Affordable real estate prices, a low cost of living and doing business, and a high quality of life have made Albuquerque a popular destination for real estate investors and moneymakers.
According to a report from KOB 4 TV, the Albuquerque real estate market is still seeing several offers and consumers paying over list price, with newly-listed single-family houses getting under contract in just 16 days.
Albuquerque is the state’s most populous city as well as its economic and business center. Albuquerque, which began as a trading town in 1706, is still notable for its many well-known trade routes, such as Route 66 and the Santa Fe Railway. Albuquerque is the center of New Mexico’s healthcare business, and the metro area has also evolved into a high-tech industrial cluster.
While extreme weather and natural catastrophes can wreak havoc on businesses and inhabitants in other areas of the country, Albuquerque is regarded for being a low-risk location with a highly qualified workforce, low cost of living, and aggressive corporate incentives that keep the economy expanding.
Here are some of the reasons why almost one million people consider Albuquerque to be the best city to live, work, and grow.
Growth in the population
Metropolitan Albuquerque has risen at a higher rate than the rest of New Mexico since 1950. Historically, the population of the area has increased at a consistent rate of 1% to 2% every year.
Stats on the Population:
Albuquerque is New Mexico’s largest city, with a population of about 564,000 people in the city and 916,000 in the metropolitan region.
Bernalillo, Sandoval, Torrance, and Valencia counties make up the Albuquerque metro region.
According to the most recent census, Albuquerque’s population has decreased by 0.25 percent year over year, but has increased by more than 3.4 percent over the last ten years.
Albuquerque’s unemployment rate is currently 5.1 percent (as of October 2021), with employment growth exceeding 4.1 percent the previous year.
According to the City of Albuquerque, job growth in Albuquerque had reached a ten-year high prior to the pandemic (ABQ). Construction, manufacturing, leisure and hospitality, trade and transportation, and professional and business services are among the job sectors in Albuquerque that are exhibiting the most indications of recovery as company growth returns and the economy begins to revive.
Stats on Employment:
According to the Federal Reserve Bank of St. Louis, the Albuquerque MSA’s GDP is over $45 billion and has increased by about 22% in the last ten years.
Albuquerque’s employment increased by 4.1 percent, but median household income increased by 14.4 percent.
Metro Albuquerque’s median household income is $58,512, with a per capita income of $32,112.
Albuquerque was ranked 126th in the country by Forbes as the greatest place for business and careers.
Aerospace and aviation, solar technology and renewable energy, microsystems and nanotechnology, semiconductors and electronics, and IT software and cybersecurity are all important businesses in the Albuquerque metropolitan area.
Kirtland Air Force Base, University of New Mexico, Sandia National Laboratories, Blue Cross Blue Shield of NM, Safelite Autoglass, and General Mills are all major employers in Albuquerque.
High-tech businesses such as Intel, Facebook, and Netflix have offices in Albuquerque.
The University of New Mexico, Central New Mexico Community College, Southwest University of Visual Arts, and Southwestern Indian Polytechnic Institute are among the major colleges and universities in Metro Albuquerque.
Over 89.3 percent of Albuquerque residents have a high school diploma or more, with nearly 33.2 percent having a bachelor’s or postgraduate degree.
Albuquerque is a regional distribution hub for national and international goods, with dependable air, ground, and train transportation.
Eight major airlines and four smaller airlines serve Albuquerque International Sunport, with nonstop service to over 20 major destinations including Chicago, New York, Dallas, and Atlanta.
Market for real estate
The cost of living in Albuquerque is increasing. According to KRQE, the housing market in Albuquerque is competitive due to a lack of properties and bidding wars. Low mortgage rates, along with a scarcity of homes for sale, are causing some open houses to be overflowing with potential buyers. The abundance of good, high-paying positions in the Albuquerque metro area has also made the city a money-making destination.
Statistics on the Market:
As of November 2021, the Zillow Home Value Index (ZHVI) for Albuquerque is $277,530.
Albuquerque’s home values have climbed by 18.9% in the last year.
Home values in Albuquerque have climbed by more than 54% in the last five years.
According to the most recent report from the Greater Albuquerque Association of Realtors (GAAR), the median transaction price of a single-family home in Albuquerque is $310,000 as of November 2021.
Single-family home sales prices in Albuquerque have risen by 21.1 percent year over year.
