Albuquerque Q3 Multifamily Market Insights: Rapid rent growth persists

Highlights:

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• Albuquerque’s multifamily market posted a healthy performance during the third quarter, as vacancy remains near an all-time low and rents continued to advance at a rapid pace. Deliveries have been minimal, but construction is gaining momentum and will pick up in the final months of the year and into 2023.
• Local vacancy ticked higher in the last three months, rising 10 basis points during the third quarter, to 2.7 percent. Year over year, the vacancy rate has fallen 10 basis points.
• Asking rents continued to record steep increases, advancing 2.8 percent during the third quarter to $1,247 per month. Year over year, local rents have spiked 15.2 percent.
• Sales velocity has been active through the first three quarters of the year. In sales where pricing was available, the median sales price rose to $164,350 per unit. Cap rates have begun to inch higher, with most properties selling with cap rates around 4.5 percent or higher in the third quarter.

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