The 'desperate cry' for affordable housing

0:00This message comes from Easy Cater, the workplace food platform. Easy Cater helps organizations order food from favorite restaurants, meet dietary needs, and stay on budget. With employee meal programs, flexible payment options, and 24-7 customer support, all on one platform. Learn more at easycater.com. WBUR Podcasts. Boston. I mean, I've been doing this for 18 years. I have never, ever seen such a desperate cry for help for housing. Nevada has gotten so expensive that hotel and casino workers in Las Vegas can't afford their own homes.

0:50It's Friday, March 27th, and this is Here and Now, anytime from NPR and WBUR. I'm Chris Bentley.

1:01Today on the show, we're taking a whirlwind tour through Nevada for a close-up look at the economy. There are bright spots, with some rural mining towns riding high on the price of gold. Anytime you have mining, we call it a rollercoaster ride, you have peaks and valleys. Good times, bad times, good times, bad times. And this is living proof of it right here. But Nevadans are also struggling with the cost of living, especially housing. And that is one of the things that Peter O'Dowd went to Nevada to talk to people about. And he's here now to tell me a little bit more about his trip before we hear his stories.

1:37You know, Peter, we talk a lot about the economy on this show, and there's the economy of GDP and stock prices and interest rates, and then there's the economy that you and I and everyone else in the country actually experience on a day-to-day basis. You wanted to explore that economy, so to speak, right? Why was Nevada a good place to do that? Well, Nevada is, well, first of all, it's a really important swing state politically. Like it's going to play a key role in, you know, the congressional elections and more especially the presidential elections in a couple of years. So it's an important state politically.

2:14But I also think it's a really fascinating state because it's out there in the Sunbelt. You know, it's one of those states where the cities like Reno and Las Vegas, they're really fast, fast growing cities, some of the fastest growing places in the entire country. and they've got the hospitality industry, tens of thousands of workers who've got this political clout through the culinary union, lean very far to the left politically. Cities are really blue. Then you leave the cities, Chris, and all of a sudden you're in what people refer to there as the rurals, and it is incredibly, incredibly rural.

2:51And I think that plays a really important part in the culture and the politics of the state like Nevada as well. So I really wanted to explore what the economies of these two different places looked like in this key state. And it's interesting because they're really quite different. Right, exactly. Now, I remember in the Democratic primary, Bernie Sanders picked up Nevada. The cost of living has always been a salient issue politically, but really coming to the fore this midterm election year. And I know you heard from people across the political spectrum about that. we'll hear about housing in particular in a few minutes, which is something that's on everyone's minds to some extent across the country.

3:29And I confess that before I heard your reporting, I thought of Nevada as kind of like the poster child for where to find cheap housing. But that is not true, is it? Not anymore. No, Chris, that is what's so important here is I grew up in the Sun Belt in Phoenix. That's where I am now. It's sort of the same story here. These places that everyone flocked to decades ago because the weather was good and their housing was cheap and you could get a job and you didn't have to have a fancy college degree and you could still have a pretty good cost of living or a pretty good lifestyle. But especially in Nevada that focuses primarily, its economy focuses primarily on the hospitality industry.

4:09For folks who are making like$56 ,000 a year, you know, God, housing is so incredibly expensive. It's completely out of reach. And just one anecdote that I'll share with you, Chris, I drove around town a lot this trip. I've been there many times reporting. But this time I was taking Ubers and Lyfts the whole time. Every single Uber driver that I got was a casino and hotel worker who was moonlighting a second shift trying to make extra money. And I think that tells you a lot about what the economy is like. Yeah, absolutely. And they were actual drivers, not Waymos like are all over Phoenix, right?

4:45Yeah, that's right. Real human drivers. I mentioned a few times, I think, that Nevada kind of speaks to what's happening all over the country. But it's also got some particular quirks in its economy that are a little more unique, like the huge hospitality and casino industry that you mentioned, or mining, which plays a really big role in the culture and economy of Nevada. And those industries specifically are going through a lot of changes right now, aren't they? Well, the mining industry, the minerals industry, has always been a big deal in Nevada. So you've got hospitality and mining driving the economy, and the rural economies really sort of feel the benefit of a mining economy or the new mines.

