Albuquerque 1Q23 Multifamily Market Insights Report: After years of undersupply, construction is on the rise
Highlights:
Multifamily property performance in Albuquerque has been fueled by an extremely low vacancy rate, limited construction and rising rents. In the first quarter, rents inched lower — despite extremely tight vacancy conditions.
Vacancy was flat in the first quarter, following four consecutive quarterly declines. The rate has declined 100 basis points year over year to just 1.9%.
After two years of steep rent increases, apartment operators gave back some of the recent gains at the start of 2023. Asking rents ticked lower by 1% to $1,270 per month in the first quarter. In the past 12 months, rents spiked by 8.7%.
Transaction volume was limited during the first quarter. In the handful of properties that sold and where pricing was available, the median sales price was $182,900 per unit — up 37% from last year’s figure.
Insights
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