April 6, 2026

Albuquerque multifamily sales activity shifts toward newer vintages

Q4 2025

Albuquerque multifamily market overview

Supply growth in the Albuquerque multifamily market has been elevated in recent years, a trend that continued in 2025 but shows signs of reversing in the coming quarters. More than 1,600 units delivered in 2025, after a combined 2,200 units came online in 2023 and 2024. While supply growth persisted in 2025, vacancies largely leveled off, rising during the first quarter and then holding in a tight range for the remainder of the year. Area vacancy has remained at roughly 7.2% in each of the past three quarters; in the nine months prior, the rate rose 80 basis points. The vacancy rate in the Rio Rancho submarket has fluctuated in response to shifting supply trends. The rate spiked in 2024 after more than 600 units came online from September 2023 to March 2024. As development leveled off in this area, vacancy came down, with the rate improving by 310 basis points during the past 12 months.

Despite the pace of multifamily sales accelerating throughout the year, total sales in the Albuquerque multifamily investment market during 2025 tracked the light levels recorded in the preceding two years. Pricing declined in recent periods as LIHTC deals were prominent. In transactions where pricing was available, the median price for the full year was $139,800 per unit, down 10% from levels recorded last year. In the market rate deals with available transaction pricing, Poblana Place sold for roughly $212,500 per unit, highlighting pricing for recent construction. Sales of more recently completed properties made up a larger share of activity. Properties built since 2014 accounted for half of all sales during the past 12 months, while these same vintages made up just one-third of the transactions in the previous year.

Looking ahead:

After three consecutive years of elevated delivery totals, the pace of new supply growth is forecast to slow significantly in 2026. Projects totaling just 500 units are forecast to come online in the coming year, similar to the region’s historical average annual inventory growth trends. Recent permitting trends suggest delivery totals ranging between 500 units and 750 units per year may be the future trend in Albuquerque. With supply growth remaining relatively modest, the vacancy rate should hold in the low-7% range in the coming quarters after rising for four consecutive years. Rent growth is forecast to resume, as vacancy conditions remain stable. Since spiking in 2022, rents have posted uneven performance, with years of minimal gains or slight losses.

Sales activity in the Albuquerque multifamily investment market should increase in the coming quarters following lighter activity in recent years. While the region traditionally records LIHTC deals at a strong clip, the recent split between LIHTC sales and market rate deals was skewed heavily towards the former, as market rate deals have been at a near standstill. If vacancy remains stable and rent growth resumes, the pace of sales for market rate properties should accelerate in the coming year, which may bring overall sales activity back to traditional levels. Recent supply growth should also create new opportunities, as the more than 3,800 units that have come online during the past three years continue to gain occupants. Every property that came online in 2023, and more than half of the properties that delivered in 2024, have completed lease-up.