Bedroom Trends 2020
If you are considering purchasing a rental property in the Reno real estate market, you will find all of the latest housing statistics on this page to assist you in making an informed decision about your investment. Strong and consistent growth has been observed in the Northern Nevada real estate market. Over the last decade, the Reno housing market has experienced a significant increase in both prices and demand for housing units. Strong housing demand is continuing to put pressure on the available supply as a result of an influx of companies and jobs in Northern Nevada.
The surge in demand due to housing shortage combined and fewer new construction has led to a sharp increase in house values in recent years. The Reno housing market includes all of Reno and the town of Sparks. It is the largest city in the state outside of the Las Vegas Valley. While Reno plays second fiddle to Las Vegas, they've been nicknamed America's Biggest Little City. The city has a younger than average population; the median age is 35 while the state average is 38.
However, the possibility of demographic momentum is not enough to justify investing in the Reno housing market. Reno real estate appreciation rates are quite strong. Like most cities nationwide, Reno has experienced strong and steady real estate appreciation over the last couple of years. Reno's 12-month appreciation rate of 7.86% is higher than 71.86 percent of other American cities and towns, according to NeighborhoodScout's data. Reno's short-term real estate investors have had a good year. Reno appreciation rates were 2.31 percent in the latest quarter, which equates to an annual appreciation rate of 9.54%.
Reno Housing Market Trends & Forecast 2021 – 2022
We'll now discuss some recent housing trends in the Reno area and how they compare to the previous year. Reno has long been one of the country's hottest real estate markets. According to NeighborhoodScout.com, Reno's annual real estate appreciation rate has averaged 6.75 percent over the last decade. This places Reno in the top ten percent of cities nationwide in terms of real estate appreciation.
One and two-bedroom single-family detached are the most common housing units in Reno. Other types of housing that are prevalent in Reno include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 50% of Reno's housing units.
Due to a low months supply of inventory, Reno is a seller's market – that is, buyer demand exceeds the current supply of homes for sale. Home prices are increasing and are more attractive to sellers in the current phase. The lack of supply and rising demand for housing are driving up prices in the Reno housing market. The recent historically low mortgage interest rates are helping buyers as far as housing affordability is concerned. The combination of low inventory and low-interest rates is helping sellers to move their properties quickly.
According to the Reno/Sparks Association of Realtors, more homes are entering the market for sale in the Reno area, and the median sales price for homes remained unchanged from the previous month. According to the report, the number of homes increased by 23 percent in July 2021 when compared to June.
In July, the median sales price for a single-family home remained at $530,000, the same figure as in June. Homes were on the market for an average of 15 days before they were purchased by their new owners. In July 2021, the median sales price of an existing condominium or townhome in Reno/Sparks was $294,000, representing a 9.7 percent increase over the previous year.
Reno and North Valleys Housing Market
There were 431 sales of existing single-family homes in July, a decrease of 9.3 percent from the previous year and a decrease of 6.9 percent from June. The median sale price was $554,000, representing a 20.5 percent increase over the previous year and a 0.7 percent increase over the previous month. The median sale price of an existing condominium or townhome in July was $325,000, representing a 21 percent increase over the same month in 2020.
Sparks (including Spanish Springs) Housing Market
There were 196 existing single-family homes sold, a 9.3 percent decrease from 2020 but an increase of 10.1 percent from June. The median sale price of an existing single-family home was $500,000, up 20.4 percent from 2020 and 4% from the previous month. The median sales price of existing condominiums/townhomes was $259,000, up 4% from 2020.
Reno Listing Price Trends in July 2021
As reported by Realtor.com, the real estate market in Reno, Nevada, is a seller's market, which means that more people are looking to buy than there are available homes. In July 2021, the median list price of homes in Reno, NV was $499K, representing a 24.7 percent increase year-over-year increase in the city's housing market.
The median listing price per square foot was $299, according to the data. The median listing price of a home was $500,000. In July 2021, the median sales price of a home sold in Reno was 1.27 percent higher than the asking price. Ideally, a buyer would prefer a sale to ask price ratio that's closer to 90%. The sellers in Reno have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 101.27% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.
