Thinking of moving to the Biggest Little City in the World? Reno, known for its beautiful mountain scenery and year-round outdoor activities, is an increasingly popular destination for retirees, young professionals, and families alike. Whether you’re considering Reno 55+ communities or relocating for work, understanding the Reno cost of living is essential for planning your move.
So what is the cost of living in Reno Nevada? The cost of living in Reno NV, like any city, is influenced by various factors, including housing, transportation expenses, gas prices, and daily essentials like food. While Reno offers a unique lifestyle with easy access to Lake Tahoe and the Sierra Nevada, it’s important to compare local expenses to the national average to determine how it fits in your budget.
In this guide, we’ll explore the major cost categories, from housing prices to gas prices, to help you decide if living in Reno is right for you. Here’s everything you need to know about the Reno cost of living!
Reno Cost of Living Index
One of the best ways to assess the Reno cost of living is to explore the Cost of Living Index, otherwise known as COLI. The Cost of Living Index compares the cost of goods and services in a city to the national average.
The Reno Cost of Living Index is 104.4, making the city 4.4% more expensive than the national average. Although the Reno cost of living is higher than the national average, it’s lower than the Nevada COLI of 109.7.
Is Nevada expensive to live in? Nevada has a Cost of Living Index of 109.7, making it 9% more expensive than the national average. However, Nevada has a lower cost of living than several surrounding states. It is lower than Colorado, which has a COLI of 120.5. When comparing the cost of living in Nevada vs. California, California comes out 32.5% more expensive than Nevada.
Consumer Price Index (CPI)
Another way to calculate the Reno cost of living is to take a look at the Consumer Price Index (CPI). The Consumer Price Index is published by the Bureau of Labor Statistics each month and factors in the average change in prices that residents are paying for goods and services.
Over the last 12 months, the CPI has risen 2.4%. Food prices rose by 3.0%, while energy prices declined 6.5%. Over the past 2 months, the CPI declined 0.1%.
Consumer Expenditure Survey
Another good way to measure the Reno cost of living is to take a look at the Consumer Expenditure Survey. This survey is also conducted by the Census Bureau and is used to help calculate the overall CPI. According to the latest report, the average annual expenditure for a household in Reno is $89,510 per year. This is higher than the national average of $77,280.
Here’s how this budget breaks down and how it compares to the national average:
- Housing: $30,561 (compared to national average of $25,436)
- Transportation: $14,881 (compared to national average of $13,174)
- Food: $11,374 (compared to national average of $9,985)
- Healthcare: $6,436 (compared to national average of $6,159)
- All other items: $26,258 (compared to national average of $22,526)
Family Budget in Reno
What is the cost of living in Reno NV for you and your family? According to the Economic Policy Institute, a family of four in Reno would need to earn $112,367 to live comfortably in the city. However, it’s important to note that your Reno cost of living will vary depending on your lifestyle and family size.
For example, a family of two with no children would only need to earn $64,753 per year. Additionally, if you utilize public transportation, then you can cut back or eliminate transportation expenses like gas prices and car insurance.
Cost of Household Items, Utilities, Gas & Groceries in Reno
Is Reno expensive? A good way to answer this question is to take a look at small everyday expenses that will greatly impact your overall Reno cost of living. These include things like food, groceries, and gas prices in Reno NV. Here are a few things that will contribute to how expensive living in the city is for you.
- Steak (1 pound): $10.22
- Milk (1 gallon): $4.49
- Eggs (1 dozen): $4.33
- Potatoes (5 pounds): $8.55
- Bread (1 loaf): $4.00
- Beer (1 bottle): $6.00
- Movie ticket: $14.50
- McDonald’s meal: $12.00
- Average cell phone bill: $62.20
Source: Numbeo
Additionally, you can expect an average electric bill in Reno NV of $199.85. You can expect the Reno cost of living to be slightly higher than the monthly cost of living in Nevada, as the Cost of Living Index is higher.
Reno Real Estate Market
Are you thinking about exploring the Reno housing market and looking for Reno homes for sale? Housing costs play a significant part in the overall Reno cost of living. According to Redfin, the median home price in Reno Nevada is $535,000. The average home price in Reno NV is higher than the national average of $430,000 as well as the Nevada average of $463,000. Home prices are up 5.9% compared to last year, and the median price per square foot is $329,000.
How does the Reno average home price compare to other Nevada cities? Here are a few comparisons:
- Las Vegas: $444,000
- Henderson: $490,000
- Sparks: $499,000
- Carson City: $505,000
The Reno cost of living also depends on where in the city you’ll be settling down. There are plenty of amazing neighborhoods in Reno to choose from, some more affordable than others. A few of the more affordable Reno neighborhoods include South Meadows, Northwest Reno, and MidTown District. A few of the more expensive neighborhoods include ArrowCreek and Zolezzi.
Reno Rental Market - Average Rent in Reno
If you’d rather pay monthly rent on housing, then you’ll need to understand how this will impact the cost of living in Reno NV. According to RentCafe, the average Reno rent is $1,677 per month, which is below the national average of $1,748.
