If you are looking at buying an investment property in the Reno real estate market, you’ll find all the housing statistics on this page to help you make a sound decision. The real estate market in Northern Nevada has been growing strong and steady. Home prices and demand have surged in the Reno housing market over the last decade. As a result of an influx of companies and jobs in Northern Nevada, strong housing demand continues to put pressure on the available supply.
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. Despite slow down in real estate sales due to COVID-19, the median price for an existing single-family home in the city of Reno went up to $439,500 in April 2020, a nearly 10% increase from a year ago.
The end of the first quarter of 2020 saw no indication of prices coming down in the Reno area. That’s mainly due to the low inventory of homes as home sellers are holding off on listing their properties until the pandemic is over. The median price in March was $430,000 — a 6 percent increase from February ($405,373) and a 10 percent increase from March 2019. Let’s talk a bit about Reno before we discuss what lies ahead for investors and homebuyers.
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.
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. The real estate appreciation rate in Reno in the last quarter was around 0.75%, which amounts to an annual rate of 3.05%. The median price for an existing single-family home in the Reno-Sparks area went up to $416,500 in April 2020, a record-high.
In this article, we shall discuss some more important reasons why you may still want to consider buying Reno investment properties in 2020. You will get a fair amount of knowledge of the fundamentals of this hot real estate market. Please note that many variables can potentially impact the value of a home in Reno (or any other market) and some of these variables are impossible to predict in advance. Let’s take a deep look at the latest Reno housing market trends to know what lies ahead.
Reno Housing Market Trends & Statistics 2020
We shall now discuss some of the most recent housing trends in the Reno area and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. The residential real estate market in Reno continues to churn unimpeded even in the times of COVID-19.
Reno has been one of the hottest real estate markets in the country for many years. In the past ten years, the annual real estate appreciation rate has amounted to 6.75% in Reno, according to NeighborhoodScout.com. This puts Reno in the top 10% nationally for real estate appreciation.
Due to low months supply of inventory, Reno is the seller’s real estate market – which means that the demand from buyers is exceeding the current supply of homes for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The shortage of supply and an increase in the demand for housing is pushing the prices higher in the Reno housing market.
Reno housing had reached another milestone when the median house price broke the $420,000 mark for the first time in May 2019. It had broken the all-time record set in June 2018 of $404,500. The median sales price in Reno for an existing single-family residence in March 2020 was $430,000; an increase of 10 percent from March 2019 and a 6 percent increase from the previous month. The existing condominium/townhome median sales price for March 2020 in Reno was $262,500; an increase of 3 percent from the prior month.
The following analysis of the Reno housing market (including North Valleys) has been prepared by the Reno/Sparks Association of REALTORS®. The report compares key housing metrics of the “city of Reno” from April 2020 with April 2019.
In April 2020, Reno (including North Valleys) had 252 sales of existing single-family homes: a decrease
of 31 percent from last year and a 30.4 percent decrease from the previous month.
The median sales price for an existing single-family residence was $439,500; an increase of 9.9
percent from last year and a 2.2 percent increase from the previous month.
The existing condominium/townhome median sales price in April 2020 was $245,000; a decrease of 4.3
percent from last year.
On Movoto.com, Reno’s current home resale inventory number is 676, which has decreased by 12 percent from a year ago. Compared to last month (April) the inventory has increased by 9%. The median list price per square foot in Reno is $246. April 2020 was $240. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May.
Reno Housing Market Statistics
1 Month Ago
1 Year Ago
Median List Price
Median Days on Movoto
Median Home Size
Data Courtesy of Movoto.com
In conclusion we can say that these numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has not had any major impact on Reno’s 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 are helping sellers to move their properties quickly.
Reno Real Estate Market Forecast 2020 – 2021
What are the Reno real estate market predictions for 2020? 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 2012, the median home prices in Reno have appreciated by roughly 143% from $166,000 to $403,318, according to Zillow’s data.
The Zillow Buyer-Seller Index (BSI) considers Reno a buyer’s real estate market. This is computed monthly. According to their index, there exists a general lack of demand in Reno, and homes can linger on the market longer and ultimately sell for less, putting negotiating power in the hands of buyers. In other words, based on the last month’s key housing market indicators, current supply is exceeding the demand, giving buyers an advantage over sellers in price negotiations. There are more homes for sale than there are active buyers in the marketplace.
Reno’s home values have appreciated by 2.5% in the past year. The latest Reno real estate market forecast is that the home prices may remain flat or decrease by 1.6% – in the next twelve months. This could be due to the short term impact of the ongoing pandemic which has impeded the real estate sales activity in the entire nation. In the long term, the Reno real estate market remains strong to favor sellers, due to persistent imbalance in supply and demand.
Here is the visual representation of historical Reno home prices and the latest forecast until March 2021.
Snapshot Courtesy of Zillow.com
Here is a short and crisp Reno housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Reno is 81% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Reno is 81% during this period. If this price forecast is correct, the Reno home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Reno Real Estate Market: Reno, NV Homes For Sale
The Reno housing market has a mixture of owner-occupied and renter-occupied houses. According to Neighborhoodscout.com, a real estate data provider, 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 the Reno’s housing units. At the national level, the single-family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single-family rental units. With 2020 being, theoretically, in the middle of a boom, there are still 4 years for residential construction to surge. Most likely, a housing shortage will remain in 2020, keeping home prices high.
Currently, there are 863 homes for sale in Reno on Zillow.com, an online real estate database company. Additionally, there are 105 homes for rent. Under potential listings, there are about 6 Foreclosed and 90 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
The median list price per square foot in Reno is $228, which is higher than the Reno Metro average of $225.