Homes in Reno, Nevada typically sell after 43 days on the market on average. Since last month, the median number of days on the market in Reno, Nevada has decreased, and the number of days on the market has decreased slightly since last year. Reno has a total of 33 distinct neighborhoods. Lakeridge is the most expensive neighborhood in the city, with a median listing price of $872K. Smithridge is the most affordable neighborhood, with a median listing price of $231.3K, making it the most affordable choice.
Reno Rental Market Trends
The average rent for a 1-bedroom apartment in Reno, NV is currently $1,299. This is an 18% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Reno increased by 11% to $1,100. The average rent for a 1-bedroom apartment increased by 4% to $1,299, and the average rent for a 2-bedroom apartment remained flat.
- The average rent for a 2-bedroom apartment in Reno, NV is currently $1,700, a 21% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in Reno, NV is currently $2,450, a 32% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in Reno, NV is currently $2,795, a 17% increase compared to the previous year.
Reno Real Estate Market Forecast 2021 – 2022
What are the Reno real estate market predictions for 2021 & 2022? Let us look at the price trends recorded by Zillow over the past few years. Reno has a record of being one of the best long-term real estate investments in the U.S. Since Sep 2011, the typical home value in Reno has appreciated by nearly 203% from $170,000 to $515,615 (Zillow Home Value Index). Reno home values have gone up 27.6% over the past year. The latest Reno real estate market forecast is that the home prices will continue to increase over the next twelve months but at a slower rate.
The typical value of a home in the Reno Metro area is $503,675. This value is adjusted for the season and only includes homes in the middle of the price spectrum. Home values in the Reno-Sparks metro area have increased by 27.2 percent in the last year, and Zillow predicts that they will rise by 13.9 percent in the next year.
Reno Real Estate Investment Overview
If someone mentions Nevada, the first thought most of us have is Las Vegas as the city is home to gambling and a boom and bust real estate market that was as exciting as the gaming industry. The city of Reno, also known as Biggest Little City, is home to about a quarter-million people. The Reno metro area includes suburbs around Lake Tahoe and gives the area a population approaching half a million, which makes the Reno metro real estate market much bigger.
Should you consider Reno real estate investment? Many real estate investors have asked themselves if buying a property in Reno is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2020. If you are looking to make a profit, you don't want to buy the most expensive property on the Reno real estate market and expect to make a good profit on rents.
Perhaps you are looking for a slightly different hold-over, an investment property in Reno that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider. Reno may sit in the middle of the desert, but this doesn't mean the city can simply expand as needed. The city is close to Lake Tahoe and Lake Washoe and the massive natural parks around it. This actually surrounds Northwest Reno on three sides. Lemmon Valley to the northwest is relatively undeveloped, but its tendency to flood will make developers wary of building there. The steep hills of the Sierra Nevada mountains limit construction to the west, as well.
Let's take a look at the number of positive things going on in the Reno real estate market which can help investors who are keen to buy an investment property in this city.
Reno's Economics Driving Its Large Renting Population
The median household income in Reno is 51,000 dollars a year. That's several thousand less than the state average. Yet the median home price was past the 300,000 dollar mark in 2016, and they've seen steady appreciation since then. Home prices are now flirting with 500,000 dollars. This helps put homeownership out of reach for many locals, contributing to the large rental market. That's aside from the number of people working in seasonal industries like tourism who don't feel comfortable buying over renting. About 40 percent of those living in the Reno housing market rent. The fact that many are tourists or students who are almost immune to economic pressures guarantees decent rental rates on a Reno real estate investment property.
Reno's Sizable Tourist Market
If you look at a map of Nevada, Reno is a long way from Las Vegas on the northern end of the state. Conversely, it is very close to the California border and Lake Tahoe. The area is notable for the tourists who come for Lake Tahoe in the summer and winter sports the rest of the year. The natural attractions, festivals, and conventions, and gambling away from the noise of Las Vegas resulted in five million visitors passing through Reno last year. This means that you can afford a Reno real estate investment catering to the same types of tourists as those in Las Vegas, but you don't have to pay as much for the property.
The Influx from California Is An Advantage For Reno
California's high taxes, stifling regulation and incredibly high cost of living are driving many residents from the state. While headlines talking about them moving to Idaho and Texas hit the news, many choose a closer destination – Nevada. And Reno is getting more than its fair share of California ex-pats because it is so close to the California border. Sell a house in L.A. for half a million and buy a luxury home in Reno for 400,000 dollars.