5:25And with the Trump administration, as soon as he came into office last year, President Trump said, I want to expedite as much as possible, fast track critical mineral exploration across the country. And Nevada is sort of ground zero for that. It's everywhere for everything from like geothermal energy to lithium to gold and silver. All these things are there. And so folks who are watching the economy, their own local economies in the rural part of the state, are really hoping that what Trump has done will help develop new mines, new extractive industries all across the state. And so, yeah, that's critical.

6:03But it's also kind of dangerous because the price of these materials goes up and down, you know, pretty drastically. And, you know, Trump didn't promise to expedite stuff all he wants, but, you know, sometimes just the economics of the market are at play. So if the cost of gold drops precipitously, even though it's been up, you know, that kind of changes some of the fortunes, quite literally. Yeah, and especially in places like Tonopah, which we'll hear about in just a minute. Let's go to a break. And when we come back, you're going to take us to a town where new minds have a lot of promise for one small rural community in Nevada.

6:38Peter, thanks. Thank you.

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8:22If you blink, you'll miss it on the seven-hour drive from Reno to Las Vegas. But if you've got time to stop, you'll find a charming little place that says a lot about Nevada itself. It was built on the promise of silver and gold. This is the reason why Nevada is still a state. Jeff Martin at the Tonopah Historic Mining Park knows all about it. We're on the side of a mountain a few blocks from Tonopah's main drag. Mining equipment is scattered about, crusted with a century of rust. Get a little bit of a look up here real quick. You can see the Desert Queen. Up the mountain here? Yep, that's the Desert Queen.

8:57What's that equipment that's coming out of the mountain? So that's a head frame. That's what these structures are. And that's where they hoist the material from the deeper depths and bring it out. 120 years ago, this place was crawling with miners. It was dangerous work and loud. This miniature model of a stamp mill doesn't sound like much today, but Martin says the originals were monsters that crushed ore from these mountains all day long. 24 hours a day, seven days a week. The only time it didn't run was Christmas Day. The mines in town went quiet long ago. But generations later, digging metal out of the earth is still a multi-billion dollar cog in Nevada's economy.

9:40It's the top gold-producing state in the country. Anytime you have mining, you're always going to have, we call it a roller coaster ride. You have peaks and valleys. Good times, bad times. Good times, bad times. And this is living proof of it right here. What kind of times are we in now? We are in good times. That's because the price of gold and silver are soaring. And there's a president in the White House eager to greenlight the development of critical minerals. I feel like we're in a boom right now at the beginning of it. Town manager Joe Westerlund grew up in Tonopah. He wears a wide straw hat to protect his bald head from a lifetime of Nevada sun.

10:19And we used to run through here and it was nothing like this. It was in shambles. We used to run through here and play and run over and eat at the Frosty Freeze and then go back and play. I met Westerlund along with former Nye County Commissioner Joni Eastley at the local graveyard, which, by the way, is a point of town pride. a scene straight out of the Old West. We're going to cut through right here. The plots of old miners are perfectly manicured and marked by piles of white stones in the dirt. More than a century later, mining jobs are still revered here. Eastley says government work and a military test range also boost the local economy.

10:58What I like to say is we aspire to be rural someday, but right now we're still part of the frontier. From a practical point of view, what does that mean? From a practical point of view, it means there are few services. You've got to drive a long way to get where you want to go. Aspirations for developing Tonopah's rural economy may hinge on a vast expanse of open desert outside of town. An array of new projects are coming to life. People here are buzzing with talk of a new lithium mine. Geothermal energy is hot in Nevada, and a company just announced plans for a new power plant nearby. And to the south, near the town of Goldfield, Westerland says work is getting underway on a new gold mine.

11:42It's scheduled to open in 2028. We support it 100%. This type of development is what President Trump ordered the federal government to fast track in his second term. Trump is popular here. He got 70 % of the vote in Tonopah's Nye County in 2024. Trump is kicking butt, and I love the administration, and I think all the things they're doing is what the United States needs. That's my personal opinion. Is he doing what you want to see on the issue of the economy? Yes. That's what I believe for. I agree with Joe. What about in terms of here? What is he doing in Washington that's helping folks here?

12:17Lowering gas prices. We spoke before President Trump's war in Iran sent gas prices skyrocketing higher. That's huge. Especially when you live in a town where you've got to go 200 miles to the doctor. I feel like the administration's getting a hold of that. Well, he's a big proponent of mining, too, which you've got in your backyard. Is that trickling down? Yes. The mine is opening in Goldfield. That's giant for this town. Nevada does benefit from the pro-mining attitude in the White House, according to state geologist Simon Jowett. There's a lot of interest in all sorts of different commodities in the state.

