How is the Albuquerque real estate market? Is the city a good place for property investments in 2022 and the future? Generally, real estate is one of the most promising investments worth trying. Even common people with a lot of capital money can just buy land and keep it that way. When they sell it in the future, the profits are on their hands whether they are big or small.
But professional investors, of course, will do more than just keep the land without doing anything. Even before starting to invest, they must do some actions such as planning, research, and choosing the best place for this.
Undeniably, in the USA, there are many places considered the best for real estate and property investments. Some of them are famous cities like New York or Los Angeles. But some others are indeed less popular like Albuquerque. So, do you want to try to invest your money in this city?
Albuquerque is one of the potential property markets in the country. It is the biggest city in the state of New Mexico as well as it is a home to around a half million people. Indeed, some other cities in New Mexico overshadow Albuquerque; Santa Fe, Clovis, and Roswell. But some points make the city better than others. So, make sure to read this passage until the end.
A Brief History of Albuquerque’s Real Estate Market
For so many years, Albuquerque real estate has had some areas that are considered the best for property investment. Some good examples are the Ventana Farm, Cabezon, Enchanted Hills, Hills Village, Northern Meadows, Tanoan, and Alturaand. Those locations have many factors to make properties more valuable.
The average prices of houses in those areas are fluctuating from year to year but the trend shows they are gradually increasing. The trend continues in 2022, making Albuquerque promising for property investment.
Besides, there are more methods conducted by investors to analyze the property market trend in the US. One of them is by recording historical changes in every location annually. The data are collected to analyze if the trend is just the same. The result is used to determine the current trend of the property market as well as decide whether the year is a better time to sell or to buy.
One of the analysts coming from Freddie Mac. He published a monthly housing price index to measure the change in property prices in the US. The report looks backward at the period of December 2000 or more than 20 years ago. Changes in the house prices were compared including the Albuquerque houses for sale in the metropolitan area.
For Albuquerque in New Mexico, the history of the real estate market trend showed that the HPI in April 2017, it is 150.2 and in April 2022, it is 234.8. The change in house price in 5 years was 56.9% while the monthly change in the same period was 1.4%.
Another method is used to know how good the market for rental houses is and their affordability. The method is conducted and published yearly by Kiplinger’s Personal Finance. The report shows that the peak of the real estate cycle happened in May 2006 in Albuquerque. After that, the real estate price in the city increased by 11.5%.
The next end of the cycle was in March 2012. There was a significant increase in the average house price in Albuquerque, it was 55.3%. Based on the index from Kiplinger’s method, Albuquerque has an affordability index of 6 out of 10. It means that the city is one of the most affordable real estate markets in the US.
Albuquerque Population and Growth
Albuquerque is a city located in the area of Bernalillo County in New Mexico. Based on the latest Census in 2020, the population of the city was 563,165. It also grows at 0.16% annually and the population has developed by 3.00% in the last 10 years. The population is approximately 558,000 and the Albuquerque metro population is 903,000.
The average household income in Albuquerque is $72,265 with a poverty level of 15.95%. The average rental price is $889 per month with the buying price of $204,100.
Compared with some other big cities in the US, Albuquerque is relatively isolated. It even takes around 4 hours to reach it by driving from the nearest city. The metropolitan area includes some big locations such as Rio Rancho, Bernalillo, Bosque Farms, Corrales, Belen, Placitas, and Los Lunas. Thus, it makes Albuquerque the 59th biggest metropolitan area in the country.
Around 35% of the total population in Albuquerque is bilingual as the people are fluent in English and Spanish. That’s why the city was awarded as the most creative city in the US.
In terms of the population growth, Albuquerque is indeed left behind by other big cities in the country. Currently, the metropolitan population grows only at the level of 1 to 2% per year. Meanwhile, if we look at it in the past, from 2000 to 2010, the population of the metropolitan area increased by 21%.
Albuquerque Real Estate Market
Generally, the rental price in Albuquerque increases recently as well as the buying price that tends to be low. And it looks like the trend maintains that way in 2022. Based on data published by Redfin, the housing market in Albuquerque in 2022 is not too competitive. Only a few houses in certain locations get high demands.
Those houses are sold at prices of 3% higher than the offer. The transaction process also doesn’t take a very long time, it is averagely only dealt with in 12 days. Meanwhile, houses included in the hot list gain prices 7% higher than offers with the delay of 5 days.
In the mid of 2022, the details of the Albuquerque Real Estate Market are as follows.
- The average price for Albuquerque homes for sale is $327,000, increasing from the average price in 2021 at 21.1%.
