Monday, August 23, 2021 / by Ken Couture
The state and federal suspension of eviction orders is a life-saving straw for cashless Nevadas, but a study released on Thursday found that these protective measures have hit Nevada’s economy and its homeowners.
According to a report by RCG Economics for Nevada Realtors and the Nevada Condominium Association, the economic activity generated by the residential leasing industry in the state decreased by 9% in 2020 compared to 2019, or $511 million. Based on the loss of wages and economic output, the eviction ban caused Nevada to lose approximately $12.6 million in sales and use tax revenue last year.
“This research helps us put this damage into perspective from an economic point of view,” said NVR President Brad Spires. “It reinforces what we’ve been saying throughout this pandemic about the disproportionate harm these policies have had on individual property owners who depend on rental income to survive.”
The report also found that the smallest homeowner, that is, the homeowner with up to three rental units, suffered the most financial blow, with a loss of approximately $1,870 per unit.
John Restrepo, the founder of Las Vegas-based RCG Economics, said “it was really striking to us how much more they were affected by the moratorium.”
Meanwhile, landlords with more than 30 units missed nearly $350 in revenue per unit. On average, landlords lost about $422 per unit between March 2020 and February 2021.
The study surveyed 140 landlords and property management firms, covering nearly 21,000 units.
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