12:49So we've got exploration looking at gold, silver, lithium, geothermal, zinc, copper. You name it, people are looking for it. But prices for this stuff are volatile. A boom won't last forever. And Jowett says in some cases, the president's aggressive cuts to the federal workforce have actually slowed things down. It's hard to fast track when you don't have the people to help the fast tracking along. There's no doubt Tonopah could use the boost. Westerland says the median household income here is$37 ,000 a year, far below the rest of the state. That number would go up if a few hundred new high paying jobs come to town.

13:25But where will the people live? All across Nevada, developers are having a tough time building houses that workers can afford. There's probably 100 vacant houses, but they're not livable. And we don't have anybody that we can hire. We do, but they're so busy, you can't hire them because there's very few in town. And so you can't get a housing development put in like that. From the town's perspective, is there a risk that you could miss out on some of these development opportunities because there's not any place for people to live and it's hard to get new stuff built? I don't think so because the mines are willing to work with us and try and figure out a way to fix it.

14:02This town's resilient. We'll make it happen one way or another. And maybe with some help from people like Harry Chahal. On a warm winter day, I found him cleaning up the parking lot of his roadside lodge, the Dream Inn Motel. And lately, it's gotten a little dreamier. Oh, it's nice. Yeah, we just remodeled these ones, you know. Smells like fresh paint. Oh, yeah. Clean carpet. Clean carpet, fresh paint. Chahal says business has been tough lately. In 2017, two last four or five years, it's like super slow. But with the price of silver and gold... Tunapa can be a little bit boom. That's why you're renovating this hotel, I bet.

14:45Yes, yeah, yep. Chahal is betting that a rush of new workers will need a place to stay. for a few weeks or even a month at a time. To save money, he's renovating all 39 rooms himself. Yes, I've been investing for a long time. Are you worried about the risk of the bust? I am. I am. My personal opinion, if you not take the risk, you cannot success. And he's not the only business owner in Tonopah with an eye on the future.

15:14Our last stop on the Nevada Frontier is here in the kitchen at the El Marquez Mexican Restaurant. The staff is washing up at the end of the lunch rush.

15:31Pablo Quiroz was born in Oaxaca, Mexico. He's owned this place since the 1990s. He's seen the ups and downs. A decade ago, he says business took a hit when the only hospital shut down. Today, he's concerned about the price of meat and avocados. He's no fan of the president's tariffs. The consumers are paying the price because everything went up, and we had to pay no matter what. So I think his strategy is not helping from the low-class people in America. Did you support him in any of the elections? By mistake. Yeah. But I am very disappointed. I don't approve totally what he's doing. But like other people I spoke with here, Kiroz feels pretty good about Tonopah.

16:18New minds mean new customers. He says he doesn't have to get rich. He's secure in this town, right where he is. It's not a place where people will become a missionary. But it's a place that will give you comfort. It's a place that will help you to see food on your table, give you a shelter where to sleep. And I think that's enough for me. That should be enough.

16:45After the break, Peter leaves Tonopah for the big city, Las Vegas, where finding an affordable place to live has become a huge problem that's getting a lot of attention from lawmakers and developers. Stick around.

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17:48The American Giant classic full-zip hoodie is styled for everyday comfort and crafted in the USA for a lifetime of durability. so it's ready for everything from a casual stroll to a hard day at work. Go to American-Giant.com and get 20 % off your first order with code STAPLE20. This message comes from Carvana. Finance and buy your next vehicle with Carvana. Shop a huge selection, customize terms to fit your budget, and buy completely online. No hassle, no pressure. Get the car you love the easy way with Carvana. Outsiders know this city for its bright lights and late nights. But if you live here, these days Vegas is infamous for its cost of housing.

18:31Sometimes I stop and think, like, how are my co-workers feeding their kids and paying their bills off this same salary that I'm making? Brian Torres-Suazo is a food runner at the Westgate Hotel and Casino, a job that pays him$56 ,000 a year, which means he needs roommates. That's something I was hoping not to be doing as I exit my 20s. So if I were to ask you, the economy feels like what? What would you say for your life? How does the economy feel? Empty, sluggish, slow. I still know a lot of young people that like just have no hope to ever own a home. I mean, again, that's why I was able to find roommates.

