It’s a good time to be a landlord in Albuquerque.
The city’s apartment rental market, called one of the most steady in the nation by CBRE, has seen occupancy and rental rates increase year over year.
CBRE’s Albuquerque office released new data that shows both regular apartment complexes, and those that offer affordable living, are posting rent increases.
Market-rate units saw average rent increase from $758 in January of 2015 to $778 in January of this year. Affordable living units, which usually have income limits, saw average rent increases from $701 to $712.
CBRE, which collected data on 140 market-rate apartment complexes and 45 affordable properties, saw two-bedroom, two-bath units post the largest rent gain.
While the rent increases may be a big jump for some residents, it’s nowhere near as fast as rents are climbing across the nation. The real estate research firm Reis Inc. reported average rents increased 4.6 percent nationwide in 2015.
Though Albuquerque’s rental market isn’t growing as fast, Billy Eagle, a senior associate with CBRE, said that’s a good thing.
“Cities that have seen double digit growth in the last couple of years are pricing themselves out in regards to their workforce,” Eagle said.
He said investors like Albuquerque’s stable market, because it means in an economic downturn, their properties are protected from big drops in occupancy.
The local apartment occupancy rate remains stable, at just more than 94 percent in January. The occupancy rate was 93.6 percent at the same time last year.
t’ll be interesting to see if Albuquerque’s rental prices drop or stay flat as more apartments come online. This year, Downtown’s Imperial Building, with 74 units, and Sawmill’s Madera Crossing, with 56 units, are expected to open.
Other proposed apartment projects include Titan Development’s Broadstone Northpoint, Western Albuquerque Land Holdings’ Westside complex, Uptown’s mixed-use center and a couple more affordable housing projects.
By: Stephanie Guzman (Albuquerque Business First)
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