RENO – A report released this week by the Nevada State Apartment Association (NVSAA) shows Northern Nevada apartment rents starting to stabilize during a period of unprecedented growth in the local apartment market.
The report, issued by the NVSAA based on data provided by CoStar, shows asking rents for apartments in the Reno-Sparks area through mid-February of this year averaged $1,490 per month. That was down slightly from $1,493 per month through the end of 2021, but up from $1,379 one year earlier.
According to the report, local apartment rents increased by 9% over the last 12 months. That’s down from the all-time high annual growth rate of 13.3% set in mid-2021.
At an average of $1,490 per month, the report noted that local apartment rents are still below the national average rent of $1,560 per month.
“We’re forecasting nearly an 8% rent growth year over year in Northern Nevada by the end of 2022,” said NVSAA Executive Director Susy Vasquez. “Rents are expected to continue going up, but not at the double-digit growth rate we’ve experienced over the past two years.”
The supply of apartments in Northern Nevada is also increasing. The report showed 3,182 units under construction in the Reno-Sparks market, representing a 7.8% increase in Reno’s overall apartment inventory and “a high point for the number of units under construction at one time.”
Even with so many new apartments being built, net absorption is high, totaling nearly 1,200 units over the last 12 months. According to Vasquez, the vast majority of this activity involves high-end, four-star and five-star properties, which accounted for about 1,100 of the units being absorbed.
Meanwhile, the vacancy rate for local apartments continues to stabilize into early 2022, with the average vacancy rate now hovering around 5.5%. That’s down from 6.2% during the same period in 2021.
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.