President Donald Trump’s proposal to unlock federal land for affordable housing has sparked renewed debate in Nevada—where more than 80 percent of the land is controlled by the federal government. The idea, which would require Congressional action, could have sweeping implications for states like ours that face severe land and housing shortages.
“Nevada would tremendously benefit from the release of federal land for housing,” Governor Joe Lombardo told Newsweek, citing that Reno could run out of buildable land by 2027 and Las Vegas by 2032. With inventory levels unable to keep pace with demand, opening up underutilized federal land is gaining bipartisan attention.
Nevada’s Housing Crisis in Numbers
Nevada ranks second in the U.S. for cost-burdened renters and sixth for homeowners spending more than they can afford on housing. A report by the Guinn Center found that 58 percent of renters in Nevada spend more than 35 percent of their income on housing. At the same time, local wages have failed to keep up with rising rents and home prices.
Between 2019 and 2023, rent in Las Vegas rose 34 percent while wages increased just 14 percent. Meanwhile, home prices continue to climb—median home prices in Las Vegas hit $440,000 earlier this year, up 66 percent from 2020.
What's Driving Demand?
A major factor compounding the housing shortage is the influx of out-of-state buyers, particularly from California. These buyers typically earn more and are able to offer above-market prices, further squeezing locals out of the market.
According to the Lied Center for Real Estate at UNLV, the average income of newcomers to Nevada was nearly double that of local residents, fueling bidding wars and escalating home prices.
The Role of Federal Land
Much of Nevada’s undeveloped land is federally owned and off-limits for residential development. Advocates for land reform argue that only a fraction—roughly 10 to 15 percent—of that land would be needed to make a significant difference in solving the housing crisis. Even limited access to these areas could free up millions of acres for thoughtful, sustainable development.
Matthew Hoyt, President of NAIOP Southern Nevada, highlighted the imbalance: “Imagine trying to build a city while only having access to 12 percent of the land.” That’s the case in Clark County, where 88 percent of the land is under federal control.
Trump’s Proposal and Its Local Impact
Trump’s plan calls for using federal land to build affordable housing across the country. While still conceptual, the policy could result in a monumental shift for states like Nevada. Locally, it has accelerated calls for faster action. Lawmakers like Rep. Susie Lee and Sen. Catherine Cortez Masto are backing bipartisan legislation, like the Accelerating Appraisals and Conservation Efforts (AACE) Act, aimed at speeding up land transfers and appraisals.
The Biden administration has taken some steps, such as authorizing the sale of 20 acres of public land in Southern Nevada for $100 per acre. But local leaders argue that this is not nearly enough to meet the state’s growing needs.
According to experts, Nevada is already short more than 100,000 housing units. If trends continue, Clark and Washoe Counties will run out of private developable land within the next decade. A recent study from the American Enterprise Institute found that 1.5 million homes could be built on BLM land within two miles of Las Vegas city limits alone.
Challenges Ahead
Despite support, hurdles remain. Complex federal regulations—especially those under the National Environmental Policy Act (NEPA) and the Federal Land Policy and Management Act (FLPMA)—can delay development by years. Governor Lombardo and others are calling for reforms to simplify the land transfer process without compromising environmental protections.
Critics of Trump’s plan warn against the potential for overdevelopment and environmental harm. Supporters argue that with thoughtful planning, Nevada can build needed housing while preserving natural beauty and public lands.
For Reno-Tahoe, the possibility of opening federal land for development could reshape the future of housing. As affordability challenges mount and inventory dwindles, this conversation is more urgent than ever.
Whether Trump’s plan materializes or not, the momentum is building—and with it, a renewed focus on how Nevada can meet its housing needs without compromising its future.
As a local real estate professional, I’ll continue to follow this topic closely and advocate for solutions that support our community. If you’re curious about how these changes could affect buying, selling, or investing in Reno-Tahoe, let’s connect and navigate the road ahead together.
For more information please visit : www.newsweek.com/donald-trump
Photography Credit : www.newsweek.com