19:12Torres Swazo is not alone. He's part of a legion of Las Vegas workers propping up the city's multi-billion dollar hotel and gaming industry who can hardly afford to live here. We are a blue-collar town with white-collar house prices. Nicholas Irwin is a housing economist at the University of Nevada, Las Vegas. With students on skateboards zooming past us on their way to class, Irwin tells me the median home price in Southern Nevada reached record highs late last year, close to$490 ,000. out of reach for people? Home ownership is increasingly out of reach for a lot of folks. We have some recent data that suggests that the average median household income that someone needs to afford a house in town, comfortably afford, is about$120 ,000 a year.

19:55And that's not the median wage in town for a household. You know, I think that's worth pointing out. You know, Nevada, Las Vegas, I think like many Sunbelt cities has had this reputation over the years, correct me if I'm wrong, as a place where you could move that would be more affordable, where you might be able to buy a house, where you could have a job and make a living. Is that changed? Is that reputation changing? That has definitely changed. That is something that is in everyone's recent memory, but the circumstances have changed here. Since about 2000, incomes have roughly doubled in town, median household income, but the price of housing has gone up four times that.

20:29That's just affordability through and through. It would be a huge change if we started to see a decrease in population or at the very least like a smaller increase year over year because affordability starts to bite into people. Nevada lawmakers are well aware of the problem. In 2022, the state channeled$500 million of federal pandemic relief money into housing. And last year at the state capitol, the legislature approved a bill from Republican Governor Joe Lombardo, who's running for re-election in November. That was the single largest state investment ever into housing. Steve Akeroth is administrator of the Nevada Housing Division.

21:05The new law expands the definition of affordable housing. It provides loans and grants for new construction. It also gives first responders, teachers, and other essential workers up to$20 ,000 for a down payment. Akeroth says that is a significant accomplishment. In a place where you have heightened political conflict, I'll just phrase it that way, pass the assembly 42 to nothing. But some issues, the state still hasn't worked out. In Nevada, the federal government owns about 85 % of the land. There's an ongoing debate whether more of it should be sold for housing. And speaking of the federal government.

21:43Another pillar of the American dream that has been under attack is homeownership. At last month's State of the Union address, President Trump blamed corporate homeowners for driving up prices. We want homes for people, not for corporations. Corporations are doing just fine. And he called on Congress. To ban large Wall Street investment firms from buying up into thousands single-family homes. Which is pretty much exactly what State Senator Dina Neal has been saying for years. The Nevada Democrat has tried unsuccessfully at the Capitol to put a cap on corporate homeownership. It was a little awkward when I asked her what it's like to be aligned with the president.

22:24Ha, ha, ha, ha. I think we have it in the reverse. I think he's in alignment with me. I am not in alignment with President Trump. I have actually no interest in being in direct alignment with his policy. It's this weird thing in the universe that allowed this to occur. I met Neal in her district of North Las Vegas. She brought me to this neighborhood for a reason. The dozen or so homes on this block are tidy and new. Neal says they're rentals. An investor built them. It's not mom and pop. It's large institutional investors. You'd have to be a large institutional investor to come in and build homes from scratch and then rent them out.

23:05When corporate investors come into a neighborhood like this, what happens to the people who live here? I think they are perpetual renters. And I think there's a level of instability that is created within the neighborhoods themselves because the houses constantly flip. What does it do for prices? It raises them. So the average rent is about$2 ,500 for these homes. So when you think about your ability to save, how are you supposed to save for the down payment assistance when you're paying for the rental property? You're not going to be able to save. More than a quarter of the homes in Las Vegas are owned by an investor, according to the real estate statistics firm Batch Data.

23:45That's one of the highest rates of corporate ownership in the country. But housing economists like UNLV's Nicholas Irwin aren't convinced a cap on investor housing will do much to help. He says there's really only one way out of this problem. You build more housing, more housing of all types, everything from low-income housing all the way to high-end housing. And you have to build a lot of it. Irwin says the state needs 200 ,000 more homes to meet demand and stabilize prices. It's a tall order, but Michelle Merced is trying to help a few houses at a time. We are here in the beautiful historic West Side, city of Las Vegas.