Albuquerque Multifamily Report – April 2023

After a busy year, the market is recording some sluggishness.

Albuquerque rent evolution, click to enlarge

Albuquerque rent evolution, click to enlarge

New Mexico’s strategic location, lower cost of living compared to neighboring states and economical business opportunities have boosted interest in Albuquerque. This has benefited the rental sector, and fundamentals have improved consistently this decade. However, some moderation has started, with rent movement recently turning negative, down 0.1 percent on a trailing three-month basis as of February, to $1,283. Occupancy in stabilized properties declined 100 basis points year-over-year as of January, but remained healthy at 95.3 percent.

Albuquerque sales volume and number of properties sold, click to enlarge

Albuquerque sales volume and number of properties sold, click to enlarge

Albuquerque’s unemployment stood at a record low 3.5 percent in January, on par with the state and 10 basis points below the U.S. average, according to preliminary data from the Bureau of Labor Statistics. The job market expanded 1.7 percent year-over-year as of December, trailing the 3.7 percent national rate. Three sectors contracted for a combined 3,400 jobs lost, while education and health services and leisure and hospitality led gains with 1,600 positions each. Intel, Netflix and Manna Capital Partners and Ball Corp.’s partnership are among the entities with planned expansions, which will prop up the metro’s economy.

Albuquerque. Photo by benedek/iStockphoto.com

Albuquerque. Photo by benedek/iStockphoto.com

Sales and deliveries paused, with no sales or completions registered through February. Still, the construction pipeline had 3,241 units underway, and last year marked an all-time high in transaction volume, with $934 million in multifamily sales.

Read the full Yardi Matrix report.

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