Reno Navada Real Estate Update - 2024

Comprehensive Real Estate Report: Reno, Nevada

Executive Summary

This report provides an in-depth analysis of the real estate landscape in Reno, Nevada, focusing on the region's popular and fast-growing zip codes, crime rates and trends, economic and development plans, and demographic and population growth information. The findings are based on a variety of sources, including economic forecasts, crime data, and regional development reports. The aim is to offer a comprehensive overview for stakeholders interested in the Reno real estate market.

1. Popular and Fast-Growing Zip Codes

Reno, Nevada, is experiencing significant growth, with projections indicating a population increase from 504,000 in 2022 to 764,100 by 2060, marking a 51.6% growth (The Center Square). This growth is not uniform across the region, and certain ZIP codes are emerging as particularly popular and fast-growing areas.

South Meadows: Zip codes 89521, 89511
South Meadows is a rapidly growing area in Reno known for its newer housing developments, proximity to amenities, and easy access to outdoor recreation areas such as the Tahoe-Reno Industrial Center and Lake Tahoe.

Somersett: Zip code 89523
Somersett is a master-planned community located in the northwest part of Reno. It offers a variety of housing options, including single-family homes, townhouses, and luxury estates, along with amenities such as parks, golf courses, and community centers.

ArrowCreek: Zip code 89511
ArrowCreek is an upscale gated community nestled in the foothills of southwest Reno. It features custom-built homes, expansive lots, and panoramic views of the city and surrounding mountains.

Northwest Reno (Old Northwest/Mayberry): Zip code 89503
Northwest Reno, including areas like Old Northwest and Mayberry, offers a mix of historic homes and newer developments. It's known for its character, diverse architecture, and proximity to downtown Reno.

Damonte Ranch: Zip code 89521
Damonte Ranch is a master-planned community in south Reno known for its family-friendly atmosphere, recreational amenities, and newer construction homes. It offers a range of housing options, from starter homes to luxury residences.

Fast-Growing Areas:

Enterprise:
With a population growth of 126.5% since 2010, Enterprise is the fastest-growing city in Nevada, indicating a high demand for real estate in its ZIP codes.
Dayton: Zip code 89403
Dayton has seen a 56.8% increase in population since 2010, making it another area of interest for real estate investment.
Sparks: Zip codes 89431, 89434, 89436, 89441
As part of the Reno metro area, Sparks is experiencing significant growth, with its ZIP codes likely to be in high demand.

These areas are indicative of broader trends in the region, with zip codes in and around Reno likely to see increased interest from buyers and investors.

More neighborhoods and zip codes information are here

2. Crime Rate and Trend

The crime rate in Reno has shown a decreasing pattern, with the peak occurring in 2013 and the lowest point observed in 2019. Compared to the state and national averages, Reno has a lower total crime rate, with a -78.09% difference compared to the state and a -75.74% difference compared to the national average (CrimeData.io).

Specific Crime Trends:

Violent Crime: Reno's violent crime rate was -70.4% less prevalent compared to the state average and -56.51% less prevalent compared to the national average.
Property Crime: Reno boasted a -73.11% lower property crime rate compared to the state average and a -71.81% lower rate than the national average.
Homicide: The homicide crime rate in Reno was -64.61% lower than the state average and -56.48% less prevalent compared to the national average.

These trends suggest that Reno is relatively safe compared to other areas in Nevada and the United States, which could be a positive factor for real estate investment.

3. Economy and Development Plans

Reno's economy has diversified significantly since the Great Recession, expanding into logistics, operations, transportation, distribution, warehousing, and technology. The city has seen a boost in its economy, with job growth outpacing the national average. Economic opportunity is a key driver of population movement within the United States, and Reno's employment is projected to grow by 49.7% by 2060 (The Center Square).

Development Initiatives:

Downtown Revitalization: Efforts are being made to make downtown Reno cleaner, safer, and more vibrant, with projects like the Virginia Street Placemaking Study and the Truckee River Vision Plan.
Economic Diversification: The presence of major companies like Apple, Tesla, Panasonic, Google, and Switch has diversified the northern Nevada economy, contributing to its resilience and growth (CNN).
Entrepreneurship: A comprehensive assessment and strategy for empowering entrepreneurship in Nevada has been conducted to foster economic growth and stability (EDAWN).

These development plans are likely to enhance the attractiveness of Reno for businesses and residents, potentially leading to increased demand for real estate.

4. Demographic and Population Growth Information

Reno's population growth is a testament to its economic opportunities and quality of life. The city's population is expected to grow by 2.7% by 2025, with a cumulative growth of 3.7% by January 31, 2025 (Norada Real Estate). This growth is driven by both domestic and international migration, providing a diverse pool of potential renters and buyers.

Population Characteristics:

Diverse Migration: The influx of residents from different regions contributes to the cultural diversity and economic vitality of the city.
Young Professionals and Families: The presence of tech startups and a thriving business environment is attracting young professionals and families to Reno.

The demographic trends indicate a healthy and growing population, which is likely to sustain demand for housing and support the real estate market.

