Albuquerque Multifamily Report – Winter 2019

Large investments in the area have brought the metro’s job growth in line with the U.S. average for the first time this cycle, boosting rental demand along the way.
Albuquerque rent evolution, click to enlarge
Albuquerque rent evolution, click to enlarge

Supported by recovering employment velocity, Albuquerque’s multifamily market had a relatively strong second half of 2018. The metro’s afford­ability—coupled with recent large investments in the area—has brought job growth in line with the U.S. average for the first time this cycle, boosting rental demand along the way.

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Professional and business services led employment growth (4,900 jobs), followed by leisure and hospitality (2,700), government (1,500) and con­struction (1,000). Intel, one of the state’s largest technology employers, an­nounced it is hiring again. The company decided to move the development of a new facility to its Rio Rancho plant. Giants Netflix and Facebook are also bringing growth and pushing the metro’s economy to a healthier state. The Horne Cos. began work on Sunport South Business Park, a future hub for e-commerce, warehousing, distribution and manufacturing.

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

Fueled by low levels of new stock and rising demand coming from tradi­tionally high-income employment sectors, both home prices and rents are improving across the metro. As of December, 550 units were under con­struction, with roughly 270 expected to come online this year. Considering the sluggish pace of completions and improving economy, we expect Albuquerque rents to advance 2.8 percent in 2019.

Read the full Yardi Matrix report.