Albuquerque Multifamily Report – September 2024
Several significant manufacturing projects will help sustain local housing demand.
Albuquerque’s performance was slow and steady in 2024 through July, with sustained rent growth, solid occupancy and a robust pipeline, but low investment activity. Average advertised asking rents rose 0.5 percent on a trailing three-month basis through July, to $1,349, while occupancy slid 50 basis points year-over-year to 94.9 percent in June, just above the 94.6 percent U.S. rate.
Employment growth saw a 1.9 percent increase, or 8,400 jobs, in the 12 months ending in May, 60 basis points higher than the national average. Unemployment rose to 4.5 percent in June, trailing the U.S. (4.1 percent) and the state (3.9 percent), according to preliminary data from the Bureau of Labor Statistics. Professional and business services and government led job gains, up by 2,300 positions each. Meanwhile, information lost 1,100 jobs. There are several projects under development in the metro, which will further strengthen local economic growth and sustain multifamily demand. Two significant projects announced by Maxon Solar Technologies and Ebon Solar could position the state as a key player in the growing solar cell manufacturing industry.
Developers delivered 683 units in 2024 through July and had another 4,984 units under construction. Year-to-date, new construction volume fell just slightly below the level recorded during the same period last year. Meanwhile, investment activity totaled $82 million, with all sales recorded in the first quarter.