5. Business Incentives Attracting Businesses to Reno

The State of Nevada offers a variety of incentives designed to attract and assist businesses in their expansion efforts. These incentives include sales tax abatements on capital equipment purchases, sales and use tax deferral on capital equipment purchases, abatements on personal and modified business taxes, real property tax abatements for recycling, employee training grants, and Catalyst funding ("Expansion Incentives," n.d.). The Economic Development Authority of Western Nevada (EDAWN) plays a pivotal role in facilitating the application process for these incentives, providing a business toolkit and contacts for existing businesses seeking to expand (EDAWN, n.d.).

6. Job Growth and Employment Information

As of November 2023, Reno reported 274,000 jobs according to the Current Employment Statistics (CES) survey of employers, with the household-based Current Population Survey (CPS) showing 257,563 employed persons for the same month. Despite a slight job loss of 300 positions in November 2023 as per the CES survey, the CPS measure of employment rose by 1,479, indicating a positive trend in job growth ("Reno, Nevada Job Growth," n.d.).

The Reno metro area's unemployment rate as of December 2023 was a mere 0.2 percentage points above the nation's 3.7% rate, showcasing a resilient job market compared to the state of Nevada and Las Vegas, which had higher rates of 5.4% and 5.1%, respectively. This resilience is attributed to northern Nevada's economic diversification into logistics, operations, transportation, distribution, warehousing, and technology sectors ("Roadmap for the future," 2024).

7. Major Employers and New Business Movements

Existing Major Employers
Reno's economic landscape is supported by a mix of established institutions and companies. The Washoe County School District serves as a significant employer in the education sector, while Employers provides workers' compensation insurance to small businesses across the nation. Northern Nevada HOPES offers comprehensive community health services, and the University of Nevada, Reno stands as a major educational and research institution. Renown Regional Medical Center is a key player in healthcare, and the gaming and hospitality industry is represented by entities such as Atlantis Casino Resort Spa and Peppermill Resort Spa Casino (Zippia, n.d.).

New Business Movements
Recent business developments in Reno reflect the city's growing economic diversity. The Redwood Materials plant, a significant investment in the manufacturing sector, is expected to require around $2 billion over the next decade, signaling a shift from consumerism to industry-focused employment. Additionally, the Reno Public Market celebrated its first anniversary, indicating the success of new retail and community spaces in the region (Nevada Business Magazine, 2024).

The University of Nevada, Reno Innevation Center has appointed a Marketing Strategist in Residence, further strengthening the city's entrepreneurial ecosystem. The center has also launched an Entrepreneur Workshop Series for 2024, demonstrating a commitment to fostering startup growth and innovation (Nevada Business Magazine, 2024).

Furthermore, Reno's economic development authorities are shifting focus to attract headquarter businesses and life science industries, complementing the existing suite of industries and signaling a mature phase of advanced manufacturing in northern Nevada (Nevada Business Magazine, 2024).

8. Large Residential and Commercial Development Projects

Downtown Reno Developments
Downtown Reno is witnessing a renaissance with several projects aimed at revitalizing the city's core. The University of Nevada, Reno's Gateway project is a notable development, including a skyway bridge across Virginia Street and an RTC Rapid Transfer Station, slated for completion between 2021-2022 (Dickson Realty, 2020).

Reno City Center
The former Harrah's Reno is being transformed into the Reno City Center, featuring 530 market-rate apartments, 150,000 square feet of office space, 78,500 square feet of retail, and a public green space plaza. CAI Investments is utilizing Opportunity Zone funding, adhering to a 36-month construction timeline (Dickson Realty, 2020).

Court Street Project and Kimpton Hotel
Adjacent to the Truckee River, the Court Street Project, anchored by the Kimpton Hotel, will offer a mixed-use space with 270 rooms, 50 condominium residences, 60,000 square feet of office space, and 20,000 square feet of meeting space. The project's timeline is pending permit approval (Dickson Realty, 2020).

Keystone Commons
At the corner of Fifth Street and Keystone, Keystone Commons is set to provide a mix of residential and commercial spaces. The development's timeline is also dependent on permit approval (Dickson Realty, 2020).

ROC Expansion
The Reno Orthopedic Clinic is undergoing a $54 million expansion, adding a 76,000-square-foot facility to become the region's premier orthopedic center (Dickson Realty, 2020).

South Reno Industrial Project
The 580 South project, an 88-acre industrial development, broke ground in south Reno. This $155 million project by Panattoni Development Company includes space for retail, office, and multifamily use, with the first phase focusing on mass grading for four Class A industrial buildings (RGJ, 2024).

Mohr Capital's Industrial Facility
Mohr Capital completed a 596,400-square-foot Class A industrial facility at Tahoe Reno Industrial Center, fully leased before completion and sold during construction (Nevada Appeal, 2023).

