Albuquerque Q2 Multifamily Market Report: Vacancy Tightens, Supporting the Local Investment Market
Highlights:
- The Albuquerque multifamily market continues to strengthen, despite job losses recorded in the second quarter. There could be some modest softening in the second half of the year as the pace of deliveries accelerates.
- Apartment vacancy in Albuquerque improved in each of the first two quarters of 2020. The rate reached 3.5 percent at midyear, 60 basis points lower than one year earlier.
- With vacancy tightening, rents have continued to trend higher. Average asking rents have increased 3.1 percent year over year, ending the second quarter at $917 per month.
- Sales activity in the second quarter ran slightly ahead of the pace recorded during the first quarter. The median sales price has risen, reaching $121,500 per unit in transactions where pricing information is available. Cap rates have compressed to an average of 5.5 percent.
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