On Sinclair and Stewart streets in Midtown, Reno developer Blake Smith opened nine newly constructed townhouses that are priced between $500,000 and $600,000.

"This is the new Reno, in my opinion," Smith, owner of S3 Development, said of the townhouses built on what was the large lots of two Victorian-era houses.

Those Victorians originally took up the half-acre lot with their large yards and a parking lot. Now they sit among the townhouses and are also for sale by Smith.

The townhouses represent some of the most expensive new houses for sale in Reno at their type and size, according to an analysis of active listings and sold houses in the last six months available through Redfin.com and the real-estate multiple listings service. Houses in this price range tend to be larger single-family houses.

But denser housing may be the future housing type that can help alleviate Reno's growing population, according to studies by the Truckee Meadows Regional Planning Agency.

The nine Midtown Lofts range from 1,500 to 1,995 square feet with two- and three-story models and architecture that blends with the surrounding vintage houses. They have two master bedrooms, lofted sitting rooms, roof patios, yards and one-car garages.

In July, the median house price for Reno was about $387,000, putting Midtown Lofts' larger units about $200,000 over that base price.

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The high price tag comes in part from the cost of Midtown land and labor shortages throughout the region, Smith said.

Mike Kazmierski, CEO of the Economic Development of Authority of Western Nevada, previously told the RGJ that labor shortages and construction material costs will continue to drive housing costs up in the region as its population grows. The demand for construction tradesmen increases the cost of building while also slowing down the time it takes to build new houses, they both said.

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Unforeseen costs, such as replacing 1920s-era clay pipes with modern pipes, dropping power lines and adding expensive finishes to the units also contribute to the final number, Smith said. He also said engineering three stories with cut-out patios and cut-out kitchen ceilings costs more to build than a townhouse without those features.



Those hoping to find more entry-level housing in the millennial-friendly Midtown district are likely to be disappointed, Smith said.

Affordable housing in Midtown is not feasible because of the cost of land and older infrastructure replacement, Smith said.

The Midtown Lofts were inspired by the denser housing in San Francisco and Portland. But, single-family houses in Reno still represent more than 45 percent of the housing stock, according to the TMRPA.

"That's old Reno," Smith said.

The TMRPA also identified townhouses and denser housing inside the city's core as a better alternative for Reno's growing population than single-family houses. The Truckee Meadows Housing Study noted that increasing dense housing by 22 percent would save $780 million in infrastructure costs to city and county agencies.

S3 Development Company also started construction on Tonopah Lofts, eight townhouses in the center of Midtown on Pueblo Street.

The three-story townhouses also include rooftop covered outdoor living areas with views of the mountains.

Both of these projects are among the few new construction projects started in Midtown in the last two and a half years. Another housing project is currently under construction on Martin Street.

Tonopah Lofts uses the same template as Midtown Lofts with about 1,900 square feet and two master bedrooms, small fenced yards and one-car garages. Prices have not been released for Tonopah Lofts.