Reno, Nevada's multifamily sector is heading back to normalization, following Covid and the supply boom period that ensued immediately after. New supply in the first quarter in the Northern Nevada city totaled just 198 units, down from the 313 deliveries posted in the same period a year ago. Also, construction has dropped slightly to 1,343 compared with 1,431 units.
As a result, many core fundamentals are showing improvement. Vacancy dropped by 90 basis points year-over-year to 3.7 percent. Performance based on this category is being shaped by property quality and location.
"The market absorbed elevated new supply delivered between 2022 and 2024," Colliers said.
"The initial increase in vacancy largely coincided with a wave of new supply deliveries that temporarily outpaced absorption, rather than a sharp deterioration in underlying demand."
But this time around, demand of 279 units outpaced the supply, although absorption was higher at 507 units in the first quarter of 2025. Additionally, rents accelerated to $1,729 on average per month, from $1,618.
Plus, investor demand is returning. Multifamily sales in Reno hit $121.6 million in the first quarter, which is in line with what the market has averaged since 2020.
"Investor confidence improved as deal velocity picked up from the uneven activity that characterized 2024 and early 2025," Colliers said.
RCMI made the largest buy in the first quarter, with its $96.25 million acquisition in South Reno. The next closest was Weiss Family Properties, with its $10.39 million buy, followed by Lsop-Lakeside LLC's $5 million purchase — both in South Reno as well.
Currently, Colliers said that multifamily investors in Reno are concentrating on long-term opportunity and stable fundamentals over short-term surging rents.
But the main theme is the declining supply, which points to a "more balanced outlook moving forward," according to the CRE brokerage.
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