Reno City Council Approves Housing Density Changes, Clearing Path for Infill Development in Midtown and South Reno

Reno's city council voted 5-2 on July 9 to eliminate single-family zoning requirements across Midtown, South Reno near the University District, and a two-block corridor along Virginia Street. The change allows developers to build duplexes, triplexes and four-unit buildings on lots previously restricted to one home per parcel. Council members voting in favor said the change addresses a shortage of rental units; those opposed cited concerns about neighborhood character and displacement risk for long-term residents.

The move comes as Reno's population grew 6.2 percent between 2020 and 2025, outpacing the state average of 5.1 percent, according to U.S. Census Bureau data released in March. The Regional Planning Division has documented a shortfall of approximately 4,200 rental units in the greater Reno metro area as of 2024. Median rent in Reno increased 24 percent over the same five-year period, climbing from $1,240 to $1,540 for a one-bedroom apartment, according to commercial real estate tracker CoStar. The council resolution stated the density changes are intended to increase housing supply and reduce upward pressure on rents.

What Happens on the Ground in Three Neighborhoods

The policy takes effect immediately in the three zones. Developers can now submit applications to build multi-family properties without requesting variances or exceptions hearings. In Midtown-roughly bounded by 2nd and 6th Streets and Arlington to Virginia-property owners will be able to subdivide and develop without special city approval. The University District corridor, east of Sierra Street near the University of Nevada, Reno campus, will see the same flexibility. A third zone along Virginia Street from 6th to 9th Street allows up to four units per lot. Reno's Development Services Department says it has processed 18 pre-application inquiries in these zones since the council signaled the change in June committee votes.

City staff projected during the council hearing that the three zones could accommodate 600 to 900 new housing units over the next decade if developed to maximum capacity. The council did not impose new parking minimums or height restrictions beyond existing code. However, existing residents and property owners in these neighborhoods face a secondary consequence. County assessors will likely reassess properties based on their new development potential rather than current use, potentially raising property tax assessments. A resident in Midtown who currently owns a 0.25-acre single-family lot worth $480,000 could see the assessed value increase once the property is classified as developable multi-family land. The Washoe County Assessor's office said it will begin re-evaluations in the third quarter of 2026.

Winners and Losers in the Near Term

Renters searching for housing in Reno are expected to gain access to more options as developments move through construction over 18 to 36 months. The building trades union, which testified in favor, noted that the projects would generate roughly 1,200 direct and indirect construction jobs. However, long-term residents who do not own their homes-estimated at 38 percent of Reno's population according to 2020 Census data-could face rent increases if property owners pass on higher tax assessments to tenants. The council's finance committee did not estimate the magnitude of potential tax increases.

The council rejected a staff proposal to require 15 percent of new units in these zones to be deed-restricted for low-income households earning below 60 percent of area median income. Four council members voted for the inclusionary zoning requirement; three opposed it, arguing it would discourage development. The measure now moves to the planning commission for technical review of design standards before the first projects are expected to break ground in early 2027.