Albuquerque 1Q23 Multifamily Market Insights Report: After years of undersupply, construction is on the rise



Multifamily property performance in Albuquerque has been fueled by an extremely low vacancy rate, limited construction and rising rents. In the first quarter, rents inched lower — despite extremely tight vacancy conditions.

Vacancy was flat in the first quarter, following four consecutive quarterly declines. The rate has declined 100 basis points year over year to just 1.9%.

After two years of steep rent increases, apartment operators gave back some of the recent gains at the start of 2023. Asking rents ticked lower by 1% to $1,270 per month in the first quarter. In the past 12 months, rents spiked by 8.7%.

Transaction volume was limited during the first quarter. In the handful of properties that sold and where pricing was available, the median sales price was $182,900 per unit up 37% from last year’s figure.

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