Albuquerque Multifamily Report – September 2022
While rent growth moderated, the city continues to display healthy fundamentals.
Albuquerque’s momentous recovery that started in 2021’s third quarter continued well into 2022, with cautioned moderation here and there. Rent growth remained slightly above the national rate for the third-consecutive month in July, when it rose 1.1 percent on a trailing three-month basis, to $1,261. The strong performance is sustained by increasing demand paired with a tight inventory. The occupancy rate in stabilized properties stood at 96.6 percent as of June, down 20 basis points year-over-year but still healthy.
READ THE FULL YARDI MATRIX REPORT
Unemployment stood at 4.6 percent in June, trailing the 3.6 percent U.S. rate but leading the 4.9 percent state figure. The job market maintained the lead over the U.S. for the sixth-straight month in May, when it posted a 6.0 percent year-over-year increase, or 18,300 jobs, well above the 4.7 percent U.S. rate. Mirroring the national trend, the recovery of the leisure and hospitality sector led gains, adding 7,800 jobs. Although the overall recovery is spotty—two sectors lost jobs and one remained flat—promising signs come from the tech industry, as several companies are expanding their footprints in the metro.
Deliveries softened, with just 65 units coming online this year through July, but the construction pipeline is robust, with 3,378 units underway. Meanwhile, investment surpassed $502 million, nearing last year’s $549 million total, for a price per unit that increased by a hefty 55 percent year-over-year, to $191,344.