Reno
Rents Surge in Reno
Rents in the Reno-Sparks area have once again in the fifth quarter in a row increased. The average rent for an apartment reached $1,6o7 during the second quarter of this year, a record-breaking trend that has continued since the second quarter of 2020. Due to the strong demands of renters who are already struggling to find affordable homes in this market, this is bad news. The single family home in the Reno-Sparks area remain at a record high of $530,000 in September, according to the Reno/Sparks Association of realtors. I personally have seen some leveling out in the past couple of months but it still remains a sellers market if the home is not overpriced.
Most of the new renters, about 40% are coming from the California area. Mainly to get away from California and Reno being more affordable. Vacancies are below 1% in 3 areas in Reno. The Northeast, Southwest and West Reno.
“Just over 4,000 apartment unites are currently under construction in the Reno – sparks market, with over 5,900 unites in the planning stages,” the Johnson Perkins Griffin report said. “Due to the Covid-19 pandemic, it is likely that development of planned unites will be delayed in the short term, until the ultimate impact of the pandemic is know.”
The big question is to buy or not to buy? Where in the past if something came on the market it would virtually disappear right away and there would be multiple offers on the table. People where not doing inspections and willing to pay above appraisal value. However today inventory is slightly higher but not as intense as it used to be and not as many multiple offers on the table. It might be a good time now for buyers to once again start looking. Interest rates a still low, however there is talk that in the near future they will be going up. Inflation could become a concern as the costs of goods and gas continue to increase, the Feds might raise interest rates to counter act this.
I have seen homes in the luxury market sitting longer than usual on the market. I do believe this is due to the fact that many are over priced and due to the holidays sales will decline a little,however in the New Year will once again surge… what with Nevada being a tax friendly state and our incredible outdoor life we have here.
Reno Nevada Real Estate Soars
Nevada the Most Moved-to State in Early 2021
Reno has became the top state with the highest share of cash sales in the nation so far this year. 51% of home sales in Reno where cash sales. Nationwide, the share of cash sales was 20%. This speaks for itself on our market here in Reno where cash is king and homes sell in days, or even hours, and usually have multiple offers. Will Reno reach $600,000 for the median price of a single-family house this year? That’s the question among real estate watchers as The Biggest Little City posted yet another record for the median sales price of an existing single-family home in May. Reno posted a May median sales price of $550,000, up by 9.6% from the previous month and a whopping 29.1% jump year-over-year, according to the Reno/Sparks Association of Realtors.
It also beat the previous record of $515,000 set in March. These numbers are for existing single-family homes. “The inventory of homes for sale continued to tighten during May,” said Gary MacDonald, RSAR president. “The active inventory at the end of the month declined by 13% and stood at 300 homes — well under a month’s supply at the current pace of sales.”
It is my belief that if you are not very familiar with the area, I recommend renting before buying. While it may be tempting in this current market to buy first, getting a better idea of the market before making such a major investment can be a great idea. Even if you just find out which neighborhood you prefer, having 12 months or so of insight can be very helpful. The only problem you might have in the Reno area is that it is very difficult to find rentals. The luxury market is out of hand as well. Montreux Golf and Country Club a private Jack Nicklaus Golf Course has 2 homes on the market at present. I listed a home a few weeks ago in Montreux at 11.30 am for $2.5 M and by 7 pm that evening I had a cash offer.
The Market in Neighboring Lake Tahoe Communities
Incline Village and Crystal Bay closed this spring by tripling its medium home price as Lake Tahoe’s hot luxury market shows no sign of abating. The medium home sale in Incline was $2.53 million. People are choosing to live in Nevada because of our friendly tax environment, and many are moving away from big cities due to the pandemic with the ability to telecommute. Homes priced at $2 million or more accounted for 40% of home sales in April, up from zero sales a year ago when the pandemic froze the luxury market.
THE HOUSING MARKET IS BACK
Perhaps we are all wondering why with a Pandemic, recession and protests across the country, the housing market isn’t at a stand still? With the crippling and ongoing coronavirus pandemic, millions out of work, a recession, a national reckoning over systemic racism, and a presidential election just around the corner, the residential real estate market is staging an astonishing rebound.
“The housing recovery has been nothing short of remarkable,” says Ali Wolf, chief economist of Meyers Research, a national real estate consultancy. “The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.”
Why is this so? There is a severe shortage of homes for sale. Mortgage Rates have never been lower and there are tons of buyers.
