By james art As anyone who knows the history of the city of Reno, our moniker “World’s Biggest Small City” was coined because of our tourism, gaming and entertainment boom – despite our relatively small size. Now, more than 150 years later, our city is diverse and thriving, but our work is not yet done. To ensure Reno remains the best place to live, work and play, we must continue to “reimagine” what our city will look like for our growing population.
The population of the city of Reno has increased by more than 56,000 people since 2000 and is expected to increase by another 62,000 people in the next 20 years. Therefore, the City of Reno adopted the Reimagine Reno Master Plan in 2017. The plan outlines our goal to be a sustainable local and regional economy, to increase access to parks and transit for our residents, to reduce traffic and congestion, and to diversify housing and increase in construction.
Recent reports indicate that the nationwide housing crisis is taking a heavy toll on the city’s biggest small city. The median home price just hit a record high last month, and while rents are falling, the imbalance between the supply and demand for additional housing stock will continue to widen our housing woes for decades to come. As our population continues to grow, implementing market policies that meet our need for additional housing and infrastructure is more time-sensitive than ever.
As a former Nevada State Infrastructure Coordinator, former Washoe County Commissioner, fifth generation Nevadan and businessman, I have seen our region grow and know the kind of investment needed in our neighborhoods. The improvements we make at the federal, state and local levels are funded by tax dollars raised by the city thanks to our thriving economy. But what happens if our revenue drops or stops growing?
As they say, if we don’t grow, we die. I am deeply concerned that rumors and whispers of regional and legislative talk around rent control continue to surface. Rent control kills jobs and discourages new housing construction, and — what proponents often overlook — lowers property values, dramatically draining local and state budgets.
you don’t believe me Consider St. Paul, Minnesota. Property values fell 6-7% instantly and the city lost $1.6 billion in revenue that paid for police, parks, roads and schools. In New York, about $370 million in annual property tax revenue has been lost due to reduced taxable assessed property values in rent-controlled properties. In New Jersey? Over $3.2 billion. In Montgomery County, Maryland? The city and county budget shortfall, which was $46.1 million in 2020, is estimated to be $101.3 million annually by 2025 in property tax loss alone. This does not include an additional direct loss of $327.8 million over the same 10-year period due to unrealized sales tax and income tax. In Washington, DC, the Policy Center found that about $26 million to $115 million would be lost annually in the District of Columbia alone, depending on growth scenarios.
I would give additional examples, but there are only six states in the entire country that allow rent control laws. Even more tellingly, 34 states I forbid local municipalities not to pass rent control laws.
In Nevada, property taxes help fund services such as roads, schools and police. All of these could suffer from rent control. The City of Reno and Washoe County have a number of upcoming maintenance projects and have hundreds of millions of dollars planned to address critical infrastructure needs for our residents. To keep our future shining as brightly as the neon signs downtown, there is no room for rent control!
Bob Lucey is a fifth-generation Northern Nevadan. He is a former Washoe County Commissioner and Infrastructure Coordinator for the State of Nevada. He has been a local business owner for over 20 years and is a proud husband and father who wants to protect, preserve and plan for the future of our state.
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