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Uphill both ways: Nevadans can’t afford Nevada

Nathaniel Waugh
Nathaniel Waugh
Opinion
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for sale sign by house

Home. That most basic of constructs. For most of us, there is nothing quite as relaxing or restful as walking through our front door, taking our shoes off, pouring a delightful beverage and turning on the TV before we start thinking about what to cook or order for dinner. This private pageantry of “coming home” is a feeling as old as anyone can remember. And yet, it is something that in 2021 in Nevada is growing out of reach for many of our neighbors.

Many of us are privileged enough—I know that word can elicit negative reaction and dry heaves depending on your politics, but let’s call it what it is—to own our own home or have financial means such that absorbing a rent increase is a routine proposition. And while house prices fluctuate, rents never seem to come down once they’ve gone up — so I guess the old “what goes up must come down” adage never counted in apartment rentals. So many of our neighbors, if not out and out homeless, stand on a knife’s edge staring at that prospect every day. 

There are a couple things to unpack in order to understand just what is wrong with housing in Nevada. The economic conditions in Clark County have become such that in a recent search of homes—I am finally considering buying—I have seen some homes so small and so neglected that most buyers wouldn’t give them a second glance priced at sums near $500,000! People love to lampoon we millennials as being lazy or overly sensitive, but how should one feel when one’s local real estate market is being overheated by out-of-town investors with gobs of cash on hand? Everyday Nevadans are being increasingly blocked from the American dream of homeownership. 

I suppose I could try to just work harder in order to come up with $500,000 in cash. I mean, that’s all there is to it, right? If we want it enough, we will just work harder and longer to beat out these moneyed investors, right? Well, no, probably not. And as there is no other choice but for many hopeful first-time homebuyers to wait for a housing crash, schadenfreude has become a legitimate home buying strategy. This of course speaks to that age-old Nevada tradition: When times are bad, we swear we will never let it happen again; and when times are good, our amnesia kicks in because our returned collective wealth won’t spend itself.

For nearly an entire generation of Nevadans, owning a home is not going to be possible. So what about renting? Well, bad news there. While casinos are posting record-breaking revenues as reported by the Gaming Control Board, even “just” renting is a dubious proposition for many. According to the National Low-Income Housing Coalition’s annual Out of Reach Report, based on the current Fair Market Rent from the U.S. Department of Housing and Urban Development, to afford to rent a two-bedroom unit, one must earn $21.83 per hour (to avoid spending more than 30 percent of one’s income on housing). For people making minimum wage, that means they’d have to work 90 hours a week in order to afford a two-bedroom unit (and 73 hours a week if they rented a one-bedroom). 

When 44 percent of state residents are renters and the median income for renters is still only $17.52 per hour, is there any wonder we are having an eviction crisis? I know we all want to light a candle for the landlords who are missing out on overpriced rent, but what about for those who tomorrow or the next day could find themselves traveling between a space with a roof over their heads or being out on the street?

Which brings us to the eviction crisis. The COVID-19 pandemic has done a lot to increase the economic divide. I know the refrain: “People just need to get back to work!” Well, unless we are paying them $21.83 per hour, that won’t solve the eviction crisis. As we all know, the federal government has sent huge sums to the states to help address the eviction crisis. And credit where credit is due: While many communities have been pretty slow to get money out, the hard work going on in Clark County has been nothing short of amazing. Of the initial funds allocated by the State of Nevada for rental assistance, Clark County got 100 percent of that money out the door, and of the second allocation, it already has gotten 75 percent to renters in need. But so long as summary eviction exists and renters have no right to counsel, we have a problem.

Many Nevadans can’t buy, and increasing rents are pricing more and more people out of even the humblest of dwellings. That isn’t an eviction crisis — that is an affordable housing crisis. Without more affordable housing options, many of our neighbors will see themselves lose their homes. 

There are four fundamental principles tied to ending homelessness in our community. 

  • Affordability — The gap between ages and housing costs in Nevada is larger than ever. 
  • Inventory — The shortage of affordable housing units causes housing instability, and if rents remain substantially higher than the HUD’s fair market rent, we cannot use those federal dollars to help families who need it most. 
  • Funding — We have a $300 million funding shortfall. We need to invest locally and extend or create services, resources, and housing support.
  • Access and equity — Short and simple, we shut people out. For example, criminal background checks may feel good but those reports are not necessarily a reflection on a person’s rental trustworthiness. (When did a criminal history become a life sentence?) And though Clark County has addressed income discrimination, it is legal everywhere else to deny renting to someone solely because of their legally-sourced income.

It is bad enough that the COVID-19 pandemic has taken so many of our friends and neighbors. But now it is taking people’s dreams of homeownership and/or their rented housing. There is so much more that we as a community can do. With the American Rescue Plan Act dollars, we have a once in a lifetime chance to make a dent in making living in Nevada more affordable. And we must make Nevada more affordable. Otherwise, there will be no Nevada left for Nevadans — just for the faceless investors and corporations that continue to price us out of our own communities.

Nathaniel Waugh is a member of the Las Vegas-Clark County Library District Board of Trustees and the manager of Policy Advocacy and Training at the Nevada Homeless Alliance. He received his Master of Arts in Urban Leadership from UNLV.

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