There’s an awful lot of pent-up demand from buyers who were stymied by the novel coronavirus in the spring. These are the folks who were forced to postpone their searches in March, April, and May. Some are first-time buyers with growing families who need the extra space pronto. Additionally, many home buyers will perhaps never see interest rates at such a low point in their lifetimes. The average mortgage rate fell to 3.03% for 30-year fixed-rate loans in the week ending July 9, according to Freddie Mac. That’s the lowest they’ve been since Freddie began tracking rates in 1971.
Buyers are now back in force, competing with those who had planned to buy in the summer—along with the city folks suddenly seeking a single-family home of their own, a more spacious abode with a home office (or two), and outdoor space.
“They’ve been at home for months, and they’re going, ‘If I’m going to spend the next six to 12 months working out of my house, I need a bigger house,'” says mortgage broker Andrews. About half of remote workers polled by Gallup recently, 49%, would prefer to continue working from home even once their offices reopen. Not to mention those who are tired of the big cities and now want to move out to smaller communities.
Reno with it’s No State Tax and close proximity to California has had an influx of buyers, but beware, future buyers shouldn’t expect deep discounts during this recession—at least not yet.
Renown Health & Stanford Medicine Partnership
Renown Health announced recently that a new partnership with Stanford Medicine has been made. This is truly and game change for the Reno medical arena. It makes Northern Nevada better in a multitude of ways that our community should celebrate and strengthens the world class reputation that the Reno area is cultivating.
The area has world-class skiing and other out door recreation with miles of hiking and biking as well as attracting a world class technology sector with Telsa, Apple and Switch to just mention a few… that have moved to the Industrial park just East of Reno. Desert Research Institute and the University of Nevada, Reno’s seismology lab are among the top research institutes in our area.
Now this region has increased access to the Stanford Health Care system, including its Lucile Packard Children’s Hospital, ranked last month as one of 11 exceptional children’s hospitals in the nation by U.S.News & World Report. In the past over $40 million worth of medical care has been spent in residents seeing out-of state specialists and another $20 million on Travel, lodging and related expenses according to Renown analysis. Renown expects that academic affiliations between Renown and Stanford University will increase the number of specialists who train and provide care in Northern Nevada. More residents will be able to get care here because of telemedicine opportunities with Stanford doctors. Nevada suffers from a doctor shortage and this opportunity is going to help the situation. With this partnership hopefully doctors that train in our area will now stay permanently in the short and long term.
At present Renown’s Hometown Health plan insures about 135,000 people, most in Reno-Sparks. Specialty and sub-specialty care at Stanford facilities will be covered in -network by the plan. This can mean huge savings for treatment not available here for a child with cancer or anyone needing a heart transplant, for example. Well done to all those involved in making this happen for us who live in Reno.
STEAMBOAT HOT SPRINGS…also known as CHICKEN SOUP SPRINGS
Many of us might not know, but one of the oldest spa’s in Nevada is a mere 8 miles down Mount Rose Highway from Montreux and the surrounding area. The road in front of Steamboat was once the Lincoln Highway, the 1st highway built in the United States. It went as far as Chicago. In 1849 Winnemaca war chief of the Paiute Indians stationed their winter camp along the banks of Steamboat springs. Indians traveled as far from Mexico to come to Steamboat Springs as it was considered a Sacred Grounds and camp in the foothills of Steamboat Springs. The Indians used the hot springs to cook their pine nuts while in 1849 settles were parboiling entire oxen in the hot springs. The well at the springs was named “Chicken soup” as the water was supposed to have a taste of chicken soup.
James Cameron discovered the Springs in 1859. A sticky, black goo on the other side of SteamBoat was to be full of gold and silver which brought many miners to the area. In 1862 Dr Ellis built a 34 bed hospital along with 7 baht houses. He was from Austria and had studied under Sebastian Kneipp a renowned Doctor in Hydrotherapy and practiced healing with herbs. This was the first hospital in the world outside Austria to apply theses techniques and was considered advanced for the times. Unfortunately there was a fire and in 1863 the resort was rebuilt as was the hospital.
Mark Twain came often to the springs to soak in the hot tubs as it was thought to help with rheumatism among other ailments. Dr Ellis made a concoction called “The Wake up Jack,” mixture which Mark Twain tried and for 48 hours said his stomach had never had such a scourging and would never take it again even though he felt wonderful after the three day ordeal. Once again the buildings burnt down and now it was owned by a Mr. Cullins who severed his relationship with Dr. Ellis. In 1873 Mr. Cullin’s fell into the hot springs while building a new bath and died within 7 days as he was boiled alive. His widow sold the springs in 1874.
