Reno-Sparks Rents Continue To Rise
Reno is listed on one site as the 64th most expensive city to rent as rent prices continue to rise.
Residents in Reno and Sparks are paying 15.7 percent more for rent than they were one year ago, according to zumper.com. It lists Reno as the 64th most expensive city to rent, tied with Boise, Idaho. San Francisco has the highest rent, followed by New York City and San Jose.
Johnson Perkins Griffin Real Estate Appraisers & Consultants has slightly different numbers, surveying more than 80 apartments in the Truckee Meadows. It shows that through three quarters of 2017, rent increased about 11.3 percent, from $1,066 per month to $1,202. It has not received the rent statistics from the last three months.
"For the region, we are seeing all-time highs," Sarah Fye, Appraiser Intern for Johnson Perkins Griffin said. "There are a lot of people living in apartments right now. With housing prices up higher, to some people, it is more desirable to rent."
One bedroom apartments have an monthly average price of $1,071 while a two bedroom, two bathroom apartment averages $1,346.
Vacancies are at 2.41 percent in Reno and Sparks. That demand is causing the increase in rent. While construction of new apartments stopped during the years following the Great Recession, it has picked up again. Approximately 4,000 units are under construction and an additional 7,000 are in the planning stage. Harvest at Damonte Ranch is one of Reno's newest luxury apartment complexes, offering anything from one bedroom units to three bedroom townhouses. Since it is a higher-end community, the rent is above average.
"Our rents start at $1,500 and go up to $2,100," Gigi Chisel, Vice President of Lewis Management Corp. said. "At $2,100 though, you would have a townhouse with a two-car garage."
160 residents already live at the Harvest. When construction is finished, it will have 720 units. Chisel says the additional supply will help take pressure off prices in the area.
"Some will finish in 2018 and some will start in 2018, so I think we'll have a continued supply of new apartments for some time to come," Chisel said.
Fye expects rent to stay on its current course through this year.
"I think that vacancies are going to stay low and I think that rents are going to continue to creep up," Fye said. "Until a lot of this new development does come online, I think we're going to see the same trend."
Chisel says she thinks prices will level out sooner than later, as the new apartments become available.
"I don't think supply and demand are quite in parity yet but I think that's coming and I think you will see that in rent structure in the next few years," Chisel said.
Nevada is seeing high population growth and the unemployment rate is 4.8 percent.
"With Tesla and the big companies like that coming to town, there are a lot of people coming to the region and I think that that trend will continue for awhile as well," Fye said.
Along with new residents, Chisel says young locals are moving out of their parents' homes and getting places of their own, adding that many millennials would rather rent than own their own home.