RENO – Apartment rents are leveling off in the Reno-Sparks area, thanks largely to the increasing number of units being built. So says a report released this week by the Nevada State Apartment Association (NVSAA).
The report, issued by the NVSAA based on data provided by CoStar, shows the average asking rent for apartments in the Reno-Sparks metro area at the end of 2019 was $1,240 per month. That was up 1.4 percent from one year ago. That’s well off the pace from 2016-2018, when local apartment rents increased by an average of 8% per year, posting some of the nation’s biggest gains.
“The apartment market in the Reno area has been shifting recently,” NVSAA Executive Director Susy Vasquez said. “Rents have been slowing down and vacancy rates have been rising. This is largely due to the unprecedented number of new apartment units being built here. Since 2017, more than 4,000 new apartment units have hit the local market.”
As of the end of 2019, the apartment vacancy rate in the Reno-Sparks metro area was 6.5%. One year ago, that vacancy rate was 5.9%.
“While the local apartment vacancy rate remains below the national average, it’s quite a bit higher than it was a year ago,” Vasquez added. “Again, this is mostly because of new construction, since demand for apartments in the Reno area remains strong.”
According to the report, the local apartment inventory has increased by about 12% since 2016. In 2019 alone, the report found that another 1,256 new apartment units were added to the Reno-Sparks area. On top of that, the report noted that another 3,952 apartment units are under construction in the area. Examples include a 1,700-unit community being built by the Reno Land Development Company on the former site of the Park Lane Mall near the airport and another 581-unit community called Inova being built on Summit Sierra Boulevard by the same developer. Vasquez said that’s a dramatic departure from 2010 to 2013, when few apartments were built in the area.
This report is provided by the NVSAA based on data from CoStar, a leading provider of commercial real estate information.
About the NVSAA
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 894 community, property management and business partner members statewide, 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. ###