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.