With tons of outdoor adventure activities just a short drive away, beautiful scenery all around and manageable traffic, Reno, NV is a great place to live. The overall cost of living is slightly above average — but does it fit into your budget?
Reno is a smaller city with 246,500 residents. Many who live here like that it’s a small city with big-city amenities. They don’t have to worry as much about crime and traffic, but they still get to enjoy amazing restaurants, exciting events and some of the best shopping in the country.
Plus, for those who love a desert climate, Reno is ideal. It’s warm most of the year and, though there isn’t a drastic change from season to season, the spring wildflowers are a sight to behold.
The cost of living in Reno is above the national average by 8.3 percent, a 4.5 percent drop since last year. That’s awesome news for residents, especially when considering the average rent in Reno. But rent isn’t the only thing you have to consider when deciding whether a city is right for you or not. We dig deep into what makes up the cost of living in a city so you can see whether Reno is the best choice when it’s time for a move.
Housing costs in Reno
The housing market in Reno is not for the faint of heart. Just in the last year, the average rent in Reno increased by 63 percent to $2,353 per month. Overall, the cost of housing in this city is higher than the national average by 28.8 percent.
While there are a few neighborhoods that are even pricier (like South Meadows, where the average rent is $3,101), there are some more affordable options. If you’re looking for something under $2,000 per month, the following neighborhoods might fit your needs nicely.
You can even find rentals in Downtown Reno that can fit your budget (average = $1,811) and keep the cost of living in Reno lower than average.
Average rent prices in cities near Reno
Another way to find affordable rent in Nevada is to look at rental properties in the suburbs of Reno or other nearby cities. Here are a few cities with rent prices that can keep your cost-of-living expenses low.
Home prices in Reno
If you truly want to live the American Dream, then at some point you’ll want to consider owning your own home. Is Reno the right city for you to do that? Perhaps. The average cost of a home on the market right now is $500,000.
Housing prices are up in this city by nearly 18 percent from last year. The housing market is somewhat competitive with some homes receiving multiple offers. The average home sells for between 2 and 5 percent above the asking price. Homes typically sell between 5 and 20 days after they’re listed.
How do mortgage payments compare to the average rent in Reno? As a reminder, the average rent is $2,353. If you put $50,000 down on a $500,000 home, you’ll pay $2,850 per month (4.25 percent interest rate on a 30-year fixed mortgage). If you put $100,000 down (the often-recommended 20 percent down payment), you’ll pay $2,343 each month.
Food costs in Reno
Another factor that can significantly drive up the cost of living in Reno is food. Whether you like to eat out a lot or prefer to stay home and cook, you’ll still end up paying about 7.6 more than the national average. Fortunately, food prices fell 6.3 percent over the past year.
Here’s a breakdown of some of the prices you can expect at the grocery store and how they compare to the U.S. average.
- Fried chicken: $1.23 in Reno; $1.32 – national average
- Tuna: $1.00 in Reno; $0.99 – national average
- A dozen eggs: $1.80 in Reno; $1.47 – national average
- Half-gallon of milk: $3.04 in Reno; $2.10 – national average
- Sausage: $4.24 in Reno; $4.09 – national average
- Ground beef: $5.56 in Reno; $4.10 – national average
The average cost of a meal out (for one person) is approximately $17, though some restaurants (like Fourk Kitchen can cost $19 per person, not including beer or wine). And if you’re like most people, you’ll probably eat out somewhat regularly — both for fun and for convenience. You’re in luck because Reno has some amazing restaurants. You’ll find cuisine of all sorts including Mexican, Thai, German, Eastern European, Italian, French, Northern Californian, Korean, Chinese and Farm-to-Table.
Of course, it’s important to remember that if you’re living on a budget (and really, who isn’t?), you might have to limit how often you eat out if you’re paying the average rent in Reno. The combination of higher grocery prices and the convenience prices of someone else cooking for you can quickly cause the cost of living in Reno to spike.
Utility costs in Reno
One area in which the cost of living in Reno is below the national average is utility costs. On average, utility bills are 17.2 percent cheaper.
The average monthly energy bill in Reno is $160.97, which is about 0.14 percent lower than the U.S. average. Other utility costs include:
- Internet: Average plan price is $63.30
- Cable: Prices are dependent on the provider and plan you choose but costs range from $39 to 65 per month
- Cell phone service: Prices depend on which provider and plan you choose but range between $39 and $90 per month
- Water: Again, rates vary on usage, but the average is $70.39 per month
Additional utility costs include garbage and recycling pick-up and home security.
Transportation costs in Reno
The transit and walkability scores in Reno (34 and 52, respectively) aren’t great. But the bike score (59), due to existing bike infrastructure, proves that the city is above-average for folks who like to get around on a bike. And that can help residents save some money on the cost of living in Reno.
However, a bike isn’t suitable for every errand, so you might need to decide between using RTC Ride, Reno’s public transit system and owning a vehicle.
RTC Ride’s single fair is $2, while a day pass is $3. You can purchase a 7-day or 31-day pass for $14.50 and $65, respectively.
