Real estate can be a worthy investment opportunity. With research, a plan, and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Albuquerque housing market as a potential investment opportunity, you must read till the end. Albuquerque is the biggest city in New Mexico, home to around half a million people. Yet it is overshadowed by the state capital Santa Fe. It lacks the mystique of Roswell or Clovis.
Yet the Albuquerque housing market has several points in its favor which we shall discuss with you in detail. With Albuquerque’s rising rental costs and low housing prices, it’s undoubtedly a great market for investors looking to purchase an investment property. According to Albuquerque real estate investors, Ventana Ranch, Cabezon, Enchanted Hills, Hills Village, Tanoan, Alturaand, Northern Meadows are great subdivisions to buy investment properties. These locations in Albuquerque have all the factors that make for a good income property. Let’s take a look at the latest Albuquerque housing market trends.
Albuquerque Real Estate Market Trends 2022
Data by Redfin shows that the Albuquerque housing market is not that competitive. Only a few homes in Albuquerque receive multiple offers. The average homes sell for about 3% above the list price and go pending in around 12 days. However, a hot listing can sell for about 7% above the list price and go pending in around just 5 days.
- The average sale price of a home in Albuquerque was $327,000 last month, up 21.1% since last year.
- The average sale price per square foot in Albuquerque is $190, up 20.3% since last year.
- In the past month, 753 homes have been sold in Albuquerque.
- In addition to houses in Albuquerque, there were also 180 condos, 1 townhouse, and 48 multi-family units for sale in Albuquerque last month.
- Homes for sale in Albuquerque have a median listing price of $325,000.
- Some of these homes are Hot Homes, meaning they're likely to sell quickly.
On Realtor.com, the median listing home price in Albuquerque, NM was $324K in April 2022, trending up 15.7% year-over-year. The median listing home price per square foot was $185.
- Albuquerque real estate market trends show that it is a seller's real estate market, which means that more people are looking to buy than there are homes available.
- The trend for median days on market in Albuquerque, NM is flat since last month, and slightly down since last year.
- There are 207 neighborhoods in Albuquerque.
- High Desert has a median listing home price of $612K, making it the most expensive neighborhood in Albuquerque.
- Near North Valley is the most affordable neighborhood in Albuquerque, with a median listing home price of $190,000.
Albuquerque real estate market appreciation
Over the last two years, real estate appreciation rates in Albuquerque have been tracked to near the national average, with the annual appreciation rate averaging 4.60 percent, according to NeighborhoodScout's data. Looking only at the last twelve months, Albuquerque's appreciation rates remain among the highest in the country, at 21.85 percent, which is higher than appreciation rates in 79.50 percent of the country's cities and towns. Short-term real estate investors have found success in Albuquerque over the last twelve months. In the most recent quarter, Albuquerque appreciation rates were 8.44 percent, equating to an annual appreciation rate of 38.30 percent.
Albuquerque Single Family Homes & Condos Stats
Albuquerque's most frequent housing type is single-family detached homes, which account for 62.38 percent of the city's housing units (Neighborhoodscout). Other common types of housing in Albuquerque include big apartment complexes or high-rise apartments (19.83 percent), duplexes, converted homes converted to apartments, or other small apartment buildings (8.48 percent), and a few row houses and other attached residences ( 5.36 percent ). Three and four-bedroom houses, primarily in single-family detached homes, are the most popular construction size and type in Albuquerque. Owners and renters coexist in the city, with 59.11 percent owning and 40.89 percent renting.
According to Movoto.com, there are currently 2172 active home listings and 280 new homes for sale in Albuquerque in New Mexico. In May 2022, Albuquerque homes were selling for a median price of $331,790, Albuquerque homes on average sell after 32 days on the market compared to 24 days last year. There were 1801 homes sold in Albuquerque for May 2022 this year, up from 497 last year.
- The median list price of single-family homes in Albuquerque, NM was $349,900 in May 2022, compared to $369,900 in 2021.
- The median price per square foot of single-family homes in Albuquerque, NM was 188 in May 2022, compared to 172 in 2021
- The median list price of Condos/Townhomes in Albuquerque, NM was $238,000 in May 2022, compared to $263,000 in 2021.
- The median price per square foot of Condos/Townhomes in Albuquerque, NM was 179 in May 2022, compared to 176 in 2021.