The average number of days on the market from listing to contract is 16.
Albuquerque’s inventory of single-family houses for sale has declined by 48.4% year over year.
According to Realtor.com, High Desert is the most expensive of Albuquerque’s 207 communities, with a typical listing price of $650,000.
South San Pedro is Albuquerque’s most cheap area, with a typical home listing price of $190,000.
WalletHub ranks Albuquerque, New Mexico as the 31st best market for renters, citing solid rental markets and affordability, as well as a high quality of life.
Metro Albuquerque is also regarded as one of the top areas in which to invest in rental property for both cash flow and appreciation. The area’s consistent population and job growth, as well as reasonably priced real estate, provide pretty much everything a rural real estate investor could want.
Statistics on the Market:
According to the most recent research from Zumper, the median rent in Albuquerque is $1,695 per month for a three-bedroom property (December 2021).
Albuquerque rents have climbed by 22% in the last year.
Rents for a three-bedroom apartment in Albuquerque have jumped by approximately 36% in the last three years.
In Albuquerque, renter-occupied households account for 41% of all occupied housing units.
La Mesa, Trumbull Village, and Los Volcanes are three of Albuquerque’s most cheap neighborhoods, with rents ranging from $800 to $870 per month.
Heritage East, Tanoan Comm, and Del Rey are the most expensive areas to rent in Albuquerque, with monthly rates ranging from $2,058 to $2,900.
Price increases in the past and housing affordability
Real estate investors can study different markets around the United States in a variety of ways to determine the prospective demand for rental property. Monitoring the historical change in local house prices and the affordability of housing in each market are among the different instruments available.
The Freddie Mac House Price Index (FMHPI) is a monthly index that tracks the change in home prices in U.S. real estate markets. The research compares the monthly change in house prices in each state and metro region to a benchmark of 100 set in December 2000.
Freddie Mac’s most recent FMHPI for the Albuquerque housing market shows:
HPI for October 2016: 147.5
HPI: 220.5 in October 2021; 5-year change in home prices: 49.5 percent
Change in property prices over a year: 18.0 percent
Change in property prices per month: 1.5 percent
Housing affordability is another criterion that real estate investors can use to determine how favorable a rental market is.
The yearly research issued by Kiplinger’s Personal Finance measures home prices in the top 100 metropolitan regions, then provides an affordability scale of 1 to 10 to each real estate market, with 1 being the most affordable and 10 being the most costly.
According to the Kiplinger affordability index study for Albuquerque,
Home prices in Albuquerque have climbed by 11.5 percent from the last real estate cycle market peak in May 2006.
Home prices in Albuquerque have climbed by 55.3 percent from the last real estate cycle market bottom in March 2012.
Albuquerque has a 6 out of 10 affordability index, making it one of the most expensive housing markets in the country.
According to Albuquerque Economic Development, the metro area’s low cost of living and high quality of life make it one of the finest areas to generate money. In reality, the Albuquerque metropolitan area rates lower than the national average in major cost-of-living indicators such as groceries, utilities, transportation, and health care.
Stats on Quality of Life:
According to Forbes, the cost of living in Albuquerque is 4% lower than the national average.
Albuquerque is less expensive to live in than major western and southwestern cities like Dallas, Denver, Las Vegas, and Phoenix.
Albuquerque receives a B+ for quality of life from Niche.com, with good marks for weather, public schools, and outdoor activities.
U.S. News & World Report ranks Albuquerque as one of the finest locations to live in the country, with high scores for value, employment market, and general desirability.
With an average travel time of just 26 minutes, Albuquerque is regarded as the 13th best commuting city in the country.
Albuquerque people enjoy a temperate semi-arid climate with 310 days of sunshine each year.
From urban lofts in Downtown Albuquerque to the expanding suburban neighborhoods of Rio Rancho and Los Lunas, Metro Albuquerque has a wide range of housing designs and price levels.
In the broader metropolitan area, the Albuquerque – Santa Fe region features world-class opera, local theater performances, tribal historical museums, and approximately 300 art galleries.
The International Balloon Fiesta in Albuquerque attracts over 800,000 visitors each year and is one of the most photographed spectacles in the world.
The University of New Mexico is a nationally recognized Class I medical research university, and the Lovelace Respiratory Research Institute is known for its biomedical research throughout the world.