Albuquerque Q4 Multifamily Market Insights: Rapid Rent Growth Recorded in Second Half of 2021
Highlights:
- The fourth quarter proved to be a strong end to a year of rapid improvement in the Albuquerque multifamily market. Vacancies ended the year near all-time lows, rents continued to trend higher at a rapid clip, and the investment market sustained the momentum that had been building in previous quarters.
- After reaching a historical low in the third quarter, the local vacancy rate inched higher at the end of 2021. Vacancy rose 20 basis points in the final three months of the year, reaching 3 percent. Despite a slight increase in the final months of the year, area vacancies still posted a 30-basis-point decline in 2021.
- Asking rents rose 5.8 percent in the fourth quarter, building on steep increases that occurred earlier in the year. For the full year, asking rents spiked 21.8 percent to $1,145 per month.
- The past year was a consistently active one for sales velocity. Prices spiked, outpacing the rate of rental increases. Cap rates compressed, ending the year below 4 percent.
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