‘Hybrid’ housing coming to former Summit Sierra land
The high marks for Reno are a far cry from just a few years ago, when the recession and real estate market bust impacted the area more strongly than most other regions.
“Reno’s turning the corner right now,” said Darius Mirshahzadeh, Money Source CEO. “You’re seeing a turnaround in the real estate market and also seeing things like the Tesla Gigafactory being built there, some startup activity as well as what seems to be a really vibrant community.”
Reno’s hot real estate market, however, is also raising concerns in some circles about access and affordability. Housing affordability was cited as one key concern at the Economic Development Authority of Western Nevada’s annual Community and Investors Luncheon last Thursday, with home prices doubling in the past four years after bottoming out just below $150,000. Data from the University of Nevada, Reno’s Center for Regional Studies also show that median home prices are starting to approach levels that would be unaffordable for the area’s median family income, especially if wages do not keep up with housing appreciation.
Mirshahzadeh, however, says he does not foresee a repeat of the housing bubble collapse at this time.
“You had more exotic products (during the boom) that allowed people to buy more house than they can afford,” Mirshahzadeh said. “Today’s lending environment just won’t support that aggressive growth.”