Albuquerque, NM · Comprehensive Housing Market Analysis

Executive Summary

Housing Market Area Description

The Albuquerque, NM Housing Market Area (HMA) is situated in the central part of the state of New Mexico. It encompasses four counties: Bernalillo, Sandoval, Torrance, and Valencia. The metropolitan area is geographically positioned in a valley of the Chihuahuan Desert, bordered by the Sandia Mountains to the northeast and the Albuquerque Volcanoes, also known as the Three Sisters, to the west. The Rio Grande River flows directly through the city, providing a vital water source and supporting the Bosque, a cottonwood forest that is a significant ecological feature of the region. The area's location and natural features contribute to its unique climate, characterized by mild and dry conditions with infrequent rainfall.

The economy of the Albuquerque HMA is diverse, with key sectors including aerospace and defense, healthcare, education, and technology. The presence of major research institutions and national laboratories, such as Sandia National Laboratories and the University of New Mexico, has established the city as a hub for innovation and intellectual pursuits. Tourism also plays a crucial role in the local economy, with visitors drawn to the area's cultural diversity, historical landmarks, and natural beauty. The film industry has gained prominence in recent years, further diversifying the economic landscape. Additionally, Albuquerque's history as the founding location of Microsoft by Bill Gates and Paul Allen in 1975 highlights its longstanding connection to technological advancement.

As of January 1, 2026, the population of the Albuquerque HMA is 925,279. The area's cultural richness is reflected in its architecture, artwork, and cuisine, making it one of the most culturally diverse cities in the nation. This diversity is a vibrant part of daily life, contributing to Albuquerque's reputation as the cultural capital of New Mexico. The combination of a strong economic foundation, a rich cultural heritage, and a strategic geographic location continues to shape the growth and development of the Albuquerque metropolitan area.

Tools and Resources

• Find interim updates for this metropolitan area, and select geographies nationally, at PD&R's Market-at-a-Glance tool.
• Additional data for the HMA can be found in this report's supplemental tables and the *.audit.json sidecar file written beside this markdown.
• For information on HUD-supported activity in this area, see the Community Assessment Reporting Tool.

Market Qualifiers

Economy

The Albuquerque, NM metropolitan area experienced a decline in nonfarm payrolls during the 12 months ending February 2026, with a reduction of approximately 1,608 jobs, representing a decrease of 0.38 percent. This contraction in employment indicates a slight weakening in the local labor market. The unemployment rate increased to 4.1 percent, up from 3.95 percent a year earlier, suggesting a shift towards a slightly slack labor market. The current unemployment rate remains within the neutral benchmark range of 4 to 5 percent, indicating that while the market is not overly tight, it is not excessively slack either.

The decrease in nonfarm payrolls may reflect broader economic adjustments within the metropolitan area, potentially influenced by sectoral shifts or external economic factors. The slight increase in the unemployment rate suggests that while job losses have occurred, the overall labor market conditions remain relatively stable. The Albuquerque economy continues to navigate these changes, with potential implications for future employment trends and economic growth.

During the 3-year forecast period, payrolls in the Albuquerque metropolitan area are expected to increase at an average annual rate of approximately 0.5 percent. This anticipated growth suggests a gradual recovery and stabilization of the labor market, supported by potential economic development initiatives and sectoral diversification. The forecasted increase in employment may contribute to a more balanced labor market, aligning with broader economic objectives for the region.

Home Sales Market

The sales housing market in the metropolitan area is currently slightly tight. The total number of home sales during the 12 months ending October 2023 was approximately 8,778, representing a decrease of 7.5 percent from the previous year. The average sales price for new homes was $443,783, down 6.7 percent from the previous year, while the average sales price for existing homes was $370,466, a slight decrease of 0.04 percent from the previous year. The mortgage interest rate context is not specified, but it is an important factor influencing market conditions.

The inventory of homes available for sale is currently at approximately 3.9 months, indicating a slightly tight market. This level of inventory suggests that demand is outpacing supply, contributing to the current market conditions. The demand for new sales units is estimated at 7,609 units over the next three years, reflecting ongoing demand pressures in the market. The number of homes under construction is 1,533, which will contribute to meeting some of this demand during the forecast period.

The decrease in home sales and the slight decline in home prices suggest a cooling in the market compared to previous years. However, the slightly tight conditions indicate that demand remains relatively strong. The ongoing construction activity will be crucial in addressing the demand for new homes and stabilizing market conditions. The forecast period will likely see adjustments in supply and demand dynamics as new units are completed and brought to market.

