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What About Investing in the Reno Real Estate Market?

by Heba BakerOct 3, 2018November 22, 2023

Do you want to invest in the Nevada real estate market? Why not invest in Reno real estate?

Reno is the third biggest city in Nevada and has, over the years, proven to be one of the best cities to invest in real estate. The Reno real estate market is one of the fastest growing markets in the country. The Reno housing market has witnessed increased average home prices, equity gains, and yet, it’s at a traditionally strong level of affordability. With massive price gains comes increased appreciation. Reno real estate is only expected to become more valuable with time.

Reno Real Estate Market

The fact is, Reno, Nevada hasn’t always been booming like this. The Reno real estate market was actually affected much more than any other market in the country when the housing market collapsed. Reno real estate investors, however, will be glad to hear that equity appreciation has not only stabilized but has also managed to outpace the national average in recent years. This is a good indicator of a growing, sustainable market. So just like Las Vegas real estate, Reno real estate is now thriving.

Other Indicators of a Thriving Reno Real Estate Market

There have been many economic indicators favoring the Reno real estate market. One example of this is how the unemployment rate has dropped from 8.4% last year to 7% this year. The city’s job growth rate is also a considerable rate to mention. The 1-year job growth rate of 3.3% is well above the national average. What does employment have to do with Reno real estate? Well, these are the encouraging factors driving people to move to Reno. This, in return, will definitely benefit the Reno housing market.

These effects have already shined through on the Reno housing market. There has been a number of new construction permits in the past years. To get a better idea, 1,500 new single-family permits were applied for in one year alone. With construction clearly on the rise, real estate investors can definitely expect to find a good inventory of Reno investment property.

What About Airbnb Reno?

Before investing in Airbnb in any city, you should always ask yourself: Is Airbnb legal here? In the case of Reno real estate, there doesn’t seem to be any regulations against Airbnb investments. Washoe County, which includes Reno, does not have specific regulations, caps or even license requirements for vacation home rentals. While there hasn’t been official recognition of Airbnb in Reno like there was for New York City or San Francisco, it’s safe to say you won’t be facing any problems by investing in Airbnb Reno.

Reno Real Estate – The Data

Now that you know what to expect from the Reno housing market and what to look out for, it’s time to get down to the real estate analytics. Using Mashvisor’s investment property calculator, we have assessed the Reno real estate market based on key real estate metrics. These are the measures and metrics you always want to check on before making a real estate investment anywhere: cap rate, cash on cash return, rental income, and occupancy rate. Our investment property calculator has provided these metrics on the city level for Reno real estate (both traditional and Airbnb investments). Here’s what you need to know.

Reno Real Estate Market: City-Level Data

Median Property Price: $465,600
Price per Sq/Ft: $232
Monthly Airbnb Rental Income: $2,800
Monthly Traditional Rental Income: $1,492
Airbnb Cash on Cash Return: 4.45%
Traditional Cash on Cash Return: 0.81%
Airbnb Cap Rate: 4.45%
Traditional Cap Rate: 0.81%
Airbnb Occupancy Rate: 61.51%

Upon first glance, we can clearly see which rental strategy is dominant in the Reno real estate market. The most profitable investments seem to be Airbnb rentals rather than traditional rentals. However, that might not be true for all the neighborhoods in Reno. Let’s get into the best neighborhoods in Reno for real estate investment based on each rental strategy with Mashvisor’s neighborhood analysis.

Best Neighborhoods for Airbnb Rentals

Here are two of the best neighborhoods for Airbnb real estate investing in Reno, Nevada.

Northeast

Median Property Price: $256,415
Price per Sq/Ft: $183
Monthly Airbnb Rental Income: $2,505
Airbnb Cash on Cash Return: 5.24%
Airbnb Cap Rate: 5.24%

West University

Median Property Price: $381,545
Price per Sq/Ft: $262
Monthly Airbnb Rental Income: $2,966
Airbnb Cash on Cash Return: 4.01%
Airbnb Cap Rate: 4.01%

Best Neighborhoods for Traditional Rentals

Here are two neighborhoods in which traditional rentals perform well in Reno, Nevada.

Golden Valley

Median Property Price: $332,245
Price per Sq/Ft: $198
Monthly Traditional Rental Income: $1,679
Traditional Cash on Cash Return: 2.21%
Traditional Cap Rate: 2.21%

North Valleys

Median Property Price: $290,989
Price per Sq/Ft: $187
Monthly Traditional Rental Income: $1,321
Traditional Cash on Cash Return: 1.63%
Traditional Cap Rate: 1.63%

If you still aren’t convinced that Reno real estate is the right investment choice for you, the following is about to change your mind. We’ve used our Property Finder to locate some top-performing investment properties currently listed for sale in Reno, Nevada. It’ll only take you a couple of minutes; check out these impressive specs.

Potential Investment #1

Investment Type: Airbnb
Property Type: Condo/Coop
Property Neighborhood: Northeast
Listed Property Price: $265,000
1,386 Sq/Ft
$191 per Sq/Ft
4 Beds and 4 Baths
Airbnb Comparable Rental Income: $5,493
Airbnb Cash on Cash Return: 14.24%

Potential Investment #2

Investment Type: Airbnb
Property Type: Townhouse
Property Neighborhood: Northeast
Listed Property Price: $97,000
665 Sq/Ft
$146 per Sq/Ft
1 Beds and 1 Bath
Airbnb Comparable Rental Income: $2,837
Airbnb Cash on Cash Return: 14.10%
Occupancy Rate: 98%

Potential Investment #3

Investment Type: Traditional
Property Type: Single Family Residential
Property Neighborhood: North Valleys
Listed Property Price: $75,000
2,080 Sq/Ft
$36 per Sq/Ft
3 Beds and 2 Baths
Traditional Comparable Rental Income: $1,260
Traditional Cash on Cash Return: 6.58%
Occupancy Rate: 97%

For more details on these properties and others in Reno, Nevada, click here. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.

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