The housing market is still hot in Albuquerque and shows no signs of slowing down. According to Dwellsy, a rental information and research service, since the start of 2021, rents have increased 18% in Albuquerque. This is almost double the national increase of 9.6% in rents.
To put it simply, the dramatic increase in rents can be attributed to the pandemic. According to Dwellsy CEO and co-founder Jonas Bordo, the pandemic has motivated many people to stay at home to reassess their living space. “What we’re seeing is a market-by-market reshuffle of the way people live,” Bordo said.
Due to a drastic shift in the number of American workers who were forced to work from home, many saw a change in their work environment as an opportunity to either move from their current rent situation or move to a city. which offered a lower cost of living. and more opportunities for outdoor recreation. Albuquerque is a city that has managed to go relatively unnoticed over the past few decades as an affordable outdoor mecca. Not anymore.
“This is one of the most difficult markets I have seen in a long time for tenants. We are just seeing rents climbing at an incredibly fast rate for virtually any type of rental, ”Bordo said. The part of the rental market that has been hit the hardest by an influx of residents has been two bedroom rentals. According to Bordo, the rent for a two-bedroom house increased by 28% in 2021. To quantify this increase, that’s $ 251 more per month.
Despite the sudden increase in rents, Albuquerque still has one of the most affordable housing markets in the country. “Albuquerque is one of the cheapest markets in the country, but if you were to pay $ 250 more this year than you didn’t have to pay last year, that’s kind of a little consolation.”
Part of the rent increase can be attributed to tenants wishing to move to a single-family home. The problem is that demand has suddenly far exceeded supply and there simply aren’t enough single family homes for everyone. There has been a lull in the development of single-family homes and affordable housing for first-time buyers due to strong resistance from many neighborhoods.
“What we’ve seen is an incredible reluctance to create new stocks across the country,” Bordo said. “We are simply not building enough to house the population. “
According to Bordo, there could be an end to the increase in rental prices. Renewed demand for entry-level and affordable housing has prompted municipalities to invest in housing. But until supply is able to catch up with demand, rents will likely continue to rise in the near future.