Housing affordability still a concern
The Reno housing market shows affordability has stretched its limits as new single-family homes move to higher price points, according to a third quarter study by Metrostudy.
Other highlights of the study include:
-Construction starts of new single-family homes remain flat as constraints in construction workforce remain a concern.
-The average price of a new home is $427,000, up 8.1 percent year-over-year from 2016.
-Home prices are rapidly increasing. Last year 28 percent of all single-family home starts were under $300,000, while this year, only 18 percent are under $300,000.
-With high prices some are looking to her areas for new homes such as Fernley.
“Start activity has shifted over last year into the price ranges above $400,000 as builders adjust pricing to offset increased land and construction costs,” said Greg Gross, Regional Director of Metrostudy’s Reno Market. “This quarter we are seeing starts continue to rise in the ranges above $400,000. While it is increasingly difficult to offer new homes priced under $300,000, builders are seeking affordable land farther out into the suburbs.”
According to the Site Selectors Guild, the pandemic is shifting corporations’ radar away from big cities like New York City, Los Angeles and Chicago and toward mid-size cities like Reno.