NVSAA Report Shows Reno Area Apartment Rents No Longer Rising
RENO – A report released this week by the Nevada State Apartment Association (NVSAA) shows that apartment rents in Northern Nevada are no longer rising, with median rents at the end of 2022 up slightly from a year ago.
The report, released by NVSAA based on data provided by CoStar, shows that asking rents for apartments in the Reno-Sparks area through the fourth quarter of 2022 averaged $1,490 per month. That’s down from $1,520 a month at the end of the previous quarter and from $1,493 a year ago. It’s also a significant shift from mid-2021, when rents rose by a record high 12% year-on-year.
At an average of $1,490 per month, the report noted that local apartment rents are still below the national average rent of $1,620 per month and remain a relatively affordable option compared to nearby markets in California and elsewhere.
Meanwhile, the vacancy rate for local apartments has been rising over the past 12 months, with the average vacancy rate now at 8.5%. This is up from 7.5% during the previous quarter.
The report showed that the supply of new apartments in the area has expanded significantly over the past few years. More than 1,000 new units entered the market every year since 2018, with a total of 7,200 units added over the past five years. The Reno-Sparks market currently has 3,900 units under construction, which will increase the overall local apartment supply by 9.2%.
“The flat rent growth in Reno is likely due, at least in part, to a wave of apartment development throughout the area, with 1,300 new units added over the past year,” said the new executive director of NVSAA, Robin Lee. “Demand will likely struggle to offset supply pressure in the coming months, with the significant increase we are seeing in inventory.”
This report is provided by NVSAA based on data from CoStar, a leading provider of commercial real estate information.
The Nevada State Apartment Association is the voice of the multifamily housing industry in Nevada. The nonprofit organization provides a variety of services to its 1,057 community members, property management and business partners nationwide, including legislative support, education and community outreach. NVSAA is committed to promoting and supporting the diversity, integrity and success of its members and their industry. For more information, visit www.NVSAA.org.