VICTOR JOECKS: Lombardo copies Harris on housing

Donald Trump showed how Republicans can win in Nevada. When it comes to housing, Gov. Joe Lombardo has decided to run for re-election as Kamala Harris.

On Tuesday, Lombardo released his housing proposal, Assembly Bill 540. It would give $200 million to the newly created Nevada Attainable Housing Account. The money could go toward programs such as down-payment assistance, rent subsidies and incentives for home construction. Projects to be built on land owned by the federal government may receive a preference.

If you paid attention to politics over the past year, that plan should sound familiar. It reads like a copy-and-paste of Harris’ housing plan. She wanted $40 billion in federal funding to spur new housing development. She proposed a $25,000 down-payment subsidy for first-time homebuyers. She wanted to expand rental assistance. She wanted to incentivize builders to build more starter and rental homes. She wanted to make more federal land available for housing.

The similarities are striking. Unfortunately, so are the problems.

Look at the potential handout for down payments. If the government artificially subsidizes homebuyers without any increase in supply, prices will increase. A study from the American Enterprise Institute projected Harris’ plan would boost housing prices by 4.1 percent and spike inflation. Further, it found that “the total cost to homebuyers outweighs the proposed subsidy benefit.”

It was a bad idea when Harris proposed it. It would be a bad idea if Lombardo managed to get this bill passed. The merits of a plan don’t depend on the party of the person proposing it. Most of the other handouts face similar problems.

Giving homebuilders incentives to build new homes is also an odd proposal. Home prices are at record highs. If builders aren’t building now, it’s likely not from a lack of financial incentive.

One limitation is a shortage of developable land. The federal government controls around 85 percent of the land in Nevada. In Clark County, it oversees more than 4.5 million acres. In contrast, there are only about 25,000 acres available for development in the Las Vegas area. That artificial shortfall is boosting land prices and the cost of housing. Lombardo should keep pushing the Trump administration to give Nevada back its land.

Lombardo’s motivation for this proposal appears partly political. He’s running for re-election next year. Housing prices are a major concern.

But attempting to be Harris-lite on housing has a major downside. If voters believe government intervention provides a long-term fix to Nevada’s housing problems, they can just vote for a Democrat.

Lombardo would be better off explaining why the left’s plans sound good on the surface but end up making things worse. He’s going to have to make that argument anyway after vetoing rent-control legislation last session.

This can work, and Trump proved it. Trump won Nevada by running on a strong conservative platform. But Lombardo has shown little passion for winning conservative issues, such as keeping men out of women’s sports and deporting criminal illegal immigrants.

Lombardo’s housing plan is so bad that he may be looking for a new home in 2027.

Contact Victor Joecks at vjoecks@reviewjournal.com or 702-383-4698. Follow @victorjoecks on X.