How is The Reno Real Estate Market 2019?
Buying Reno real estate can be a worthy investment opportunity. If you are looking at investing in the Reno real estate market as a potential investment opportunity, you must read till the end. If someone mentions Nevada, the first thought most of us have is Las Vegas. The city is home to gambling and a boom and bust real estate market that was as exciting as the gaming industry.
Reno is home to about a quarter million people, though the Reno real estate market is bigger than this. The Reno metro area includes suburbs around Lake Tahoe and give the area a population approaching half a million. 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. In the last twelve months, the investors in Reno have found good returns on their investments.
Is Reno going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a deep look at the latest Reno housing market trends and find out the prospects of investing in the Reno real estate in 2019.
Reno Real Estate Market Forecasts 2019 & 2020
According to Zillow, the median home value in Reno is $370,600. Reno home values have gone up 5.1% over the past year and their Reno real estate market prediction is that the prices will rise 1.7% by June 2020. The median list price per square foot in Reno is $231, which is higher than the Reno Metro average of $226.
The median price of homes currently listed in Reno is $439,900 while the median price of homes that sold is $362,100. The median rent price in Reno is $1,700, which is lower than the Reno Metro median of $1,795.
Here is the Reno real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.7% till June 2020.
Reno Housing Market Forecast 2019 – 2021
The Reno housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Reno housing market trend prediction is 81%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Reno, NV is 81% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Reno, NV Real Estate Forecast.
Reno Real Estate Market Trends
Reno real estate market trends indicate an increase of $8,250 (2%) in median home sales and a 1% rise in median rent per month over the past year. The average price per square foot for this same period rose to $234, up from $220. Trulia has 1,435 resale and new homes for sale in Reno, NV, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Reno for May 1 to Jul 31 was $370,500 based on 1,323 home sales. Average price per square foot for Reno was $234, an increase of 6% compared to the same period last year. The median rent per month for apartments in Reno for Jun 28 to Jul 28 was $1,895.
As per the real estate company named Redfin, the Reno housing market is somewhat competitive. Homes in Reno receive 1 offers on average and sell in around 54 days. The average sale price of a home in Reno was $395K last month, up 4.6% since last year.
The average sale price per square foot in Reno is $220, up 0.46% since last year. Homes typically receive 1 offer. Homes in the Reno housing market sell for about 1% below list price and go pending in around 54 days. Hot homes for sale in the Reno real estate market can sell for around list price and go pending in around 36 days.
Reno Housing Market Statistics
|Median Sales Price||$370,500 (On Trulia)|
|Price Per Square Ft||$234|
|Median Rent Per Month||$1,895|
|Median Household Income||$54,802|
|Transportation||95% people commute by car; 2% commute by public transportation|
There are 2,660 homes for sale in Reno, NV ranging from $14.5K to $15M on Realtor.com. 203 of which were newly listed within the last week. Additionally, there are 328 Reno rental properties, with a range of $219 to $4.3K per month. In June 2019 the housing market in Reno, NV was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
As per Realtor.com, in June 2019, the median list price of homes in Reno, NV was $425K, trending up 14.9% year-over-year. The median listing price per square foot was $223. The median sale price was $380,000. Homes in Reno, NV sold for approximately the asking price on average in June 2019. On average, homes in Reno, NV sell after 51 days on the market. The trend for median days on market in Reno, NV is flat since last month, and slightly down since last year.
The median list price in Reno, NV is $475,950 on Movoto.com. The median list price in Reno was less than 1% change from July to August. Reno’s home resale inventories is 1,120, which increased 3 percent since July 2019. The median list price per square foot in Reno is $235. July 2019 was $235. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.
Reno, NV Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
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.
As per the real estate company called Neigborhoodscout.com, the median house price in Reno, NV is $340,573, which indicates that home prices in Reno are well above the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Reno, accounting for 50.98% of the city’s housing units.
People in Reno primarily live in small (one, two or no bedroom) single-family detached homes. Reno has a mixture of owner-occupied and renter-occupied housing. Other types of housing that are prevalent in Reno include large apartment complexes or high rise apartments and duplexes.
