Albuquerque Q1 Multifamily Market Report: With Vacancy Low, Investors Ramp Up Activity

Highlights:

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• The Albuquerque multifamily market continued to record steady performance during the first quarter. The local vacancy rate has remained low, and rents are trending higher at a rapid pace. Investors are responding to the healthy property performance by accelerating the pace of acquisitions.
• The vacancy rate for area apartment properties held steady at 3.3 percent for the third consecutive quarter. The rate is down 50 basis points year over year and is forecast to record a modest decline in 2021.
• Rents continue to push higher, supported by consistently low vacancy rates. Asking rents reached $958 per month in the first quarter, up 4.6 percent from one year ago.
• Sales activity accelerated at the beginning of 2021, with transactions largely concentrated in older Class C properties. The median price in sales where pricing was available was approximately $80,400 per unit, while cap rates averaged 5.2 percent. Cap rates have started to compress in the second quarter.

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