Albuquerque Q2 Multifamily Market Insights: Vacancy Reaches All-Time Low at Midyear
Highlights:
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- Albuquerque’s ongoing supply and demand imbalance has multifamily developers moving more projects into the pipeline to keep pace with renter demand. Vacancies are down, and rents are continuing to push higher at a rapid clip. Year to date, deliveries have been minimal, but completions are on pace to gain momentum in the second half.
- Vacancy rates fell 30 basis points to 2.6 percent in the second quarter, pushing the rate down to an all-time low. Year over year, local vacancies have dropped 100 basis points.
- Rent increases have been substantial since the beginning of 2021. Asking rents rose 3.9 percent to $1,213 per month during the second quarter. During the past 12 months, asking rents spiked 24.4 percent.
- Total transactions up to this point in 2022 are closely tracking prior year levels, despite fewer properties trading during the second quarter. In sales where pricing is available, the median price reached $137,500 per unit, while cap rates averaged around 4 percent.
