Reno Homebuilding Hits 9-Year High Amid Affordability Issues
Their finished lot and new home numbers are different than ours but the conclusions are the same: New home starts are up; home prices continue to rise but at a slower rate than 2015; and existing finished lots are dwindling but new lots are being built at a rapid pace.
Mark Krueger, Principal
Read the article written by Jason Hidalgo by clicking here.
New home construction is revving up in the Reno metro area.
The number of new homes that were being constructed in Reno from January to March shot up by 26 percent, the highest for a first quarter since 2007, according to housing analytics and data provider Metrostudy.
Increased demand combined with limited inventory for new and existing homes is fueling housing starts in the greater Reno area after years of reluctance from developers following the real estate market crash and ensuing recession.
Reno only had 117 finished vacant single-family homes in the first quarter of 2016, the lowest level since Metrostudy started tracking Reno’s market data in 2006. The number also equates to less than a month’s supply of new housing given current demand and the rate of absorption in the market. Existing homes are seeing brisk sales activity as well while commercial real estate in the region is also seeing a boost.
Although still not at the heady levels of 2005, confidence among home builders is higher than in recent years as an improving economy and job growth from new and existing companies is fueling buying activity.
“Builder confidence in the market continues to remain strong as the market is at 2008 levels,” said Greg Gross, Metrostudy director for the Reno market.
Be Sociable, Share!