Albuquerque Q3 Multifamily Market Report: Market Strength Highlighted by Cap Rate Compression
Highlights:
- The Albuquerque multifamily market posted rapid improvement during the third quarter. Vacancy fell significantly, while rents spiked. Per-unit prices surged after inching lower in the first half of the year.
- Vacancies tightened in Albuquerque during the third quarter, reaching levels that have not been recorded in more than 20 years. The rate fell 80 basis points to 2.8 percent in the third quarter; year over year, vacancy is down 50 basis points.
- Asking rents surged to $1,082 per month in the third quarter; current rental rates are up 16.1 percent from one year ago.
- Investment activity in Albuquerque has been healthy for the past several periods. Prices rose and cap rates compressed, particularly during the third quarter. The median price is up more than 30 percent in 2021 at $131,250 per unit, while cap rates have dipped to an average of 4.5 percent.
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