Use the difference to pay off student loans or credit card debt, and you'll enjoy a higher standard of living, too, because taxes don't make the same bite out of your paycheck. While Nevada's cost of living is 4 percent higher than the U.S. average, it is still far cheaper than Los Angeles or San Francisco. And in Reno, you can both see the mountains and afford to hit the lake or slopes as your schedule and budget permit.
The thousands moving to Reno every year from California are driving up property prices and contributing to the housing shortage. Also, as deals get harder in California you expect more and more CA investors to eye northern Nevada. It would play an even more significant role if Nevada's economy remains strong and California fails to build enough affordable multi-family residential units to sustain its economy.
The Lack of Supply In The Reno housing market
The Reno housing market is experiencing a housing shortage. The Reno real estate market has the greatest shortage of affordable houses. That's defined as anything costing less than 360,000 dollars. This is partially due to developers focusing on building luxury homes in the area, especially in and around Lake Tahoe. This is why property values in the Reno real estate market went up 27.6% over the past year.
Reno's Sizable Student Market For Rental Properties
Yes, Reno has a student market. Reno is home to the second-largest university of Nevada campus in the state after Las Vegas. This is home to around eighteen thousand students, and that's huge given that the city itself is home to a quarter-million people. UNR is the only major public university in the area, though there are community colleges in the area. If you are considering Reno real estate investment catering to students, know that there is another four-year school in the area – the private religious institution of Multnomah University. The Reno area is notable for hosting the National Judicial College, a training program for judges in the state that attracts people from around the world. Also, buying in University Area with a city view is your best bet for a rental property for students and family.
Reno's Favorable Tax Climate
Nevada is well known for not having an income tax. They have a state sales tax, but that isn't of concern if you buy a Reno real estate investment property. There is a modest real property transfer tax. Nevada counties and the state itself levy property taxes. This averages about 1 percent of the home's value. That's somewhat lower than the 1.2 percent national average.
Landlord Friendliness For Reno Rental Property Investment
In reports ranking states by landlord friendliness, Nevada came in eleventh in the country. That's pretty good. It also makes Nevada far superior to California, a state that is rapidly becoming unbearably hostile to property owners. Only Arizona was more landlord-friendly out of the Western states. Why didn't the state rank better? The law requires a 45-day notice to raise rents, and tenants can deduct repair costs from the rent. Conversely, you don't have to pay interest on deposits, you can mingle deposits, and there are no limits on late fees as long as you write it into the contract. The state doesn't require a rental license.
Update: On July 1st, 2019, a new tenant protection legislation named SB 151 officially went into effect. It provides tenants with more time to deal with the consequences of eviction after they have had an eviction notice posted on their homes. They will now have seven judicial days to pay their rent or quit. The previous time frame was five calendar days.
For landlords, this new housing legislation also enables them to utilize an attorney or agent to prosecute the eviction action on their behalf. They will now need to go find a permitted eviction process server to carry out these tasks. Those who oppose SB 151 claim that giving tenants more time to go through the evictions process, will make it more difficult for owners to get their properties back on the rental market.
The Reno real estate market is ideal for investors for several reasons. Supply is limited, and demand is growing. Rental rates are driven by several competing markets that aren't going to slow down any time soon. Forget owning a couple of condos in Las Vegas and invest in a more affordable, stable real estate market like Reno. Good cash flow from Reno investment properties means the investment is, needless to say, profitable.
A bad cash flow, on the other hand, means you won't have money on hand to repay your debt. Therefore, finding a good Reno real estate investment opportunity would be key to your success. If you invest wisely in Reno real estate, you could secure your future. Even as Reno home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain in the near future.
The homebuyers won't be able to outbid real estate investors and would end up renting. The high prices combined with the lack of higher gains have slowed down fixing and flipping investment properties in Reno. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Reno and want to purchase property to rent out.
Reno housing prices are not only among the most expensive in Nevada but they are also some of the most expensive in all of the United States. It really depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. The inventory is low, but opportunities are there. To the North of Reno Stonegate is a very interesting development because it is targeting working-class families with a master-planned community at affordable pricing.