In 1878 construction of the Steamboat Irrigation Canal began. A 34 mile long ditch originated above Verdi on the Truckee river to just south of the resort. It still functions today. President Ulysses Grant steamed into Virginia City and stopped off at the resort. Unfortunately an earthquake on December 10th 1900 caused the hot Springs to dry up. In 1918 Dr. Edna J Carver took possession and drilled new wells resulting in a sprouting 30 ft geyser, ending the dry spell. The Spa was plagued by fire many times and in 1974 it was placed under the national Historical Register and a marker was placed along US Highway 395 S. In March of 1996 the spa was reopened to the public and is run by a non-profit organization – International Community of Christ, Church of the second Advent.
The waters at the Spa have a generous amount of minerals in them. To mention a few, Silica, Sodium, Lithia and Lithium. I have personally been many times and really enjoy the warm water and its healing power. The Spa is located at 16010 S. Virginia street, Reno NV 89521 and the phone number is 775-853-6600. www.steamboatsprings.org.
Reno Commercial Real Estate Comeback
During our recent downturn , the recession also affected the commercial real estate in Reno. Industrial, office, and retail were not immune to what is called today the worst recession in Nevada’s history. The good news is that with Northern Nevada seeing increased economic activity, including the arrival of some high-profile companies, commercial real estate in the region is seeing a rising tide effect, according to industry watchers.
Some of the companies that once existed are no longer around anymore, like Circuit City and Good Guys. Vacancy for retail in Reno-Sparks peaked at 17.3 percent in the first quarter of 2013, according to commercial real estate service firm CBRE Inc. Since then, the vacancy rate has gone down to 12 percent in the first quarter of this year. A vacancy rate of 7 percent to 8 percent is typically considered healthy for retail. Reno’s Central/Airport market, which includes the surrounding areas of Reno-Tahoe International Airport, continues to post the highest vacancy rates in the area at 24.2 percent.
Since last year we have already exceeded the retail market with a strong first quarter in 2016 with a net absorption or available space that has been filled, totaling 192,188 square feet, according to CBRE’s latest quarterly retail report. Retail also posted one of the biggest job gains for the state in March, helping lower the state’s jobless rate to 5.8 percent for the month, according to the Department of Training, Employment and Rehabilitation. Due to an overabundance of supply the construction of new commercial property is still stagnant, however there is a demand for improvement to existing centers such as the 19,500 square-foot expansion at the Outlets at Sparks, also known as the Legends at Sparks Marina.
It is the Industrial segment that has really boomed in Northern Nevada. What with Telsa Giga-factory and Switch’s Super NAP-the world’s largest data center once finished, as well as the news that Rackspace is looking at our area, has given our area a much needed boost on the technology side as well as some corporate cred. Dermody Properties, for example, has broken new ground on its LogistiCenter I-80 West speculative project at the Boomtown area just behind Cabela’s. The 800,000-square-foot project will feature four buildings and focus on tenants ranging from 30,000 to 200,000 square feet, said Eric Bennett, first vice president at CBRE. “This will be the first speculative project built in west Reno to take advantage of the mature labor market in northwest Reno and the close proximity to California,” Bennett said. Distribution accounted for 70 percent of all transactions in the fourth quarter of 2015, according to Colliers International. “At the end of the day, it’s packers and pickers,” said Greg Shutt, a vice president with Colliers International. “It’s logistics.” Bennett also pointed to sizable expansions such as ITS Logistics’ 625,500-square-foot facility and pet item supplier Chewy.com’s 566,600-square-foot facility, with several more announcements expected during the second quarter.
Office space has been relatively flat in 2016. Rents have been rising for the last two years consistently and it will probably take another two and a half years for a healthy market to emerge. The three dominant markets for office in the area are downtown, Meadowood and South Meadows, each with their own niche tenants from related industries, said Tim Ruffin. ( Executive vice president at Colliers International)
Looking ahead, the trends look positive for the area, commercial real estate watchers agreed. Reno-Tahoe International Airport added several new flights and routes while also posting its first passenger growth in a decade in addition to record cargo hauls. Nevada also was the No. 2 most popular destination for movers in the West according to United Van Lines’ 2015 National Movers Study.
For Northern Nevada, a big part of it involves the national attention gained from big economic development wins such as the Gigafactory, Ruffin said.
“The whole perception of investing in Reno has changed,” Ruffin said. “The expectations from Tesla haven’t materialized yet but investors are coming in because of the perception.”
