After Reno enjoyed a sustained reign as the nation’s rent growth leader for several years before the COVID-19 pandemic, this small apartment market has seen the pace of rent hikes slow considerably in recent months. Reno is now logging one of the nation’s slowest effective asking rent growth rates, with an annual increase of just 1.2%, according to September data from RealPage Market Analytics. Meanwhile, the bigger nearby Las Vegas and Phoenix markets are logging much better annual rent growth performances just shy of 5%. One factor contributing to a pullback in rent growth in Reno has been the attention of investors in recent years. This market was pinpointed as a prime location for investment activity prior to the pandemic, given the market’s stability and potential, which led to a significant increase in construction. Since then, Reno has handled that new construction activity relatively well. Occupancy faded in the past year, but at about the same pace as U.S. norms. Further, the September rate remains above the essentially full mark of 95%. The recent pull back in rent growth, however, is an indication that increased supply volumes could weigh on this market in the near term.
