4Q 2025 Reno-Sparks Residential Activity Report Now Available 

The sole multifamily entitlement application found during our 4Q canvass of meeting minutes is a 107-unit workforce housing development on a vacant Lake St lot, reflecting the pull back on apartment construction after years of heated activity.  Only 442 MF units were added to Washoe County tax rolls in 2025, the lowest since 2014.  However, Johnson-Perkins-Griffin 4Q apartment survey is still showing sub-3% vacancy rates among class-A product and no crashing rents.  We continue to track a little over 2,000 MF units that are still under construction or newly available, over 6,000 approved MF units, and almost 4,500 MF units in conceptual stage.  New job growth and affordability will continue to favor MF construction.

We ended 2025 with 26 less new home sales than in 2024, according to county assessor data.  If you add attached SF product, there were only 10 less new home sales.

For existing homes, we sold 158 more homes in 2025 than in 2024, according to MLS data.  Outside of MLS reporting, county assessor data shows 378 more existing home sales in 2025.  For both new and existing home sales, the year could have been a lot worse if economic trepidations for 2025 were realized.

Current state of economy indicates not much will change in 2026.  Yes, wages are on the increase, but not enough to dent notes on $500+K homes while hovering at 6%+ mortgage rates.  All eyes are on AI.  If productivity and job growth ride the ripple, the Fed will have a hard time lowering interest rates, keeping mortgage rates elevated and sellers/buyers on the sideline.  If AI stocks see a bust due to low ROI, unemployment will surely rise, allowing the Fed to bring relief to rates and opening the door for an increase in residential real estate activity . . . for those still with a job (looking at you, health care).  The AI coin-flip will determine which residential product will see increased construction activity in 2026 and beyond.

The above analysis in no way was assisted by AI ☺.

Brian Bonnenfant
Project Manager
Center for Regional Studies
University of Nevada, Reno
(775) 784-1771