Despite a slowly declining population, the city continues to see positive economic trends driven by job gains in education and health services, leisure and hospitality, and professional and business services.
The area's multifamily market is held back by a persistent struggle with a sluggish labor market. Despite being the hub of New Mexico’s technology corridor, the metro has experienced only modest population and employment growth throughout the recent economic expansion.
Although rents across the country have been decelerating in recent months, the California capital continues to outperform. While no longer in the double digits, its rent growth continues to lead major metros.
The metro's market is healthy, displaying solid fundamentals and producing strong growth. Robust investor interest and broad employment gains are driving demand across asset classes, with population growth leading to higher occupancy rates and rents.
The city has a diversified economy and employment is growing in most industries. That has fueled demand for apartments, which is expected to remain high as the metro continues to add jobs and households at a rate above the national average, and as more residents move south to avoid the growing cost of housing in Austin.
Demand for apartments continues to be strong, thanks to the locale’s relative affordability. The city’s high-quality education system and skilled workforce attract residents and employers, propelling economic growth.
Keeping young residents safe is a top priority at student housing communities, and today’s operators have an unprecedented menu to choose from: security guards, lighting, cameras, smartphone-based tools and online message boards, to name a few.
When I went off to college 40 years ago this September—now there’s a statement that would give anybody pause—my two roommates and I were assigned to a ground-floor dormitory suite that was Spartan, even by 1977 standards.