Albuquerque One of Nation's Most Stable Rental Markets, New Data Says

It’s likely that the Albuquerque apartment market is increasingly landing on investor radars. The reason? The Duke City has one of the nation’s most stable apartment rental markets.
The results of CBRE New Mexico’s September apartment market survey lays it out — continued strong occupancy rates and sound year-over-year rent growth.
Rents have increased from $735 to $751, with all unit types showing gains. Albuquerque’s weighted average rent and effective rent have gone up 11.26 percent and 12.03 percent, respectively, since CBRE’s first survey in 2008. Year-over-year market occupancy is stable — from 94.37 percent in September 2013 to 94.30 percent in September 2014.
“Albuquerque enjoys a reputation as one of America’s most stable rental markets, having avoided the severe occupancy and rent declines experienced by most other Sunbelt markets in 2009 and 2010,” said the father-son team of David and Billy Eagle, who operate CBRE New Mexico’s multihousing group. New Mexico is in the Sunbelt market, which spans southern regions from California to Florida.
“Albuquerque occupancy trends have been consistent since CBRE began tracking it seven years ago,” the report said.
The latest survey includes 141 market-rate (225-unit average) and 44 affordable properties (170-unit average). Market-rate properties were 81 percent of the surveyed units and affordable properties made up 19 percent.
The Eagles say they expect about 690 units to come online for the remainder of the year and in 2015 — about 80 percent being market-rate, mainly on Albuquerque’s Westside, with some in the Northeast Heights.
“There will be minimal opportunities for significant market-rate development beyond 2015 due to a scarcity of zoned or suitable land,” the report said.
The report said affordable units will come online as well, but will typically be smaller properties near Downtown, the southeast, southwest or northwest corridors of the city.
By: Damon Scott (Albuquerque Business First)
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