Albuquerque Real Estate Market Forecast 2022-2023
The typical home value in Albuquerque is $310,473 on Zillow. Between 2019 to 2020, Albuquerque home values went up by 11.8% (ZHVI). Last year has been sizzling hot for sellers as over the past year alone the Albuquerque home values have gone up 19.5% and will continue to rise in 2022. The supply is very tight and with all the other factors considered, at this time, it is unlikely that the Albuquerque housing market will see a price decline in 2022.
Bernalillo County is located in central New Mexico and is home to Albuquerque, a significant economic and cultural crossroads in the American Southwest. The county has almost 1200 square miles.
- The typical home value of homes in Albuquerque Metro is $310,633.
- Albuquerque metro home values have gone up 20.4% over the past year and Zillow predicts they will rise 10.1% over the next twelve months (May 2023).
- The typical home value of homes in Albuquerque is $310,473, up 19% over the past year.
- Bernalillo County's home values have gone up 18.9% (current = $311,262) over the past year and will continue to rise in the next year.
Here is the Albuquerque real estate price appreciation graph by Zillow for the past decade.
Some of the best neighborhoods in Albuquerque, New Mexico are Paradise Hills Civic, Westgate Heights, and Taylor Ranch. Here are the 10 best neighborhoods in Albuquerque to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
- Highlands North
- Wells Park / Downtown
- The Lofts At 610 Central SW / Silver Platinum
- Nob Hill West
- Southeast Heights
- Barelas
- Peppertree – Royal Oak
- Nob Hill
- Parkland Hills
- Summit Park / Netherwood Park
Albuquerque Real Estate Investment Overview 2022
Is it worth buying a house in Albuquerque, NM? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Albuquerque is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Albuquerque housing market forecast for answers on why to put resources into this market.
Although, this article alone is not a comprehensive source to make a final investment decision for Albuquerque we have collected ten positive things for those who are keen to invest in Albuquerque real estate in 2022. Investing in Albuquerque real estate will fetch you good returns in the long term as the home prices in Albuquerque have been trending up year over year. Let’s take a look at the number of positive things going on in the Albuquerque real estate market which can help investors who are keen to buy an investment property in this city.
Albuquerque is a Big City
If you’re considering buying an Albuquerque real estate investment property, the sheer size of the metro area is a point in its favor. While roughly half a million people live in Albuquerque itself, the Albuquerque housing market is much larger than this. Take the suburbs into account, and the Albuquerque real estate market is home to almost a million people. This makes it the largest real estate market in the state of New Mexico. It also accounts for nearly half of the state’s total population.
One factor that will keep home values in the Albuquerque housing market slowly appreciating is the geographic constraints on expansion. Isleta Pueblo and several others border the city and are off-limits to general residential construction. Nor can the city expand to the east because of Cibola National Forest. This is why the Albuquerque real estate market saw 5 percent growth in 2018 and is expected to see nearly 3 percent appreciation in 2019.
Albuquerque Real Estate is Affordable
Albuquerque has a median home value of around 290,000 dollars. It is incredibly affordable compared to any market in California. It isn’t so hot that property values are skyrocketing. Demand isn’t so soft that property values are declining. Homes take 50 to 60 days to sell. This is a sign of a healthy real estate market that will remain stable unless the job market collapses. The most expensive homes in the area hit 1.5 million dollars, but that’s for a spacious luxury property.
In LA or San Francisco, that’s enough for a cramped condo. One of the most expensive neighborhoods in the Albuquerque real estate market, North Albuquerque Acres, has a median list price of 889,000 dollars. These properties are a good Albuquerque real estate investment for those who want to rent to the scientists working at Sandia National Laboratories. That’s the cost of a mid-sized single-family home in many major cities. The most affordable neighborhood, La Mesa, has starter homes at around 100,000 dollars.
It Is More Livable than Average
Albuquerque is more walkable than the average New Mexico city. It received a walk score of 43. It has a public transit score of 30. Where it shines is its bike friendliness. It has a bike score of 60, well above the national average of 50. This is aside from the many bike trails in the Sandia Hills. The abundant outdoor recreational opportunities and service providers make it a great place to live, though it isn’t so popular that it is overloaded with tourists.