The median price of homes for sale is $429,500.
The median price of homes that were sold in March is $394,500.
The median rent price in Reno is $1,795, which is the same as the Reno Metro median of $1,795.
There are currently 2103 homes for sale and 321 homes for rent in Reno on Realtor.com, a real estate listings website. According to their data, in April 2020, Reno was a buyer’s real estate market, which means there are roughly more active homes for sale than there are buyers. The supply for housing outpaced the demand.
The median list price of homes in Reno, NV was $329.9K in April 2020, trending down -19% year-over-year. The median listing price per square foot was $177. The median sale price was $425K. 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 99.5% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.
Graph Courtesy of Realtor.com®
Reno Real Estate Market: Foreclosure Statistics In 2020
Here are some foreclosure statistics of the Reno real estate market. As per the Reno foreclosure data by Zillow, the percent of delinquent mortgages in Reno is 0.5%, which is lower than the national value of 1.1%. The percent of Reno homeowners underwater on their mortgage is 3.8%, which is higher than Reno Metro at 3.5%. During the foreclosure crisis, investor activity in the Reno area raised concerns in a region that was deemed one of the hardest-hit markets in the country. A “Reno Gazette Journal” investigation had found out that the distressed homeowners being taken advantage of in short sales that used “pocket” or “five-second” listings to favor pre-arranged buyers.
There are currently 156 properties in Reno, NV that are in some stage of foreclosure (default, auction or bank-owned) while the number of homes listed for sale on RealtyTrac is 1,033. In April 2020, the number of properties that received a foreclosure filing in Reno, NV was 96% lower than the previous month and 96% lower than the same time last year.
Potential Foreclosures in Reno
Homes for Sale in Reno
Median List Price
$415,000 (4% drop vs Mar 2019)
Here is the graph showing the number of new foreclosure filings in Reno by the foreclosure type.
Reno Real Estate Market: Is It A Good Place For Investment?
Now that you know where Reno is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. 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 the 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.
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.
1. 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 400,000 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.
2. 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.
3. The Influx from California Is An Advantage For Reno
California’s high taxes, stifling regulation and incredibly high cost of living is 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.
4. 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 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 about 5 percent in 2019 and are expected to rise by about 2 percent in 2020. Keeping in mind the short term effects of COVID-19, the prices may remain flat until the first quarter of the year 2021.
5. 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 the city view is your best bet for a rental property for students and family.
6. The Geographical Limits
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.
7. The Buying Opportunities in Reno, NV
The Reno housing market has cooled because there isn’t enough demand for the top end of the market to keep it appreciating at the same five percent rate it has for years. We can’t suggest hunting for foreclosures, because the foreclosure rate is actually low. Where about 1 out of every several hundred homes in the U.S. are in foreclosure, that rate is more like one out of 1000 or 2000 homes in the Reno housing market. The greater issue is roughly ten percent of homes in the area that are vacant. Many of these properties could be bought from disinterested second homeowners, especially in the tourist areas like downtown Reno or near Lake Tahoe.
8. 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.
9. 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 home. 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 by giving tenants more time to go through the evictions process, this will make it more difficult for owners to get their properties back on the rental market.
10. Reno’s Complex Rules on Short Term Rentals
The Tahoe area has nearly banned short term rentals unless you own a bed and breakfast. However, unincorporated areas in the Reno real estate market have not yet decided to ban short term rentals. Note that Reno real estate investment properties that get permission for short term rentals now will be grandfathered in if any future laws limiting rentals via AirBnB pass later. The main opposition is to short term rentals in residential neighborhoods, so homes rehabbed and rented out in touristy areas should remain rentable.
Reno Investment Properties: Real Estate Investment
Are you looking for an investment property in the Reno real estate market? Maybe you have done a bit of real estate investing in Reno but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. The Reno real estate market is ideal for investors for a number of 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 the 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 the Reno and want to purchase property to rent out.
The three most important factors when buying a real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Reno investment property and you should be able to flip it for a lump sum profit.
The neighborhoods in Reno must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. Some of the best neighborhoods in Reno, Nevada are Virginia Foothills, Stead, and Idlewild Park.
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.
The median home price in East Reno is about $225,000. Northeast Reno is a popular neighborhood with a median price of $196,000 and the home value forecast of 6.2%. Montreux has a median listing price of $1.3M, making it the most expensive neighborhood. Smithridge is the most affordable neighborhood, with a median listing price of $169,500.
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.
If it is your first time to invest in Reno real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property, and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your own research or hiring a real estate investment specialist for guidance.
NORADA REAL ESTATE INVESTMENTS has 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.
Consult with one of the investment counselors who can help build you a custom portfolio of Reno turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of 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 Reno turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
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.
Is It The Right Time To Invest? – The national homeownership rate is on the decline for the first time since 2017. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. In 2018, Millennials made up about 22 percent of the population in the United States. They’re literally choosing to rent over buying a single-family home or an apartment. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Moreover, it’s even harder to take out a mortgage for those who have student loan debt.
Reno & Neighboring Markets For Real Estate Investment
Las Vegas is another hot real estate market in the state of Nevada. The Las Vegas real estate market kicked off well in 2020, 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 2020. They are predicted to gradually increase or remain stable in 2020 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 current local housing inventory in Las Vegas is just over a two-month supply of homes available for sale. 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 as 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 2.1%. Median days on market is 30.5 days, with inventory moving 6 percent faster than last year and 30.5 days faster than the U.S. overall. Home prices in Salt Lake City are expected to rise by record levels in 2020. 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 a number of 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Latest Market Data, Trends, and Statistics
Economics driving renting
Housing shortage/lack of supply
Short term rentals
Influx from California
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