After a decade of strong momentum, Northern Nevada’s multifamily sector is entering a period of recalibration. Market-rate apartment construction has slowed, rent growth has plateaued, and high interest rates continue to challenge project economics. Even as population and job growth persist, the numbers just aren’t penciling for many developers—yet.
NAIOP Northern Nevada sat down with industry leaders Bryce Clutts (Metcalf Builders), Dan Lorenz (TriEx Strategies), Lane McQuatt (Royce Baylor Construction & Development LLC), and Ben Galles (CBRE) to discuss current conditions, future forecasts, and how multifamily development is shifting across the region. Here’s what they had to say about where we are—and where we’re headed.
Q: What trends are currently shaping the multifamily market in Northern Nevada?
Dan Lorenz: There’s been a clear pullback. Construction costs remain high, rents have stabilized, and there have been significant increases in fees from municipalities. If rent growth isn’t there and costs don’t ease, new construction just doesn’t pencil for the time being.
Ben Galles: A wave of deliveries in late 2023 created a lot of competition, especially in Class A product. Lease-ups slowed, concessions increased, and new development has been tough. The upside is that overall quality has improved.
Ben Galles
Q: How does Northern Nevada compare to other similar markets?
Bryce Clutts: It’s more expensive to build here than in surrounding metropolitan areas such as Las Vegas, Salt Lake, and Phoenix. Our trade base is smaller, so costs are closer to Northern California. Developers are often surprised by that delta, and it’s a real challenge.
Galles: Our job base is more diversified—we’re not solely dependent on hospitality. Logistics, tech, and manufacturing provide stability. Plus, no housing at TRIC pushes demand into surrounding communities.
Bryce Clutts
Lane McQuatt: Affordable housing is still active, particularly senior-focused projects. We’re also seeing interest in build-to-rent townhomes and some high-density for-sale options, especially in Fernley and Fallon.
Galles: Areas designated as Difficult Development Areas (DDAs) or Qualified Census Tracts (QCTs) offer incentives that help affordable pencil. There’s also strong demand for single-family rentals as mom-and-pop landlords continue to exit the market.
Dan Lorenz
Q: How are tenant preferences changing—and how is that influencing design?
Lorenz: Renters want attainable housing. Amenities like pools aren’t as valued as in-unit washers and dryers. Pools also drive up insurance and maintenance costs.
McQuatt: Affordable projects are cutting back on high-cost amenities and focusing on practical ones—tot lots, dog parks, and workspace in clubhouses.
Galles: Projects like Seasons at Stonebrook and The Kallan show that well-built, reasonably priced apartments lease up faster than over-designed Class A units.
Lane McQuatt
Q: What strategies are your clients using to adapt?
Clutts: It’s about design efficiency. We work with developers early in the design to create a constructable and efficient product. Reducing material types or rethinking amenities can make or break a project. Smart, economical design is key.
Galles: Some groups are shifting to longer-term holds. With rising cap rates and fewer buyers, build-to-rent developers are often choosing to operate rather than sell.
Q: What’s your outlook for the next 12 to 18 months?
Galles: For the next six to nine months, owners will still compete for tenants. But once the current supply is absorbed, we’ll see tighter vacancy and renewed demand.
Clutts: I’m very optimistic about the future of Northern Nevada. We have a real housing shortfall. Once rates drop and rents tick up, we’ll see activity resume. We can’t go years without new supply—it’s not sustainable.
Q: Any other issues not getting enough attention?
Lorenz: We’re seeing higher sewer, fire, and permit fees—while being asked to cap rents. You can’t raise costs and cap income.
Clutts: We need to better educate our elected officials on how to work with development to bring attainable housing to northern Nevada and revitalize the downtown corridors. The municipalities want attainable housing, but their high fee structures make it difficult to deliver. We will need to find a balance.
Q: Final thoughts?
McQuatt: If we don’t make development feasible, capital will go elsewhere—Boise is already on the radar. We need to be proactive.
Galles: I’m excited about downtown. Jacobs’ work and others are bringing new life to the core, and that benefits the whole region.
Clutts: Northern Nevada feels like Las Vegas 25 years ago—poised for big growth. We just need to ensure it is responsible growth.