The median home value in Reno is $576,913. According to Zillow, this is a 0.3 percent increase from a year ago, meaning it has essentially remained flat. A couple nearing retirement asked me about this number as they were contemplating selling their current home to move into a rental. Both wanted to reduce their management burden after retirement, but they also felt hesitant to sell their home outright.

The rental figures tell a different story. According to Zumper, the overall median rent in Reno is $1,795, which is a 2.6 percent increase from a year ago. This indicates that while home prices have nearly stalled, rental costs continue to rise. The implication of this number is clear: the burden of renting is becoming relatively heavier over time.

The concept that connects these two is the price-to-rent ratio. This is calculated by dividing the home price by the annual rent, serving as an indicator of whether buying or renting is relatively more advantageous. In Reno, dividing the $576,913 home price by the annual rent of $21,540 yields a ratio of about 27. This is considered high nationally. Typically, a value over 20 suggests that renting is relatively less burdensome, but Reno's figure is distinctly higher.

Calculating monthly expenses yields the same direction. Assuming they do not keep their current home, if they were to buy a new home in this price range with a 20 percent down payment of about $115,000 and finance the rest with a 30-year fixed mortgage, the principal and interest would be around $2,920 per month. Adding property taxes and insurance could push this up to the $3,200 range. Compared to the current rent of $1,795, this results in a difference of over $1,400 each month. For retirees who have fully paid off their mortgage, they need to factor in that this new rental cost would be an additional expense after selling their home.

Deciding to sell a home before retirement shouldn't be based solely on this one number. It's essential to check whether there is an outstanding mortgage on the current home and, if so, how much. If there is little to no mortgage left, selling the home to invest that money and move into a rental could be an option. However, they should calculate that the monthly expenses after moving into a rental could potentially exceed the current combined property tax and insurance costs.

Nevada is often mentioned as a retirement destination due to its lack of state income tax. However, property tax rates and homeowners insurance can vary by county, so it's advisable to verify these based on actual listings. For retirees moving from states with income tax, like California, this aspect can be significant, but it cannot be assumed that property taxes and insurance will be low, so it's best to calculate based on actual bills. If they plan to stay in this home long-term, maintaining their current home may be more stable, while if they plan to move closer to family, selling and renting could be a flexible option worth considering.

It's also important to note the school district information in areas of interest to Korean families. While referencing GreatSchools ratings, keep in mind that school district boundaries change frequently, so it's best to verify the assigned school for the specific address before making a purchase.

When approaching retirement, it's worth considering whether decisions can be postponed for several years. If immediate funds are not needed, there is little reason to rush to sell during a time when home prices are nearly stagnant. Conversely, if health or family issues make moving certain, it is wise to prioritize living stability and accessibility over market conditions at the time of sale. From observing this market for decades, I've found that retirement housing decisions are influenced as much by how one wants to spend the next few years as by the numbers.

This article is not investment or legal advice, and I recommend consulting with real estate and tax professionals before making any actual decisions.