RENO – A report released this week by the Nevada State Apartment Association (NVSAA) shows Northern Nevada apartment rents recorded modest increases over the past 12 months and declined during the past quarter.
The report, issued by the NVSAA based on data provided by CoStar, shows asking rents for apartments in the Reno-Sparks area through the third quarter of this year averaged $1,520 per month. That’s down from $1,550 per month at the end of the previous quarter, but up from $1,493 one year earlier.
According to the report, local apartment rents increased by 1.3% over the last 12 months. That’s down from the record-high 12-month rent increase of 12% set in mid-2021.
At an average of $1,520 per month, the report noted that local apartment rents are still below the national average rent of $1,630 per month and remain a relatively affordable option compared to nearby markets in California and elsewhere.
“Reno’s recent decline in rents is likely due, at least in part, to the wave of apartment development across the area,” said new NVSAA Executive Director Robin Lee. “Apartment construction tends to slow rent growth as competition for residents increases, combined with slowing in-migration.”
The report showed the supply of new apartments in Northern Nevada is slowing and overall activity is down compared to 2021. The Reno-Sparks market currently has 3,700 units under construction, representing an 8.8% increase in its overall apartment inventory.
Meanwhile, the vacancy rate for local apartments has been increasing, with the average vacancy rate now at 7.5%. That’s up from 6% during the previous quarter. During the same period in 2021, the local vacancy rate was 3.9%. More than 3,100 local apartment units were vacant at the end of the quarter, according to the report.
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.
