and regulations are estimated to have lowered aggregate economic growth by 36 percent between 1964 and 2009 |
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Creates efficiencies in the use of public infrastructure and services. Denser development saves 38 percent on the delivery of upfront infrastructure, and 10 percent on the cost of delivering public services. |
Now that you have a better understanding of the opportunities presented by multifamily housing, we can begin to discuss strategies for community education, engagement around multifamily housing, and what home means to your community.