Q4 2022 Multifamily Real Estate Report: Albuquerque, NM
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Albuquerque’s multifamily real estate market saw stable activity in Q4 2022 amidst low vacancies and rising asking rents. Yet, the market struggled to deliver new units and transact more multifamily properties.
The population for Albuquerque in 2022 reached 942,000 at a 1.4% growth rate, and the unemployment rate for the city was 2.6% at the close of the year.
General Area Overview & Demographics
Albuquerque is the largest city in New Mexico with a population of 559,277 according to the 2019 Census. The racial demographics of Albuquerque are as follows: Hispanic or Latino makeup 48.7% of the population; White (non-Hispanic) 43.1%, African American 3.2%, Native American 6.8%, and Asian 1.2%.
Albuquerque, NM’s Median Household Income & Population
The median household income in Albuquerque is $50,614 according to the 2019 American Community Survey 5-year estimates. This is slightly lower than the national average of $60,293. The poverty rate in Albuquerque is 18%, which is higher than the national average of 11%, and New Mexico residents are some of the most concerned about rising costs due to inflation.
The median age in Albuquerque is 35 years old. The population is spread out with 24.3% under the age of 18, 12.2% from 18 to 24, 33.1% from 25 to 44, 22.5% from 45 to 64 and 8% who are 65 years of age or older. About 52 percent of the population is female and 48 percent is male.
Albuquerque is home to several higher education institutions, including the University of New Mexico, Central New Mexico Community College, and Southwestern Indian Polytechnic Institute.
Notable attractions in the city include the historic Old Town Albuquerque, the iconic Sandia Peak Tramway, and the popular ABQ BioPark featuring a zoo, aquarium, botanic garden, and more. The city is also home to cultural centers like Indian Pueblo Cultural Center and the National Hispanic Cultural Center.
Albuquerque has a semi-arid climate, which is characterized by hot summers and mild winters. The average temperature in July is 87 °F (30.5 °C) and the average temperature in January is 43 °F (6.1 °C). Albuquerque receives an average of 8 inches (20 cm) of rain per year. The city also experiences around 300 days of sunshine annually.
Summary of Albuquerque Multifamily Real Estate Performance in Q4 2022
Albuquerque’s multifamily vacancy rate was low for Q4 2022 at just 1.9%. The North Central submarket saw the lowest vacancy in the city for the quarter.
Class A multifamily properties in Albuquerque saw an average vacancy rate of 1.6% in 2022.
What are multifamily rents like in Albuquerque?
Average local asking rents for Albuquerque multifamily real estate reached $1,282 per month in Q4 2022, a 2.9% increase quarter-over-quarter.
Rents were highest in the Northeast submarket at $1,507 per month. The average monthly rent across Class B and C multifamily properties in Albuquerque rose to about $1,100.
Purchase & Leasing Activity
Sales volume for Albuquerque multifamily real estate was down by 36% quarter-over-quarter in Q4 2022. Overall, sales volume increased by 17% year-over-year in 2022: The median sales price in 2022 was $133,100 per unit.
Notable Multifamily Real Estate Deals in Albuquerque in Q4 2022
There were several notable deals that took place for Albuquerque multifamily real estate in Q4 2022:
- La Casa Loma Apartments was sold with 132 units.
- Valley Apartments was sold with 140 units.
- Peaks at Los Ranchos Apartments was sold with 105 units.
- Sun Plaza Apartments was sold with 152 units.
These are select examples among other activity.
New Multifamily Real Estate Development Activity in Albuquerque in Q4 2022
New multifamily deliveries in Albuquerque were low for the year at less than 100 units total in 2022. More than 2,000 new units were in the city’s construction pipeline at the close of the year.
The Mesa del Sol submarket saw the highest amount under construction in Q4 2022 with about 318 units.
Market Forecast for Albuquerque’s Multifamily Real Estate Market
Multifamily deliveries are expected to increase in 2023, potentially causing vacancies to rise; however, the multifamily vacancy rate in the city is still projected to remain low at around 3%.
Multifamily rents in Albuquerque are also expected to increase at around a 3% growth rate in 2023.
Takeaways for Multifamily Real Estate Investors
Sales volume and activity for Albuquerque’s multifamily real estate market is likely to slow down in 2023. Yet, as new deliveries come on the market, transaction activity will likely still remain active.
Do your research, stay diligent, and happy investing.
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