Overall, the metropolitan area's sales housing market is experiencing a period of adjustment, with slightly tight conditions persisting. The decrease in home prices, particularly for new homes, may attract buyers and stimulate sales activity. The demand for new sales units over the next three years highlights the need for continued construction and development to meet the needs of the growing population. The market's response to these conditions will be closely monitored to assess future trends and opportunities.

Rental Market

The apartment rental market in the metropolitan area is currently slightly soft. The vacancy rate stands at 7.04 percent, up from 6.34 percent a year earlier, indicating a loosening in market conditions. Average rent has decreased by 2.02 percent year-over-year, with the current average rent at $1,190. This decline in rent suggests a shift in the supply-demand balance, potentially influenced by increased vacancy rates.

The demand for rental units is evident, with 3,581 rental units absorbed during the past year. However, the construction of additional rental units remains relatively modest, with 819 units currently under construction. This level of construction activity may not be sufficient to significantly alter the current market conditions.

Given the slightly soft market conditions, additional rental construction during the forecast period could exacerbate the existing imbalance if demand does not increase correspondingly. The current vacancy rate and declining rents suggest that the market may not be able to absorb a substantial influx of new units without further impacting rental prices and vacancy rates. Therefore, careful consideration of market dynamics will be crucial in planning future rental developments.

3-Year Housing Demand Forecast

Total demand represents the estimated production necessary to achieve a balanced market at the end of the forecast period. The forecast period is from the as-of date to 3 years forward.

Notable Conditions and Recent Developments

The Albuquerque, NM metropolitan area has experienced a modest increase in population, with the current population reaching 925,279, up from 916,662. This growth reflects a steady demand for housing, as more individuals and families are drawn to the area. The increase in population suggests a continued need for housing development to accommodate the growing number of residents. The demand for housing is likely to remain strong as the metropolitan area continues to attract new residents, contributing to the overall economic vitality of the region.

Sales conditions in the Albuquerque metropolitan area are currently slightly tight, indicating a competitive market for homebuyers. This situation contrasts with the slightly soft rental market conditions, where there is less pressure on rental prices and availability. The divergence between sales and rental conditions suggests that potential homebuyers may face challenges in finding affordable housing, while renters may have more options and negotiating power. This imbalance implies that while the demand for homeownership remains robust, the rental market offers some relief for those not yet ready or able to purchase a home.

Policy and supply-side factors are influencing the housing market in Albuquerque, NM. Rising construction costs and regulatory challenges can impact the pace and type of new housing developments. Additionally, insurance and tax considerations may affect the affordability and feasibility of new projects. These headwinds can slow the rate of new housing supply, exacerbating the slightly tight sales conditions and potentially leading to increased competition among buyers. Addressing these challenges is crucial for ensuring that the housing market can meet the needs of the growing population.

Albuquerque's distinctive features, such as its cultural attractions and proximity to natural landscapes, make it an appealing destination for both residents and tourists. The area's unique blend of urban and outdoor amenities contributes to its attractiveness as a place to live and visit. This combination of factors helps to sustain the local economy and supports the housing market by drawing in new residents and visitors alike. The metropolitan area's appeal is further enhanced by its relatively mild climate and vibrant cultural scene, distinguishing it from peer metropolitan areas.

Economic Conditions

Primary Local Economic Factors

The Albuquerque, New Mexico metropolitan area is characterized by a diverse economic base with significant contributions from several key sectors. The government sector is the largest employer, with approximately 82,809 jobs, reflecting the presence of various federal, state, and local government institutions. The education and health services sector follows closely, employing about 73,764 individuals. Notable employers in this sector include Presbyterian Healthcare Services, with 13,438 employees, and Albuquerque Public Schools, which employs 11,207 people. The trade, transportation, and utilities sector also plays a crucial role in the local economy, providing approximately 69,091 jobs. Additionally, the professional and business services sector and the leisure and hospitality sector contribute significantly, with 65,682 and 45,755 jobs, respectively.

Albuquerque's economy benefits from its status as a hub for research and innovation, supported by institutions such as Sandia National Laboratories and the University of New Mexico. The city's strategic location in central New Mexico and its cultural diversity make it a popular tourist destination, attracting visitors to its unique blend of Southwestern traditions and modern attractions. The presence of the Rio Grande River and the surrounding natural landscapes, including the Sandia Mountains, further enhance its appeal. Albuquerque's historical significance is underscored by the fact that Microsoft was founded here in 1975 by Bill Gates and Paul Allen, highlighting the city's longstanding connection to technological advancement.

Demographic trends in Albuquerque indicate a growing population, which supports the expansion of the education and health services sector. The area's relatively affordable cost of living compared to other major cities in the United States continues to attract new residents, contributing to net in-migration. This influx of people is expected to sustain demand for housing and services, bolstering the local economy. The presence of major research institutions and national laboratories positions Albuquerque as a center for innovation, which is likely to drive future economic growth and diversification.