9. New Construction Communities and Builders

New Construction Homes in Reno
Reno's new construction market is vibrant, with a variety of homes available from multiple builders:

Lennar offers homes starting at $494,950, with properties like The Peridot and a 4-bedroom home under construction at 6168 Cotton Rosser Road (New Home Source, n.d.).
Ryder Homes' Plan 3 starts at $629,990 in Sparks, NV (New Home Source, n.d.).
Jenuane Communities provides several options, including The Ascent | Plan 3 - 1765 in Carson City and The Quail Run in Fernley, NV (New Home Source, n.d.).
Paradiso Communities' Glenbrook - 1263 starts at $412,000 in Reno, NV (New Home Source, n.d.).
Carter Hill Homes offers the Ponderosa in Genoa, NV, starting at $720,000 (New Home Source, n.d.).

The Trails Community
The Trails Community is offering new 4-bedroom homes for 2024, featuring upgraded amenities such as quartz countertops and gas fireplaces (Redfin, n.d.).

Diamond J Neighborhood
A newly built custom home in Reno's premier Diamond J neighborhood showcases luxury features and finishes (Redfin, n.d.).

Rancharrah Estate
The Allure Elite design offers semi-custom homes within the gates of the iconic Rancharrah Estate, with primary ensuite and office space on the main level (Redfin, n.d.).

10. Real Estate Listing Inventory and Price Trend Information

Market Trends
The Reno-Sparks real estate market has seen fluctuations in sales and prices. As of January 2024, the median home price fell to $565,000, a 5.3% decrease from December but a 4.9% increase year-over-year. The median sold price per square foot also decreased to $292.49, a 3.1% decrease from December (Reno Realty Blog, 2024; Norada Real Estate Investments, 2024).

Inventory Dynamics
The condo/townhome segment experienced a 10.4% decrease in median sales price from December to $345,000, although this is a 7.0% increase year-over-year (Norada Real Estate Investments, 2024).

Housing Market Forecast
Zillow forecasts a modest increase in home values, with the average home value in Reno at $522,774 as of January 31, 2024. The Reno MSA is expected to see a growth rate of 0.2% by February 29, 2024, and 1.2% by April 30, 2024 (Norada Real Estate Investments, 2024).

Inventory Levels
For homes priced under $400,000, there are 4.7 days of standing inventory in Reno/Sparks, and for homes ranging from $400,000 to $700,000, inventory is about 10 days (Dickson Realty, 2022).

Conclusion

Reno, Nevada, emerges as a dynamic real estate market marked by significant population growth, declining crime rates, robust economic development plans, and a diverse and expanding demographic. Its strategic location, coupled with economic diversification and quality of life, renders it an attractive destination for residents and investors alike. As Reno evolves, its real estate market is primed to offer a plethora of opportunities for those seeking investment in the region.

Amidst robust economic growth and diversification, Reno strategically employs business incentives, making it an appealing destination for companies seeking expansion or relocation. The city's steady job growth reflects resilience against national economic fluctuations, with major employers providing stability while new businesses and industries contribute to a dynamic economic landscape. Reno's ability to adapt and thrive underscores the potential for regional economies to prosper in a changing world.

Across residential and commercial sectors, Reno experiences significant growth and development. The downtown area undergoes revitalization with new projects, while the industrial sector expands with large-scale developments. The active new construction market offers a variety of homes and communities from reputable builders. Despite recent fluctuations, the real estate market displays resilience, signaling a positive outlook for the future. Stakeholders are advised to remain informed and adaptable to capitalize on the evolving opportunities within Reno's real estate landscape.

To see more Reno neighborhoods, click here

References

The Center Square. (n.d.). Reno, NV Will be Among the Fastest Growing Cities by 2060. Link
HomeSnacks. (n.d.). Fastest Growing Cities In Nevada. Link
CrimeData.io. (n.d.). Total Crime in Reno, Nevada. Link
City of Reno. (n.d.). Economic Development. Link
CNN. (2024, February 8). Nevada Economy Primary. Link
Economic Development Authority of Western Nevada (EDAWN). (n.d.). Reports. Link
Norada Real Estate. (n.d.). Reno Real Estate Market. Link
Expansion Incentives. (n.d.). EDAWN. Link
Nevada Business Magazine. (2024, January 19). EDAWN Invites Nevada Entrepreneurs to Pitch Start-Ups–Season 2 of Elevate Reno. Link
Reno, Nevada Job Growth. (n.d.). Department of Numbers. Link
Roadmap for the future. (2024, February 8). CNN. Link
Zippia. (n.d.). Best Companies In Reno, NV. Link
Dickson Realty. (2020, September). Downtown Reno Developments. Link
RGJ. (2024, January 31). 88-acre industrial project on Mount Rose Highway breaks ground. Link
Nevada Appeal. (2023, January 9). Mohr Capital plans Fernley, Reno projects to start 2023. Link
New Home Source. (n.d.). New Construction Homes in Reno, NV. Link
Redfin. (n.d.). New Homes for Sale in Reno, NV. Link
Reno Realty Blog. (2024, February). January 2024 Market Report for Reno and Sparks, Nevada. Link
Norada Real Estate Investments. (2024, February 14). Reno Housing Market Trends and Forecast for 2024. Link
Dickson Realty. (2022, March). Reno/Sparks Inventory Report – February 2022. Link