Albuquerque Rent Growth Doubles National Norm
While apartment rent growth in Albuquerque has come down from 2021 peaks, rates continue to outpace the national norm. Average effective asking rents in the New Mexico market were up 7.2% year-over-year as of April, which was more than double the 3.2% increase in the U.S. overall, according to data from RealPage Market Analytics. Just five years ago, apartment prices in Albuquerque averaged closer to $800, or less than $1 per square foot. As of April 2023, that rate has increased to $1,265 per month, or $1.53 per square foot. For comparison, rents in nearby Tucson are similar at $1,196 per month, or $1.55 per square foot, while Phoenix prices go for a bit more at $1,614 per month, or $1.86 per square foot. Albuquerque is the smallest of these three markets, with an existing unit count of around 56,500 units. Over that five-year time frame, apartment deliveries in Albuquerque have been relatively limited, averaging roughly 300 units annually. Demand has also averaged at 300 units annually, though that does include some annual net move-outs that started in 2022 and have continued into 2023.