New residential entitlements remain tepid and are expected to remain lukewarm as the world navigates restricted energy supplies and other hanging chads.  Only three projects appeared on the 1Q radar: another Toll Brothers townhome project for Talus Valley (formerly known as Daybreak) and more townhomes in Damonte saw their tentative maps approved.  Ryder Homes snuck in their Miramonte Phase 7 which is now under construction and selling single-family units (I discovered their entitlement thru home sales), after fully absorbing Miramonte Phase 6.

With mortgage rates on the slight increase due to geopolitics, residential demand should continue to favor multifamily.  However, a peak at their permit activity (page 16 in Market Summary section) shows a significant construction activity contraction.  On the other hand, average apartment rents nearly reached the $1,800 mark in 1Q (page 17) while vacancies continue to squat in sub-3%, indicating continued demand.  We continue to show 2,000+ market and non-market rate MF units under construction or new units waiting for initial residents.

After Nevada Department of Employment’s “great shakeout” of their employment estimates in March (annual “benchmark” revisions), we saw Reno MSA’s 2025 employment growth be revised from 1,900 new jobs to 3,775.  Although employment growth in 2025 was less than half of pre-pandemic levels, the bump in the annual total faced down a year with great uncertainty, sticky inflation, and tariff wars.  Although 2026 employment estimates will also suffer the same revision fate, preliminary estimates for 1Q show 6,500 new jobs were added in the Reno MSA, year over year.  On top of today’s surprisingly strong jobs report and the continual boost from the California “diaspora”, our local economy remains relatively stellar.  The downside of such signals is the pressure to keep interest rates locked in, however.

I hope you enjoy your summer and unplug in our region’s great outdoors.  In these uncertain times, it’s almost mandatory.

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