Reno housing reached another milestone as the median house price broke the $420,000 mark for the first time. The median price for an existing single-family home in Reno reached $420,500 in May 2019, according to the latest date from the Reno/Sparks Association of Realtors.
The number represents a 5% increase from the previous month and a 6% jump from the same period last year. It also breaks the all-time record set in June 2018 of $404,500.
Currently, there are 1,255 single family homes for sale in Reno, NV on Zillow. Additionally, there are 204 single family homes for rent in Reno, NV. Under potential listings, there are about 9 Foreclosed and 88 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Reno, NV Foreclosures And Bank Owned Homes 2019
As per Zillow’s data, the percent of delinquent mortgages in Reno is 0.5%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Reno homeowners underwater on their mortgage is 3.8%, which is higher than Reno Metro at 3.5%.
|Foreclosures in Reno||174|
|Homes for Sale in Reno||1,490 (RealtyTrac)|
|Median List Price||$399,900 (0% ⇓ vs May 2018)|
There are currently 174 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 1,490. In June 2019, the number of properties that received a foreclosure filing in Reno, NV was 18% lower than the previous month and 39% lower than the same time last year.
Home sales for May 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Reno was $0. The median sales price of a foreclosure home in Reno was $0, or 0% higher than non-distressed home sales.
Best Places To Buy Real Estate In Reno, NV
If you are looking to buy real estate in Reno, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Reno real estate and you should be able flip it for a lump sum profit.
When looking to invest in Reno real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Reno investment property should be low. 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 and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 43 neighborhoods in Reno. There are 61 elementary schools, 28 middle schools, 29 high schools and 27 private & charter schools.
Some of the best neighborhoods in Reno, Nevada are Virginia Footills, Stead and Idlewild Park. 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 $169.5K.
Here are the 10 best neighborhoods in Reno to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Silver Lake Rd / Cassilis Dr
Echo Ave / Mount Anderson St
Clean Water Way / Mccarran Blvd
S Wells Ave / Kuenzli St
Selmi Dr / Sutro St
W 2nd St / N Virginia St
Mccarran Blvd / N Virginia St
S Arlington Ave / California Ave
Should You Invest In Reno Real Estate In 2019?
Is it worth buying a house in Reno, NV? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Reno is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Reno housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Reno but we have collected ten evidence based positive things for those who are keen to invest in the Reno real estate in 2019.
Investing in Reno real estate will fetch you good returns in the long term as the home prices in Reno have been trending up year-over-year. 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. The 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 home ownership 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. The 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
California’s high taxes, stifling regulation and incredibly high cost of living are 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 expats 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 take 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 is driving up property prices and contributing to the housing shortage.
4. The Relative Lack of Supply
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 about 2 percent in 2020.
5. The Sizable Student Market
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.
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
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 the roughly ten percent of homes in the area that are vacant.
Many of these properties could be bought from disinterested second home owners, especially in the tourist areas like downtown Reno or near Lake Tahoe.
8. The 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. The Landlord Friendliness
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.
10. The 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 area should remain rentable.
Reno Real Estate Investment
Maybe you have done a bit of real estate investing in Reno, NV 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.
A good cash flow 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 a key to your success. in If you invest wisely in Reno real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Reno investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Reno, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Reno, NV. The Reno housing 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.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Reno, NV is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Reno real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Bakersfield, CA. Bakersfield is developing and diversifying, maturing beyond the farming hinterland that led it to be written off as a California backwater.
Its stabilized real estate market won’t offer skyrocketing property valuations or equally shocking rental rates, but that makes it a good choice for investors seeking solid, steady returns.
Whether seasonal workers who will never settle down or locals whose seasonal employment precludes home ownership, this has created a strong rental market.
Median rents hovers around 1500 dollars a month for single family homes in the Bakersfield housing market. When you take apartments into account, the median monthly rent is a little under a thousand dollars a month.
Another sizzling market to choose for investment is 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 you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. 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.
Economics driving renting
Housing shortage / lack of supply
Landlord friendly https://www.avail.co/education/laws/nevada-landlord-tenant-law
Short term rentals
Influx from California
Housing Market Data, Trends & Statistics