The Nevada State Legislature recently released a draft memo that found legislation to reduce corporate homeownership would likely be both nonpartisan and survive constitutional challenges.
This comes after Gov. Joe Lombardo vetoed attempts to reduce the number of single-family homes corporations are eligible to purchase. Lombardo has since created a working group to consider solutions regarding corporate homeownership.
Lombardo’s shift came after President Donald Trump told Congress to “ban large institutional investors from buying more single-family homes.” That same day, Lombardo announced the creation of his working group.
The 33-member group will be private. The Legislative Counsel Bureau examined other states’ attempts at regulating corporate homeownership and found there are no constitutional challenges to creating similar regulations in the Silver State.
That, however, does not eliminate the chances of legislation regarding restrictions being challenged. The LCB clarified its stance that it believes bills regarding corporate homeownership are likely to survive constitutional challenges.
The working group will probably create draft legislation that the public will then be able to weigh in on and provide input.
Stateline conducted a report that found that nearly a quarter of single-family homes sold in 2021 throughout the United States had been purchased by investors. Stateline went on to conclude that the quantity of single-family investor purchases increased from 18% in 2020 to 30% in 2021.
In 2023, State Sen. Dina Neal (D-North Las Vegas) proposed a bill that would limit corporate homeownership. The bill was later vetoed by Gov. Lombardo, who argued it would “remove millions of dollars in commerce tax revenue from businesses engaged in the sale of real estate,” and “detrimentally affect blue-collar trades by decreasing demand for new construction.” (Source)
