Reno’s luxury home prices are rising more than three times the rate of the remainder of the market’s prices
The luxury segment of the Wall Street Journal in collaboration with Realtor.com® has released its inaugural Emerging Housing Markets Index.
As reported by Mansion Global, “Reno, Nevada, placed third in the luxury cut of the Emerging Housing Markets Index.” See Five Booming Luxury Markets That Should Be on Your Radar [April 30, 2021].
From the Mansion Global piece:
The secondary city—in the zero-income-tax state—has seen the arrival of tech giants Tesla, Google and Apple in the last couple of years, which has been drawing transplants from the San Francisco Bay Area since before the pandemic.
The index ranked Reno’s typical one-way commute as one of the lowest of the top 20 markets at a median of 23.2 minutes.
What factors did the Emerging Housing Markets Index look at?
The Realtor.com® economics team and the Wall Street Journal’s data team identified…the areas with strong housing demand and rising prices combined with robust economies, lots of good-paying jobs, and the amenities that make a place desirable. These markets have lots of restaurants, bars, and shops as well as reasonable commutes to work. The quarterly index looked at a pool of the country’s 300 largest metropolitan areas, which include the main city and surrounding suburbs, towns, and smaller urban areas.
See Realtor.com®’s These Are Emerging as the New Top Real Estate Markets of 2021 [April 27, 2021].
Longtime readers of this blog should find Reno’s luxury home market ranking not surprising. Reno’s luxury home market has been outperforming the other market segments for a few years now. See:
- Reno-Sparks Luxury Home Sales Outperform in 2020 [January 23, 2021]
- Which homes are appreciating fastest in Reno, Nevada? [April 4, 2021]
Indeed, taking a look at the year-over-year 1st-quarter median sales price of Reno’s luxury home segment compared to the rest of the market reveals:
- 2021 Q1 Y-o-Y median sales price – luxury home segment: Up 48.3%
- 2021 Q1 Y-o-Y median sales price – remainder of market: Up 14.1%
As can be seen above, Reno’s luxury home prices are rising at three times the rate of increase of home prices in the remainder of the market.
Note: “Luxury” is defined as the top 5% (95th percentile) of homes sales.
The Reno, NV residential sales data shown above is for NNRMLS Area #101, and includes SFR (single family residence) properties only. Data excludes Condo/Townhouse and Manufactured/Modular properties. Data courtesy of the Northern Nevada Regional MLS (NNRMLS), May 5, 2021. Note: This information is deemed reliable, but not guaranteed.