Think about the people who make downtown Reno work. The nurse finishing a night shift, the teacher grading papers, the line cook closing up after a busy Saturday. Many of them spend their days downtown but can't afford to live anywhere near it.
A project the Reno City Council just approved is aimed squarely at them, and it's a good window into how our city is trying to tackle the housing squeeze.
What got approved
On September 23, Reno City Council members, sitting as the city's Redevelopment Agency Board, approved up to $3.1 million in tax increment financing for a 107-unit workforce housing project at 521 Lake Street. The site sits right across from the Reno Events Center, a short walk from the heart of downtown.
The project comes from developer Coldwater Capital and is expected to cost about $23.9 million to build. Before voting yes, board members pushed the developer for a longer commitment to keeping the rents affordable, a sign the city wants these homes to stay within reach for years, not just at opening.
How the funding works, in plain English
"Tax increment financing" sounds complicated, but the idea is pretty simple. The city isn't writing a $3.1 million check up front. Instead, once the building is up, it will generate new property tax revenue that the empty lot never did. A portion of that new revenue goes back to the developer to help cover the cost of building, through Reno's Redevelopment Area 2.
In other words, the project helps pay for itself over time. The request did grow along the way, up from $1.6 million last December, but a city staff report estimates Reno will collect about $61,360 a year in property taxes from the site after 2035.
Why this matters for Reno right now
Workforce housing is generally built for people who earn too much to qualify for traditional affordable housing but still struggle with market-rate rent. In Reno, that's a lot of our neighbors.
The apartment pipeline has thinned out fast. By late 2025, only 817 apartment units were under construction in the region, down 71% from the year before, with vacancy at just 2.4% and average rent around $1,751, according to figures cited in a recent HousingWire analysis. Fewer new apartments plus very few vacancies means renters have very little room to shop around.
Lake Street isn't the only project in motion, either. The Lighthouse Sierra project is moving forward with supportive housing in south Reno, and the Reno Housing Authority broke ground on its largest affordable project yet, 199 apartments on the former Hawk View site, in 2025.
What it means for you
If you're renting, more homes downtown means more options and a little more breathing room down the line. And today's renters are often tomorrow's first-time buyers. A stable, affordable place to live is usually where saving for a down payment starts.
If you own a home nearby, new investment on an empty lot tends to bring more foot traffic, more activity, and more reasons for people to want to be downtown.
If you're simply someone who loves Reno, this is worth celebrating. The people who teach our kids, care for us at the hospital, and serve us dinner deserve a chance to live in the city they keep running.
We'll keep an eye on Lake Street as it moves toward construction and share updates here. And if you have questions about renting, buying, or what new development means for your neighborhood, The Kirsch Team is always happy to chat.