Reno launches Google Express for shopping & delivery
After going through the toughest recession in its history, Northern Nevada has seen its fair share of economic development victories in the years that followed. Google Express, a shopping and delivery service for participating store, launched in Reno and Las Vegas on March 15 2016. Google with its proximity to California where Google is based, made it a natural fit for the service, according to the company. This allows residents to use the online shopping and delivery service for participating area stores. Just to mention a few of theses stores: Barnes & Nobel, Bed Bath & Beyond, Guitar Center, Gymboree, Rayley’s, REI, Smart and Final, Target, Toy “R” Us, Walgreens and Whole foods. Brian Elliott, Google Express general Manger, said, ” Our goal with Google express is to offer a great shopping experience and connect people with their favorite stores.” This will allow customers to receive their orders with overnight delivery..
Delivery costs for Google Express memberships can be free for eligible orders that meet store minimums. Deliveries that do not meet the store minimum will be charged a $3 small order fee. For two-hour time windows, deliveries start at $2.99 where available. Membership costs $10 a month and $95 per year. For non-members, delivery costs start at $4.99 for eligible orders that meet the store minimum with the same $3 small order applying for non-eligible items. For two-hour time windows, delivery costs start at $4.99 where available.
Google Express service is available in Northern Nevada, Southern California, New York City, Boston, Chicago and Washington D.C. Once again The Biggest Little City in the World has done it again.
I encourage you to all watch the New Nevada. We have come a long way since the first Arch was installed in 1926 with the words, “The Biggest Little City in the world” to promote the Nevada Transcontinental Highway Exposition that ran from July 25 to August 1, 1927, which celebrated the completion of the Lincoln and Victory Highways.
On another note the unemployment rate dropped to 5.9 percent for the first time in eight years in Nevada since April 2008. The national rate remained at 4.9 percent. “The number of Nevadans unemployed because they involuntarily lost their jobs has tumbled from nearly 120,000 when the recession was at its worst, to less than 40,000 over the past year,” said Gov. Brian Sandoval. Construction was the hardest hit sector during the recession and continues to lead the state in terms of percentage growth. Trade, transportation and utility employment had the largest nominal growth this month by adding 9,9000 jobs to payrolls year-to- date, for growth rate of 4.2 percent.
The Nevada Museum of Art presents: THE HORSE
The oldest cultural institution in the state of Nevada, the Nevada Museum of Art was founded in 1931 as the Nevada Art Gallery by Dr. James E. Church, a Professor of German and Classics at the University of Nevada, Reno. In 1988, the E.L. Wiegand Foundation provided the Museum with a new 15,000 sq. ft. facility and the institution was renamed the Nevada Museum of Art / E.L. Wiegand Gallery. Five years later, in 1993, the Museum received initial accreditation from the American Association of Museums, a credential held by less than 5 percent of the nation’s 16,000 museums. That same year marked the development of the E.L. Cord Museum School, a studio-classroom allowing its educational services to expand, and the start of an ambitious program to increase its permanent collection. In 1999, the Museum was awarded the prestigious National Award for Museum Service by the Institute for Museum and Library Services in Washington D.C. honoring outstanding museums that demonstrate a commitment to public service with innovative programs that address social, economic, or environmental issues.
It is the only nationally accredited art museum in the state, the Museum features exhibitions by national and international artists with a permanent collection of 19th through 21st century art.
Just to mention a few of the past exhibitions that have been at the museum: Frida Kahlo: her Photos, A Real Van Gogh?: An Unsolved Art World Mystery, Celebrate Art of the Tiffany Era: Three unique exhibitions and Andy Warhol’s Dream America.
The Nevada Museum of Art is proud to present to our community The Horse, a comprehensive exhibition detailing the enduring bond between horses and humanity. The exhibition explores early interactions between horses and humans and portrays how horses have, over time, influenced civilization through advancements in warfare, trade, transportation, agriculture, sports, and many other facets of human life. The exhibition was created by leading scholars and scientists at the American Museum of Natural History in New York City. Dioramas, skeletal mounts, fossils, cultural artifacts from around the world, and interactive computerized modules – will draw visitors into the world of the horse as never before. An immersive multi-media experience, The Horse explores our history, inter-dependence, and emotional connection with this remarkable animal. I so enjoyed the exhibition which will appeal to all ages.
There is also a small section which introduces a person to horses in the American West. Joel Nelson’s poem, ” Equus Cabuallus,” is displayed on the wall and a video of him reciting it. Nevada has the largest amount of wild horses in the United States. You can see a selection of Historical and contemporary paintings, photographs, and sculptural works drawn from private collectors and the Museum’s permanent collection. Explore the significance and impact of horses in Nevada’s settlement and culture.
