Market Report
Reno Multifamily Market Report
2025 Investment Forecast
Nevada’s Cost Efficiency Facilitates Relocations,
Supporting the Metro’s Positive Rental Trends
Newer apartments gain momentum, while state legislation aids older stock. This year, Reno reports decreased supply pressure, with completions only a quarter of the level reported in 2024. This pullback is allowing demand to outpace supply for the first time in four years. Positive absorption has been driven by the relocation of professionals from neighboring states like California. This in-migration is due in part to the lower living costs offered in Nevada, including lower rents and no state income tax. While many white-collar workers in the metro were taking advantage of work-from-home policies in recent years, this era is beginning to wane. For the time being, professionals migrating to Reno should lean toward higher-income submarkets, such as the suburbs of Sparks and South Reno. As a result, upper-tier assets will be in demand over the near term, extending a recent trend. Class A and B segments saw a vacancy compression of 100 and 80 basis points, respectively, over the year ended in September 2024. Class C properties, meanwhile, are benefiting not only from lower living costs but also from rising wages. Nevada’s minimum wage rose by $2.50 per hour in July of last year, which coincided with the average effective rent for Class C units hitting a record mark during third quarter 2024.
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