Multifamily housing units in Albuquerque continue to show high occupancy rates and solid rent growth, according to a January survey by commercial real estate services and investment firm CBRE.
The CBRE January 2018 apartment market survey looked at both market-rate and affordable properties in the Albuquerque area and found market-rate rents increased at a rate of 2.25 percent year-over-year, from an average of $800 to $818.
The statistics were based on 194 multi-housing communities with nearly 41,000 units, including 148 market-rate and 46 affordable properties.
Although occupancy at market-rate units was down by just over a half percent from last year, it remains high, at nearly 95 percent. Affordable-rate property occupancy declined by about 1 percent, while rents rose by 1.51 percent.
Studio apartments saw the highest gains in rental rates at 3.71 percent, with rent for one-bedroom units rising 2.49 percent and for three-bedroom/one-bath apartments at 2.11 percent. Rents for two-bedroom/two-bath units rose at a rate of less than 2 percent.
The survey forecasts modest growth for the multi-unit market in Albuquerque over the next two years, with an estimated 1,200 market-rate units and about 400 affordable units expected to be built. Market-rate apartments are planned for the NE Heights, Downtown and Uptown, with affordable housing scattered throughout the city.
CBRE has conducted the apartment market survey three times annually since 2008, and has consistently found January to be the seasonal low point for multifamily housing occupancy, with an increase in May and a high point in September. Los Angeles-based CBRE is the largest commercial real estate firm in New Mexico, with $447 million in 2017 transactions, according to Business First’s List.
Nearly 40 percent of Albuquerque properties offer renters some form of concessions, including “specials” that affect first-month or ongoing rent reductions, the survey found.
Albuquerque’s apartment market contributes more than $1.3 billion to the local economy and 14,300 jobs are supported by the industry, according to Hoyt Advisory Services research.
The city also was ranked 22nd out of 50 metro areas in terms of the hardest cities in which to add needed apartments, according to that research.
However, the same research ranked Albuquerque toward the "easier" category in terms of local regulations and available land.