Along with home sales, rental properties play an integral role in the overall outlook of the housing market in Reno and Sparks. Just as the housing market is in growth and is a seller’s market, the rental market is also showing an increase with low vacancy rates and increasing rental rates. With a projected increase of over 50,000 new jobs and over 60,000 new residents in northern Nevada, there will be continue to be a high demand for housing and especially rental housing as new people move into the market and need immediate homes.
Let’s start with rental rates for Sparks. In May, the average rent for a studio runs approximately $492, for a one bedroom is $781, a two bedroom is $988 and a three bedroom $1503. The trend for rental rates in Sparks was up, on average 3%. In Reno, the rates for a studio are $906 for a studio, a one bedroom runs $876, a two bedroom is $972 and a three bedroom goes for $1245. The average rates increased slightly from $947 to $972 over the last six months. That shows an increase of 3%, similar to Sparks. The highest rental areas in Reno include South Reno and the Northwest. The lowest rental rates are the Old Northwest/West University and the Northeast.
Currently, the vacancy rates in Reno and Sparks are at some of the lowest levels with the first quarter at 2.3%. Over the last eight months, the overall vacancy rates have averaged 2.62%. Looking ahead, there are over 4,000 units planned for the year and almost 1,500 currently under construction. With low vacancy rates, and planned or current construction increasing by 15%, the rental market in northern Nevada is strong and expanding.
When looking for a place to rent or if you have a place to rent, there are a couple of good resources online for both parties. For property managers, management companies and owners, the Nevada State Apartment Association has multiple resources online, including a link to downloadable forms at https://www.rentalformscenter.com. For renters there is also a special FAQ section to answer many basic rental questions. Another good resource for rental information can be found at Washoe Legal Services.
The market is robust whether you are a landlord or a potential tenant and Reno and Sparks is a great place to find your new home whether you are buying a house, renting a house or renting an apartment.