- The average price of land per feet square is $190, increasing from the average price in 2021 at 20.3%.
- In the past month, from May 26 to June 26, 2022, there are 753 houses sold in Albuquerque.
- Aside from houses, some other properties sold in the same period are 180 condominiums, a townhouse, and 48 units of multi-family houses.
- The average listing price of houses to sell in the city is $325,000.
- Some of the houses and properties mentioned above are known as hot homes, including in the hot list, meaning that they will be sold out faster.
Meanwhile, Realtor.com also publishes data about the current condition of the Real estate market in Albuquerque. The data show that the median home listing price in Albuquerque is $324,000 in April 2022. It increases by 15.7% from year to year. In addition, the median home listing price per feet square is $185.
The website also states that the current real estate market trend in the city is the seller market. It means that more people are interested in buying houses than the supplies. Although the condition is still good enough for investors, 2022 is not better than 2011 as the average of median days has decreased.
It is noted that there are around 207 locations in Albuquerque that are ideal for property investment. The most expensive one is High Desert with an average price of $612,000. On the other hand, the most affordable location is the area not far from the North Valley, with an average price of $190,000.
Albuquerque Real Estate Market Forecast
Some websites and experts have predicted the future of the Albuquerque real estate market at least for the next 5 years. They forecast any possibilities of Albuquerque houses for sale and rent. One of them is WalletInvestor.com which suggests investors invest in properties in Albuquerque for a longer-term. At the same time, the website also said that a short-term investment in the city is not so good.
With the average home listing price of more than $300,000, the profit of investing in a house for 5 years is around 4.06%. That number is quite high that year but it is too small if you just invest it to sell in 2023. Meanwhile, you can get a profit of around $104,060 in 2027 by investing $100,000 in properties today.
Pros and Cons of Albuquerque Real Estate Market
Albuquerque is a great city for investors, of course, although you cannot say that it is the best one. That’s why you can find a bunch of pros if you are investing money in properties there. What are the pros? Here they are.
First, generally, the prices of properties in Albuquerque tend to be more affordable than in other big cities in the USA. Well, you cannot say that it is too cheap and the average price is indeed still higher than in places like Milwaukee. But comparing it to cities like Los Angeles or even Miami, it is still lower.
Second, the Albuquerque cost of living is also still not too high. Even in the list of 75 most populated cities in the country, the city is considered one of the least expensive to live in.
Third, many people prefer renting a house or an apartment unit in Albuquerque instead of buying. Many people just live here temporarily for reasons like study or jobs. That’s why they find it better to rent a property, not buy it. It is very beneficial if you are a landlord in the city.
Fourth, Albuquerque may not be Miami where the sun shines brightly and warmly all day long. But you can still say that the weather there is nice and super comfortable. Well, it also becomes the next reason why people are interested in living in the city.
Lastly, along with the many benefits you get as mentioned above, you can still enjoy the rousing crowd of the big city. Of course, you cannot compare it with bigger cities like New York or Los Angeles. But don’t worry, Albuquerque is not quiet at all as well as there are many interesting public places to enjoy.
When there are pros, there must be cons as nothing is perfect in this world. So, what are the cons of investment properties in Albuquerque? Here they are.
First, unemployment is one of the biggest problems in the city. Yes, and it is getting more annoying if some of the unemployed people are tenants in your houses. They may not pay the rent on time.
Second, no matter how well the city has improved, you must still accept the fact that Albuquerque is not that popular. Newcomers in the city are mostly only local and there are only a few immigrants who live here. This is also the main reason why in some areas the rental price in the Albuquerque housing market is quite low.
Albuquerque Real Estate Market FAQs
- Is Albuquerque a buyer’s or seller’s market?
Based on surveys and data per April 2022, Albuquerque along with some cities in New Mexico is the seller’s market. It means that currently, more people look for properties to buy instead of selling. At the same time, the homes to sell are more limited than the demands.
- Is Albuquerque a good place to invest in real estate?
Albuquerque may not be the best place to invest in the US but the chance for development is very big in the future. The buying prices for properties are low while the renting prices are higher. Besides, the population in the city has also significantly grown recently. The Albuquerque median home price also improves compared with it 5 years ago. Even WalletHub lists the city as the 31st best market for renters in 2022.
- Is now a good time to buy a house in Albuquerque?
Yes, it is. The average price of houses in Albuquerque is quite affordable. Indeed, there are some expensive houses in certain locations but some others are even very cheap. By remembering that the prices can be increased in the following years, 2022 is a good time to buy a house in the city.
