Only four assets traded in Q3 2025, for a total sales volume of $4.58M versus $149.95M in Q2 2025.
The largest sale of the quarter was 775 Moran Street, a six-unit asset that sold for $1.23M ($205,000 per unit).
On the listing side, 23 properties are currently on the market (5+ units) with an average price per door of $199,899 with cap rates averaging 5.39%. Apartment vacancies remain low. The overall vacancy rate for communities 50+ units increased to 2.40% (+38 bps) while the average rent decreased from $1,753 in Q2 to $1,751 in Q3 (-0.10%). According to Johnson Perkins Griffin, 36.67% of the apartment projects offered rent concessions during the quarter, which increased from 32.50% in the 2Q 2025.
For new projects being built, only five new projects are being constructed totaling 817 units, while ten projects are in various planning stages totaling 4,015 units. According to JPG, seven completed projects are under the “lease-up” phase with an average occupancy of 60%.
On the debt and equity side, BWE reported that the “hawkish cut” at last week’s FOMC Meeting prompted investors to rethink their rate forecasts for near-term monetary policy. The market consensus had previously priced in a near-certainty of a subsequent December 25 bps rate cut, though those odds were dashed following comments from Fed Chairman Jerome Powell. During last week’s press conference, Fed Chair Powell noted, “A further reduction in the policy rate at the December meeting is not a foregone conclusion – far from it”. Powell cited that in the near-term, the Fed faces a challenging situation where the risks to inflation are tilted to the upside while risks to employment are tilted towards the downside. Importantly, policymakers had “strongly differing” views on the outlook for monetary policy in December, complicated by the lack of current official economic data due to the federal government shutdown.
While the outlook for the rest of 2025 remains optimistic, the current rate environment has had an impact on deal volume. Investors have been delaying purchases, waiting for the right pricing metrics before deploying capital. To that end, with “on market” cap rates averaging 5.39%, largely unchanged from Q2, the market could use some help with either cap rate expansion or rates to come down before we see more deal volume in the months to come.
3Q 2025 Reno Multifamily Market: Key Data Points
Explore our full Reno multifamily market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Vacancy Rate Holds Low: Overall vacancy for communities 50+ units rose slightly to 2.40%, up 38 bps from Q2 but down 13% year-over-year.
- Average Asking Rent Stable: Rents averaged $1,751 per month, a marginal 0.10% decrease from Q2 but up 4.98% year-over-year.
- Construction Pipeline Shrinks: Only 817 units under construction, a 71% decline compared to last year; new deliveries fell 79.7% year-over-year to 120 units.
- Sales Volume Plummets: Just $4.58M in sales for Q3 versus $149.95M in Q2, with average price per unit at $189,571, down 11% year-over-year.
- Net Absorption Improves: Net absorption reached 513 units, up 24.8% year-over-year, despite limited new supply.
- Cap Rates Edge Up: Market cap rates averaged 5.6%, slightly higher than Q2’s 5.2%.
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