Nevada is Struggling in Affordability and Homebuilding: Can Governor Lombardo Turn It Around?

Nevada’s housing story is one of extremes—high demand, limited supply, and soaring costs that have pushed many residents to the sidelines.

Realtor.com® State-by-State Housing Report Card gave the Silver State a C-, underscoring the challenge of balancing growth with affordability. The report, part of the Let America Build campaign, measures how states are performing on both fronts: current affordability and new construction activity.

But this is a national problem. In fact, President Donald Trump recently put pressure on homebuilders to increase construction nationwide, given the issues with construction in the country. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices—likening them to OPEC, which restricts oil output to maintain high prices.

“They’re my friends ... but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and “get Big Homebuilders going” to “restore the American Dream.” 

Nevada’s results show a housing market where progress on supply has lagged behind population growth, leaving affordability stretched thin. So what can local government do next?

Nevada’s “C-” grade explained

Realtor.com analysis gave Nevada a total score of 45.7, placing it near the lower end of national rankings. The state’s median listing price was $492,789 in 2024, while the median household income stood at $71,942. The Realtors Affordability Score came in at 0.49, reflecting how rising costs have made ownership increasingly out of reach for middle-income families.

On the construction side, Nevada accounted for 1.4% of all U.S. housing permits last year, compared with 1.0% of the nation’s population—a permit-to-population ratio of 1.4. That’s a sign that builders are trying to keep up, but rising costs, material shortages, and permitting delays have kept new supply below what’s needed. The new construction premium—the price gap between new and existing homes—was 19.2%, showing that newly built homes remain far more expensive than older listings.

Economists at Realtor.com note in the report that the state’s rapid population growth and limited developable land have created structural barriers to affordability. Even modest interest rate increases have a disproportionate impact in markets like Las Vegas, where prices are already high relative to local incomes.

The West’s affordability crunch

According to the Realtor.com New Construction Insights, new construction across the U.S. is providing some relief for homebuyers. The median new-home price held steady at $450,797, while resale prices rose 2.4%—narrowing the national new construction premium to just 7.8%, the lowest on record.

But those national gains have yet to reach the West. The region continues to face high material costs, zoning constraints, and lengthy approval timelines. The Realtor.com analysis found that the West saw the steepest drop in the share of new-construction listings compared with last year, even as the number of homes under construction grew. This disconnect reflects how expensive it remains to bring new housing to market.

In Nevada, those challenges are amplified by the high proportion of federally owned land, which limits developable acreage and drives up costs in cities like Reno and Las Vegas. But again, this is happening across the country for similar reasons.

“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies," says Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®.

"NAR research shows that the U.S. has faced a persistent housing shortage for more than a decade, driving up prices and limiting options for buyers. Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”

Governor Lombardo’s push for attainable housing

Governor Joe Lombardo has made housing a key priority, signing Assembly Bill 540 in 2025 to accelerate permitting and expand housing options for middle-income residents. The law directs $133 million toward developing a new tier of “attainable housing” designed for households earning up to 150% of area median income.

The bill also streamlines review processes for housing projects, aiming to get shovels in the ground faster. While industry leaders praised the governor’s initiative, some cautioned that high interest rates, construction tariffs, and land-use restrictions could limit its near-term impact. “The governor’s housing bill is a step in the right direction, but it’s a piece of a much larger supply challenge,” said Tina Frias, CEO of the Southern Nevada Home Builders Association, during a housing policy panel earlier this year, according to the Nevada Independent.

By creating a new category of housing between affordable and market-rate, Lombardo hopes to help middle-income workers—teachers, nurses, and first responders—find homes within reach of their paychecks. It’s an ambitious plan, but one that depends on sustained collaboration between local governments, developers, and state agencies.

This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.