In a year that defied simple descriptors, the performance of Reno – Tahoe real estate leaned heavily to the good in 2020. The early days of the pandemic had a stymying effect on real estate as the simple logistics of touring and transacting residential property rendered most activity infeasible. However, as businesses adapted and consumers calibrated to a new normal, the trends that have driven demand for the region of the last decade accelerated activity to near-record levels.
Reno has been the beneficiary of a growing exodus of California businesses and individuals in search of a more reasonable cost of living, reduced density and a higher quality of life. The series of shock events experienced in California over the last year ranging from strict quarantine orders to wildfires and civil unrest have only fueled the want to look across the border.
In 2020, Reno – Tahoe saw 12,690 residential transactions: a figure 2% better than a very strong 2019 and second only historically to 12,858 sales in 2017. To the extent that Bay Area emigrants were able to exit with peak equity in hand, the value proposition offered by Northern Nevada remained compelling. Median price improved by 12% year over year to a record high of $375,000. Average price, an indicator of demand for premium quality home sales, grew by 20%.
As the year progressed, the market skewed ever farther in favor of sellers as supply constricted to a mere 7 weeks of inventory. Correspondingly, days on market shrank to just 61 while multiple offers become the norm in most price points below $1 million.
With demand unwavering and supply exhausted, it appears that 2021 will show little erosion of the gains made over the last year. While the world yearns for a return to normalcy, the revelation of the benefits inherent to a mountain lifestyle are likely to linger in a way that keeps Reno – Tahoe on the forefront of consumers’ minds.
News about the state of the region heading into 2021:
With housing still at a critical shortage, one tower of the former Harrah’s has converted to residential housing.
Residential rents have hit all-time highs.
Though still down, jobs are slowly returning throughout Nevada.
Construction has outperformed most other job sectors as home and office demand continues throughout the region.
Many Reno businesses have benefitted from California’s latest stay-at-home orders; particularly those in the winter resort industry.
Some themes have been present for the last several years, but have accelerated through the tumult of the last year:
Another 10,000 square foot manufacturing business is coming to Reno. Rather than a Bay Area company relocating, this group comes from Germany.
While Amazon expands its Nevada footprint.
Continuing to corner the market in energy innovation, a Nevada Company enters into MOU with global providers to collaborate on improved supply chain for batteries
Finally, RGJ’s Year in Photos, 2020…