The Museum is located at 160 West Liberty Street in downtown Reno. Phone number is 775.329.3333. Webiste is: www.nevadaart.org
Tech Companies Create a Housing Boom in Nevada.
The housing market has been improving statewide throughout Nevada, and we expect around 50,000 people to arrive to the area in the next five years, according to the Nevada Association of Realtors. Prices have rebounded to just over half of pre-recession highs. Foreclosures and short sales have dropped to 6% in the two major cities combined markets. Demand has finally caught up to the supply and now it is getting harder and harder to find available homes. Residential development is still possible in Nevada due to its diverse landscape. From high desert surrounding Reno to the lush pine forests of neighboring Lake Tahoe, the natural sights are sure to please many. A typical Reno home now sales for $299,250, nearly double the price from the city’s recession low in January 2010 when homes fetched a meager $167,000, according to data from the Northern Nevada Regional multiple listing services. Luxury prices in Reno soared 20% year over year, according to special report on luxury sales release by Redfin last month. The Seattle-based brokerage firm says that average luxury home in Reno sales at around $1.1 million – cheaper than nearby San Francisco, where the average price for a luxury estate is $5.9 million. One has to remember that San Francisco is a mere 1 hour flight away and a 3 1/2 drive. Jet Blue now has a direct flight from Reno to New York as well.
Nevada is going under a transformation and there are more than just electric car companies that are a part of it. Dozens of companies have begun to move their operations to the state, many to the Tahoe Reno Industrial Center. Wal-Mart also has a 1 million-sqft. distribution facility there. Also located in TRIC is Las Vegas-based Switch and their data center, the largest in the world once it is completed. The Amazon distribution center and the Apple data center are also additions to the Reno community. A Palo Alto-based company, Tesla is building its $5 billion, 10 million-sqft. Gigafactory in northern Nevada in order to produce the lithium ion batteries that run their vehicles.
The Economic Development of Western Nevada (EDAWN) is continuing to focus its efforts on stimulating business, which thereby increases visitor count. Please watch this new video produced by Edawn on THE NEW NEVADA. The RSCVA has partnered with EDAWN, UNR, the City of Reno and the Regional Transportation Commission in order to market the region at a national level. There has also been increased awareness to the region due to newly added air services to and from Reno. For example, in June Southwest will begin nonstop Reno flights to and from Orange County. In addition to these, Reno-Tahoe has seen a snowy winter that has attracted ski bums from all over and promises a high water level on Lake Tahoe for summer adventures like rafting, kayaking, boating and water sports.
Affordable Housing Vanishing in Reno
In 2015 housing prices skyrocketed in Northern Nevada. Northern and Southern Nevada are battling neck and neck for fastest growing region. Prices are almost back to what they were in 2005. Nevada had a 4.5 percent job growth in 2015, according to the Nevada Department of Employment, Training and Rehabilitation. Northern Nevada is expecting close to 10,000 new jobs per year according to DETR and the Economic Development Authority of Western Nevada Projections.
There is no doubt that the employment increase is due in part to the Tahoe-Reno Industrial Center, the largest Industrial Center in the world.
Tahoe Reno Industrial Center (TRIC) is a massive 107,000 acre park that encompasses a developable 30,000 acre industrial complex with pre-approved industrial and manufacturing uses. The uniqueness of the park and the county in which it resides is outlined in a recent article (click here)
Located nine (9) miles east of Reno on I-80, in a pro-growth Nevada county, the four 5,000 acre phases now available for development include:
- Rail serviced sites
- Municipal water and sewer utility companies
- High pressure gas to all sites
- Five (5) generating power plants on site with more than 900 megawatts of electrical power available to all park users
According to the Builders Association of Northern Nevada the housing inventory if far below demand. A healthy market has 6 months worth of houses to supply buyers and we have slightly less than 3 months available. This is why we are continuing to see rising housing prices as demand increases faster than supply. The rental market has increased as well with the median rental price at an all time high of $946 per month, according to real estate website Zillow. Rentals are also expected to increase this year despite new developments. A similar lack of Multi-Family inventory and land is causing a rental crises in the region and raising prices.
During the next 5 years, housing prices are expected to increase another 6 % in Nevada, according to a December 2015 report by CoreLogic, a financial services and real estate consulting firm. Similar percentages are also expected all over the country. However not everyone agrees they will go up that high. The Reno/Sparks prices might remain flat or rise more slowly, according to BANN forcast. A sudden increase of housing units, both single or multi-family would also change the supply in the region and affect prices.
