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Market Report

Reno Multifamily Market Report

3Q 2023

Record Supply Wave Precedes Industry-Specific
Expansions, Lifting Near-Term Vacancy

Home prices and Class B rents a boon for luxury demand. Amid a span of elevated apartment construction, Reno’s Class A sector is outperforming its Class B and C counterparts from a demand standpoint. During the first half of 2023, luxury vacancy fell 70 basis points to 5.2 percent, while mid- and lower-tier rates rose by 80 and 110 basis points, respectively. The gap between the average Class A and B rent — less than $200 per month — is playing a role, as the relatively narrow margin makes a move-up in apartment quality financially feasible for more households. The mean Class A rent is also nearly $1,900 per month below the typical mortgage payment on a median-priced single-family home, placing some prospective homebuyers in the rental pool while interest rates remain high and for-sale listings are limited. These dynamics should aid the 1,900 units slated for second half delivery; however, concessions usage should be frequent.

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