Albuquerque Q4 Multifamily Market Report: Tight conditions to prompt heightened deliveries in 2023

Highlights:

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• Property fundamentals in the Albuquerque multifamily market continued to strengthen during the fourth quarter, as the market’s supply shortage kept vacancies tight. In response to the low vacancy conditions, operators increased rents aggressively in 2022.
• Vacancy conditions tightened in recent months, as supply growth was limited in 2022 and absorption levels remained strong. The vacancy rate dropped 80 basis points during the fourth quarter to 1.9 percent. Year over year, local vacancy improved by 110 basis points.
• Asking rents continued to rise at a rapid rate, as rents advanced 2.9 percent in the last three months of 2022 to $1,283 per month. Area rents increased by 12.1 percent year over year.
• Multifamily transactions dipped from the third quarter to the fourth quarter, but transaction counts for the full year did not fall outside of the region’s historical range. In sales where pricing was available, the median price in 2022 was $133,100 per unit, down less than 1 percent from the median price in 2021.

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