Albuquerque Multifamily Report – Summer 2019
- Sep 13, 2019
Albuquerque’s multifamily supply woes are a rent growth boon. Limited housing supply in the face of steady demand resulted in a strong rent increase of 4.9 percent year-over-year through July, as occupancy rose to 95.5 percent.
Still lagging the nation in employment growth, the metro is finally poised to see significant job gains, thanks to recent advances in its movie industry. The leisure and hospitality sector led growth with the addition of 2,900 jobs, up 5.2 percent year-over-year through June. The metro is poised to become a presence in the movie industry, due to the acquisition of ABQ Studios by Netflix, which has a long-term investment plan, and to NBCUniversal’s plan to open a film and TV studio, a $500 million, 10-year project. In addition, Presbyterian Hospital’s multi-phase project is coming to fruition, with the opening of the first of three new care centers and a planned 11-story tower set to follow, at a cost of $260 million.
Following what, by the metro’s own lackluster standards, was a strong year for completions, only one property totaling 58 units was delivered during the first seven months of 2019. Transaction activity also slowed considerably, with just $55 million in rental assets trading. While some 570 units are now underway, rent growth is expected to continue in 2019.