The announcement of Tesla Motors’ decision to build a gigafactory in Reno was met with both optimism and excitement for the future, from the locals.
With 6500 direct jobs expected to be created by Tesla, and even more indirect jobs to be created, it is no surprise that the real estate market may be seeing a surge in increased values.
Many are hoping construction starts soon as there is currently a historically low 8.5% vacancy rate. This is expected to change in the next 3-5 years due to supply and demand.
There is now concern for renters, as the building of apartment buildings has been steadily slow, although it is expected to pick up. The majority of apartment buildings are seeing a very low 3-4% vacancy rate, which means rents are expected to continue increasing.
What does this mean for the region and surroundings? We can expect to see a ripple effect of increased values as supply tries to quickly meet the overwhelming surge in demand.
The demand is already starting to drive prices up, not just for commercial space, but also for residential properties.
This announcement might start to be beneficial to area residents very soon, and it is suggested that those interested speak with their Coldwell Banker Select Real Estate agent to see how this will affect their own home ownership opportunities.
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