The most affordable neighborhoods in Reno are East Reno Heights (average rent of $1,428), Brookside Lakes (average rent of $1,432), and Academy Manor (average rent of $1,432). Neighborhoods that will drive up your Reno cost of living include Double Diamond, Golden Hills, and Virginia Foothills, which all have an average rent of $2,092.
According to the National Low Income Coalition’s Out of Reach Report, you would need to earn $30.42 per hour ($63,280 per year) to afford a two-bedroom apartment in the city without spending more than 30% of your income on housing.
Is it more affordable to buy or rent in Reno NV? According to the 2022 Rental Affordability Report, it is more affordable to rent than to buy in Reno. Another good way to compare the two options is to take a look at the price-to-rent ratio in the city. The higher the ratio, the better the area is for renters. The lower the ratio, the better the area is for buyers. To calculate the price-to-rent ratio, you’ll want to take the median annual rent and divide it by the median home price. Here’s how Reno’s numbers plug into this equation.
$535,000 / $20,124 = 26.5
This is considered to be a higher price-to-rent ratio, and, therefore, Reno is better for renters.
Average Salary & Household Income in Reno
Is Reno affordable? You can consider the average salary and household income in order to answer this question. Both of these factors play a huge part in the Reno cost of living. The median household income in Reno is $80,365, which is higher than the Nevada average of $76,364.
According to Payscale, the average salary in Reno NV is $74,000 per year. What is the minimum wage in Reno Nevada? In a recent effort to match the Reno cost of living, the Reno minimum wage was raised to $12.
The Reno cost of living is very doable if you get a job in the area. Reno has a thriving economy, particularly in industries like tourism, healthcare, and entertainment. The top employers in Reno are:
- Washoe County School District: 7,500 employees
- Renown Regional Medical Center: 7,500 employees
- Washoe County: 3,000 employees
- Peppermill Reno: 3,000 employees
- Nugget Casino Resort: 3,000 employees
- Harrah’s Reno Casino: 3,000 employees
- Grand Sierra Resort: 3,000 employees
- Saint Mary’s Regional Medical Center: 3,000 employees
- Eldorado Resort Casino: 3,000 employees
- Silver Legacy Resort Casino: 3,000 employees
The salary you’ll make in the city also depends on the industry you’re in. Here are a few common occupations and their average salaries, according to the BLS.
- Health Technologists: $53,480
- Human Resources Specialists: $73,160
- Technical Writers: $90,730
- Mechanical Engineers: $95,770
- Registered Nurses: $97,160
- Physical Therapists: $109,620
- Psychologists: $133,000
- Personal Financial Advisors: $156,550
Income, Sales & Property Taxes in Reno
Taxes make up a big part of the Reno cost of living. Here’s an overview of taxes that will influence the cost of living in Reno NV.
Nevada Income Tax Rate
Nevada is one of the few states with no income tax! When living in the area, you won’t need to pay state tax on income earned from salaries, wages, or similar compensation.
Sales Tax in Reno Nevada
The Reno sales tax rate is 8.265%. Nevada has a base sales tax rate of 6.85%, while the city-specific tax rate is 0%, and the Washoe County tax rate is 1.415%. This combines to equal 8.265%.
Reno Property Tax Rate
Property taxes are important to factor in when considering the Reno cost of living. In Reno, property taxes are based on the assessed value of the property, which is determined by the Washoe County Assessor’s Office. The assessed value is a percentage (currently 35%) of the property’s taxable value, which is typically derived from market value.
Property tax rates are expressed as a percentage per $100 of assessed value and vary depending on the location and services provided.
Reno vs. Las Vegas Cost of Living
If you’re considering a move to Nevada, then Las Vegas might be the other city you’re considering. But how does the Las Vegas cost of living compare to the Reno cost of living? When it comes down to the details, living in Las Vegas is slightly more affordable than Reno.
The Las Vegas Cost of Living Index is 97.6 (compared to the Reno Cost of Living of 104.4). However, one advantage that Reno has is that the average salary is a bit higher. The average salary in Reno is $74,000, while the average salary in Las Vegas is $72,000.
Housing in Reno is also more expensive than housing in Las Vegas. The median home price in Vegas is $444,000, which is higher than the Reno average of 535,000. Rent is also higher in Reno, with an average rent price of $1,677 compared to $1,478 in Las Vegas.
Overall, the Reno cost of living is slightly higher than the Las Vegas cost of living, but not by too much. Either city is a wonderful place to settle down and plant roots with your family!
Get in Touch With Move 4 Less Today!
Now that you know all about the Reno cost of living, are you ready to move to the area? The cost of living in Reno NV, although slightly above the national average, is generally very manageable. Our Reno movers are always happy to help you navigate the Reno cost of living and can recommend affordable neighborhoods and 55+ communities. Give Move 4 Less a call today at (702) 381-1200 to get started with a free quote.