If you decide to own a vehicle, you’ll have to factor fuel, maintenance, registration and insurance fees into the cost of living in Reno. Gasoline currently costs $3.31 per gallon (the national average is $2.76), which is pricey but still less expensive than Sacramento, California at $4.49 per gallon. A common maintenance fee is tire balancing and rotation, which experts recommend doing every 5,000-7,500 miles, or every 2 years. In Reno, the cost for this service is $60.67.
Overall, the cost of transportation in Reno is 17.6 percent higher than the national average. While that seems like a big jump above average, transportation costs in Reno have dropped by 12.8 percent in the past year.
Healthcare costs in Reno
It’s difficult to state with certainty how much healthcare costs will impact the cost of living in Reno. Healthcare is such a unique topic because each person has their own needs. Some people have chronic illnesses or low immune response, which makes them more susceptible to illness. Healthcare costs are naturally higher for those people.
On average, healthcare costs in Reno are 6.1 percent higher than the national average. Thankfully, this has dropped over last year, when the rate was 16.9 percent higher than the national average.
Here’s a breakdown of some common healthcare costs and how they compare to the median cost in the U.S.
- Doctor check-up: $125 in Reno; $112.81 – national average
- Dental check-up: $110 in Reno; $99.44 – national average
- Eye exam: $105 in Reno; $105 – national average
- OTC Ibuprofen: $11.46 in Reno; $9.80 – national average
On the whole, prescription medications are 3.87 percent lower than the U.S. average.
Goods and services costs in Reno
Once you’ve spent your hard-earned income on the basic necessities, now it’s time to consider the non-essentials: miscellaneous goods and services. These are things you spend money on that are fun and make life more enjoyable. In this category are items like:
- Clothing
- Salon visits
- Haircuts
- Pet grooming
- Going out to the movies
- Date night or girls/guys night out
- Personal sundries
Surprisingly, these costs are 2.9 percent cheaper than the national average. This is one area where Reno residents get a break!
Let’s say you have a fun day planned. You’re going to start the day with some shopping (you really need a new pair of pants). Then, you’ll head to your stylist to update your hairstyle. After that, you decide you really need to work out some tension (it’s been super stressful lately), so you go to a yoga class. When class is over, you head home, clean up and then, head out with your friends to go to the movies and get some pizza and beer. This is what your expenses for the day would look like:
- Women’s pants: $23.66 in Reno; $30.37 – national average
- Haircut: $23.33 in Reno; $20 – national average
- Yoga class: $17.50 in Reno; $15 – national average
- Movie: $10 in Reno; 11.12 – national average
- Pizza: $11.49 in Reno; $10.49 – national average
- Beer: $9.24 in Reno; $9.66 – national average
- Totals: $95.22 in Reno; $96.64
As you can see, these “extras” add up quickly and they can absolutely impact the cost of living in Reno. Do your best to find out how much you spend on these things so you can determine whether you can afford the average rent in Reno or need to look for an apartment in a more affordable neighborhood.
Taxes in Reno
If you’re looking for a tax-friendly state, Nevada is for you! There’s no state income tax. Instead, the government collects money through sales tax, property tax and “sin” taxes on things like alcohol and cigarettes. And since it’s a big gambling and hospitality state, the government collects tax money from the casino and hotel industries, as well.
Property tax rates are some of the lowest in the country, too. So, if you decide to purchase a home, you’ll save some money on this expense! At the current Washoe County tax rate (0.62 percent), you’ll pay $3,100 per year on a $500,000 home. Compare this to New Jersey, the state with the highest property tax rate in the country. Someone who purchases a $500,000 New Jersey home will pay 2.39 percent in property taxes, an average of $11,950 per year.
Sales tax in the state is 8.27 percent, which is a combination of the Nevada sales tax rate (4.6 percent) and the Washoe County sales tax rate (3.67 percent). If you made a purchase of $1,000, you’ll pay an additional $82.70 in sales tax.
How much do you need to earn to live in Reno?
How much you need to earn to live in this city depends on all the factors mentioned above, along with how close you want to live to the action.
The average Reno resident earns $58,790 annually, according to the U.S. Census Bureau. The average rent in Reno is $2,353, or $28,236 per year. If you were to pay the average rental fee, you spend nearly half your income on that alone. Is that something you can afford?
If not, remember that there are several more affordable neighborhoods and suburbs with apartments for rent that fit into the recommended 30 percent maximum goal. If you’re not sure if you can afford a Downtown Reno apartment, check out our free rent calculator to get a better idea of what rental fees fit into your budget the best.
Understanding the cost of living in Reno
Moving to a new city is a big decision. It can be a lot of fun to go somewhere new and start a new chapter in your life. But before you take a leap of faith, it’s best to do some digging. Investigate the cost of living in Reno to see if it will really fit your budget. Try to get as much info as possible about your new city so you can have confidence that you’re making a truly informed decision.
If, after all of your investigating, you decide that Reno is indeed your city of choice, make sure to check out our listings to find apartments for rent in Reno. Using our filter feature, you’re sure to find a rental that fits all your needs.
Source: rent.com