As with any real estate purchase, act wisely. Evaluate the specifics of the Reno real estate market at the time you intend to purchase. Residential management is a really good business but also very intensive and requires a lot of attention. Hiring a local property management company can help in managing your investment properties if you own several of them. They would also help in finding tenants for your investment property in Reno.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTShas extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Reno.
Not just limited to Reno or Nevada but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We're standing by to help you take the guesswork out of real estate investing. By researching and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Las Vegas is another hot real estate market in the state of Nevada. The Las Vegas real estate market kicked off well in 2021, with home prices and sales increase from the same time last year. The Las Vegas home prices are trending up to possibly make a new record in 2021. They are predicted to gradually increase in 2022 due to the strong demand for housing and persistently tight supply. The Las Vegas housing market shows that the inventory of homes has further decreased from last year. The high demand is followed by an increase in population, as well as an overall improvement of the economy in the area. All these factors have had a huge impact on the Las Vegas housing market, which is considered one of the hottest markets in the nation.
On the east of Nevada lies the state of Utah, where you can consider investing in Salt Lake City. The Salt Lake City real estate market was ranked one of the toughest real estate markets for Millennials due to limited supply relative to demand. Salt Lake is a "slightly hot" real estate market at the moment. The economy is strong and the city achieves the lowest unemployment rate at 3.1%. Home prices in Salt Lake City are expected to rise by record levels in 2021. A strong job market and a robust economy have contributed to the rising housing costs over the past seven years.
Ogden is another good and affordable real estate market in the neighboring state of Utah. The Ogden housing market is appreciating because people move here for work as often as they do live. For example, there are several good-paying jobs in the IT, life sciences, aerospace, and outdoor products manufacturing industries. There are civil service jobs with the state tax office and the local hospital. And then there's the college. This is on top of Utah's employment growth rate of roughly 3 percent a year.
On the southeast of Nevada lies the state of Arizona where you can invest in the Scottsdale real estate market. You'll see better than average returns on the average Scottsdale real estate investment property, and its value will be bolstered by a variety of factors. This makes Scottsdale a better choice for investors than Phoenix. The Scottsdale real estate market has a more diverse rental market than just catering to those who can't afford to buy a single-family home. For example, the area is famous for its snowbirds, retirees who come for the winter before returning home. Some of them buy a one or two-bedroom home to live in half the year. Others rent such properties. While many live in Sun City and other age-restricted communities, others choose to rent elsewhere in the Scottsdale real estate market.
Let us know which real estate markets in the United States you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
Latest Market Data, Trends, and Statistics
https://www.rsar.net/market-reports
https://www.zillow.com/reno-nv/home-values
https://realestate.usnews.com/places/nevada/reno
https://www.realtor.com/realestateandhomes-search/Reno_NV/overviww
Economics driving renting
http://www.city-data.com/city/Reno-Nevada.html
https://www.deptofnumbers.com/rent/nevada/reno
Geography
https://www.rgj.com/story/news/2018/03/05/rgj-investigates-reno-knew-lemmon-valley-would-flood-but-allowed-development-anyway/317123002/
Student market
https://multnomahreno.org
https://www.movoto.com/guide/reno-nv/moving-to-reno
https://www.yelp.com/biz/the-national-judicial-college-reno
Nevada taxes
https://www.bankrate.com/finance/taxes/state-taxes-nevada.aspx
https://smartasset.com/taxes/nevada-property-tax-calculator
Housing shortage/lack of supply
https://www.rgj.com/story/life/2017/07/20/move-to-reno-8-things-you-need-know-first/486645001
Tourist market
https://livability.com/nv/reno
https://www.rgj.com/story/money/business/2018/06/25/reno-tops-5-million-visitors-first-time-decade/715941002
Landlord friendly
https://www.avail.co/education/laws/nevada-landlord-tenant-law
https://patch.com/nevada/lasvegas/nevadas-renter-laws-11th-best-america-study
Short term rentals
https://www.tahoedailytribune.com/news/washoe-county-commissioners-hope-to-craft-short-term-rental-regulations-with-teeth
Influx from California
https://www.wsj.com/articles/as-california-loses-people-a-las-vegas-suburb-grows-11551197094
https://californiamoversusa.com/resources/pros-and-cons-of-moving-to-nevada-from-california
Source: https://www.noradarealestate.com/blog/reno-real-estate-market/
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