RENO – A report released this week by the Nevada State Apartment Association (NVSAA) shows Northern Nevada apartment rents are no longer rising, with average rents at the end of 2022 down slightly from one year earlier.
The report, issued by the NVSAA based on data provided by CoStar, shows asking rents for apartments in the Reno-Sparks area through the fourth quarter of 2022 averaged $1,490 per month. That’s down from $1,520 per month at the end of the previous quarter, and down from $1,493 one year earlier. It’s also a significant change from the middle of 2021, when rents rose by a record high of 12% year over year.
At an average of $1,490 per month, the report noted that local apartment rents are still below the national average rent of $1,620 per month and remain a relatively affordable option compared to nearby markets in California and elsewhere.
Meanwhile, the vacancy rate for local apartments has been increasing over the past 12 months, with the average vacancy rate now at 8.5%. That’s up from 7.5% during the previous quarter.
The report showed the supply of new apartments in the area has expanded significantly over the past few years. More than 1,000 new units entered the market annually since 2018, with a total of 7,200 units added over the past five years. The Reno-Sparks market currently has 3,900 units under construction, which will increase the overall local apartment supply by 9.2%.
“Reno’s flat growth in rents is likely due, at least in part, to the wave of apartment development across the area, with 1,300 new units added over the past year,” said new NVSAA Executive Director Robin Lee. “Most likely, demand will struggle to offset supply pressure in the coming months, with the significant increase we’re seeing in inventory.”
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 1,057 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.
