Albuquerque Q4 Market Report: Strong Job Gains and Rent Increases Driving Investment

Highlights:

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• The Albuquerque multifamily market closed 2018 on an upswing, with rents posting their strongest increase in years and sales activity elevated. An improving labor market is fueling the market.
• Asking rents rose 2.2 percent in the fourth quarter and advanced 4.9 percent for the full year. Average asking rents ended 2018 at $865 per month.
• Vacancy rose 40 basis points during the fourth quarter, reaching 4.8 percent. The vacancy rate crept higher in response to an uptick in new units delivered in the second half of the year.
• The investment market posted a particularly strong year in 2018, with sales velocity rising by approximately 50 percent. Elevated investor demand caused cap rates to compress into the low-6 percent range on average.

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