Albuquerque Q2 Multifamily Market Report: Rents Rising, Fueling Transaction Activity

Highlights:

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• The Albuquerque apartment market recorded healthy performance during the second quarter, highlighted by an accelerating pace of rent growth.
• Asking rents reached $975 per month in the second quarter, 5.7 percent higher than one year ago. Rents are forecast to top $1,000 per month by the end of this year.
• Vacancy inched higher during the second quarter, the first quarterly rise since the end of 2019. The rate was 3.6 percent at midyear, up 10 basis points year over year.
• The local investment market is strengthening. The pace of transaction activity in the first half of this year nearly matched the total sales for all of 2020. On average, cap rates have largely held steady at about 5.2 percent, even as the median price has ticked lower in response to an increase in sales of older assets. Some properties have traded with cap rates below 5 percent, and a handful of transactions have closed with cap rates below 4 percent.

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