In his State of the State address, Governor Sandoval called on the Legislature to pass reasonable construction defect reforms, revive our housing market and bring new jobs to Nevadans. As the Governor noted, much of the persistent unemployment in Nevada can be attributed to construction jobs which were cut in half in the last recession. Simply getting housing construction back to pre-recession levels would create nearly 40,000 new jobs in Nevada and generate $336 million in new tax revenue each year.
The fact is that vague laws and abusive lawsuits are undermining our housing recovery. Nevada construction defect laws have created a shortage in multi-family housing – an 84 percent decline from 1998 to 2013. These unfair laws have helped cause new home construction to decline by 86 percent from 2000 to 2012.
The Nevada Home Builders Association was pleased to hear Governor Sandoval’s call to action. By creating clearer rules and ensuring prompt resolution of disputes while discouraging unfair and abusive lawsuits, construction defect legislative reforms will revive our housing market and bring new jobs to Nevadans. We believe this is an essential opportunity for Nevada to revitalize its housing industry, create jobs and spur economic growth. We thank Governor Sandoval for his support.