More New Apartment Product is Delivering in Reno

After seeing limited new supply for the first eight years of this economic cycle, Reno’s delivery pipeline has never been fuller. In year-ending 3rd quarter 2019, the Nevada market grew by more than 1,400 units, accounting for a 3.4% increase in inventory. In the next year, another 2,160 units will be delivered in Reno, growing inventory by 5%. Next year’s scheduled completion volume is roughly four times the average annual new supply volume in Reno this cycle. The market is landing more development after spending years high on most performance rankings lists. Reno has remained among the top 10 rent performers since 2016, and the market has also placed high for occupancy. With more new supply coming online recently, however, performance has softened somewhat. The 2.7% annual rent increase in 3rd quarter 2019 was the smallest since 2013. Occupancy remains solid at above 97%.