The Diversified and Divided Job Market Keeps Things Stable
The Albuquerque real estate market is heavily dependent on state and federal-level jobs. For example, Sandia Laboratories create a large number of high-paying government research jobs in the area. Kirtland Air Force Base is also close by. However, the Albuquerque housing market isn’t seeing insane appreciation because that inflationary effect is countered by the lower average wages in the area. Yet the largest employers are in relatively stable sectors like healthcare and education. Hospitals and the University of New Mexico are two of the biggest non-governmental employers.
The Local Economy Creates a Large Population of Renters
A little over seventy percent of residents own their homes. However, the local economy will prevent the majority of those renters from buying homes. The lower than the average income in the Albuquerque housing market combined with the higher than average home price means a large minority of the population is priced out of the housing market. They can only rent. Another contributing factor is the outsized student market, thanks to the several schools in the area.
These young adults may choose to find jobs upon graduation and remain in the Albuquerque housing market, but they won’t be buying homes while attending school. This means you can buy Albuquerque real estate investment properties intended to cater to this nearly recession-proof rental market. For example, people move here to work because wages are higher than the state average (roughly 25K) and employment rates higher. They move here because it is better than where they came from, but they can’t commit to a house payment until they’re doing better personally.
One reason to consider buying Albuquerque real estate investment properties is the large population of renters created by Kirtland Air Force Base. Military personnel is likely to be renters since they shouldn’t buy property when they’re nearly certain to move in a few years. This large population of renters explains why rental rates in the Albuquerque housing market are relatively high, roughly 1300 a month. It also explains why rental rates in the suburbs of the Albuquerque real estate market are a little higher than those in “downtown”.
Local Rules Balance the Rights of Landlords and Tenants
States are often ranked as either tenant-friendly or landlord-friendly. New Mexico is more landlord-friendly than Arizona, though it isn’t as landlord-friendly as Texas or Colorado. Landlords can require reasonable deposits, though this is limited to one month’s rent if the lease is less than one year. The state doesn’t have rules regarding non-refundable fees or pet deposits. However, deposits can only be used for damage to the unit or unpaid bills.
Record-keeping rules are relaxed. All of this protects the value of an Albuquerque real estate investment property since you can charge someone for the damage they or their pets do and evict them for nonpayment of rent. For example, you can begin the eviction process after they’re three days late with the rent.
Conclusion
Maybe you have done a bit of real estate investing in Albuquerque, NM but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Albuquerque real estate investment opportunity would be a key to your success. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Albuquerque, NM is your ability to find great real estate investments in that area. According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a local real estate investment counselor.
The other best place to invest in real estate is Omaha, NE. Omaha isn’t booming, but it isn’t busting, either. It is a slow, steady, and solid real estate market that has quite a few things going for it. It is attractive to residents, allowing it to retain its youth, while it attracts people from across the country in search of work. That isn’t going to make the headlines, but it is exactly the sort of long-term value play that we’d associate with the Oracle of Omaha. Omaha's real estate market has a track record of generating one of the best long-term returns in the U.S. over the last ten years.
Another sizzling market to invest in real estate is Fort Collins, CO. The Fort Collins area is growing both as an outer suburb of Denver and for its reasons, making it the fourth-largest city in the state. The city offers an ideal mix of jobs, affordable living, and decent quality of life that will keep it strong for years to come. The Fort Collins real estate market has seen steady appreciation because the population itself is growing slowly but steadily. The population has been growing at roughly two percent a year. This causes the Fort Collins real estate market to appreciate at a slightly faster rate, but the Fort Collins housing market isn’t so hot that locals are priced out.
However, the relatively young population creates an opportunity for those who own Fort Collins real estate investment properties. You can rent the property to the steady stream of students, or you can rent it or sell it to the young adults who choose to stay in the area and work for one of the major employers.
Let us know which real estate markets you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
Housing Market Data, Trends & Statistics
https://www.zillow.com/albuquerque-nm/home-values
https://www.redfin.com/city/513/NM/Albuquerque/housing-market
https://www.movoto.com/albuquerque-nm/market-trends
https://www.neighborhoodscout.com/nm/albuquerque/real-estate
https://www.realtor.com/realestateandhomes-search/Albuquerque_NM/overview
Landlord friendly
https://www.landlordology.com/new-mexico-landlord-tenant-laws
https://www.nolo.com/legal-encyclopedia/tenant-defenses-evictions-new-mexico.html
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
Economy and renters
https://realestate.usnews.com/places/new-mexico/albuquerque
https://www.usnews.com/news/best-states/new-mexico