The Albuquerque metropolitan area faces both opportunities and challenges in the coming years. The continued development of the aerospace and defense industries, along with investments in technology and healthcare, are expected to create new job opportunities and stimulate economic growth. However, the region must also address potential headwinds, such as fluctuations in federal funding and the need for infrastructure improvements to support its expanding population. Overall, Albuquerque's diverse economic base and strategic initiatives position it well for sustained growth during the forecast period.

Table 1. Major Employers in the Albuquerque HMA

Estimates via Zoomprop research (Tavily live search of local economic-development and state workforce sources). Excludes local school districts.

Current Conditions — Nonfarm Payrolls

Nonfarm payrolls in the Albuquerque, NM metropolitan area totaled 419,800 during the 12 months ending February 2026, reflecting a decrease of 1,600 jobs, or 0.4 percent, from the previous year. This decline marks a deceleration in job growth compared with the previous 12-month period. The contraction in the labor market suggests a shift in economic conditions, potentially influenced by broader economic factors affecting the region.

Within the service-providing sectors, Education and Health Services experienced the most significant growth, adding 1,900 jobs, an increase of 2.7 percent. This growth may be attributed to expansions in healthcare facilities or educational institutions within the metropolitan area. The Trade, Transportation, and Utilities sector also saw an increase, with an addition of 300 jobs, or 0.5 percent, indicating a steady demand for goods and services. The Other Services sector experienced a modest gain of 100 jobs, or 0.9 percent, suggesting a slight uptick in demand for personal and business services.

In the goods-producing sectors, Manufacturing experienced a decline, losing 500 jobs, or 2.8 percent. This reduction may be linked to a slowdown in residential construction or specific industry challenges affecting manufacturing output. The Mining and Logging and Construction sectors did not report specific changes, indicating stability or lack of significant movement in these areas.

The Professional and Business Services sector experienced a notable decline, shedding 2,000 jobs, or 2.9 percent. This decrease may reflect a reduction in demand for professional services or a shift in business operations within the metropolitan area. The Government sector also saw a reduction, losing 600 jobs, or 0.7 percent, which could be attributed to budgetary constraints or restructuring within local government entities. These declines highlight areas of concern that may require strategic attention to stimulate job growth and economic stability in the region.

Table 2. 12-Month Change in Nonfarm Payroll Jobs in the Albuquerque HMA, by Sector

Source: U.S. Bureau of Labor Statistics (CES). Rows where CES is suppressed at this MSA are reconstructed from QCEW county-level annual data.

Annual nonfarm payrolls — Albuquerque HMA, 10-year trend (annual average, thousands)

Source: U.S. Bureau of Labor Statistics (CES).

Sector Deep Dive — Government

The government sector in the Albuquerque, NM metropolitan area currently employs approximately 82,809 individuals. This sector represents a significant portion of the total nonfarm employment in the region. Over the past 12 months, the government sector experienced a decline of 574 jobs, equating to a decrease of 0.7 percent. This reduction in employment reflects a contraction in the sector's workforce, which may have implications for the overall economic stability of the metropolitan area.

The payload does not provide specific names of employers within the government sector in Albuquerque, NM. However, it is common for this sector to include federal, state, and local government agencies, educational institutions, and public safety organizations. These entities typically form the backbone of government employment in metropolitan areas, contributing to public administration, education, and community services.

Several qualitative factors influence the government sector in Albuquerque. The presence of federal and state government offices, as well as military installations, plays a crucial role in sustaining employment levels. Additionally, the sector is often impacted by budgetary allocations and policy decisions at both the state and federal levels. The demand for public services, driven by population growth and demographic shifts, also affects employment trends within the sector. As the population ages, there may be increased demand for healthcare and social services, which could influence future employment needs.

Looking ahead, the government sector in Albuquerque is expected to face a stable trajectory over the next three years. While budget constraints and policy changes may pose challenges, the sector's foundational role in providing essential services is likely to sustain its importance in the regional economy. Any potential growth in this sector will depend on factors such as government funding, policy initiatives, and demographic trends that drive the demand for public services.

Current Conditions — Unemployment

During the 12 months ending October 2023, the average unemployment rate in the Albuquerque, NM metropolitan area was 4.1 percent, up from 3.9 percent during the previous 12-month period. This increase indicates a slightly slack labor market, as the unemployment rate has risen slightly over the past year. The labor market conditions in the metropolitan area reflect a modest increase in unemployment, suggesting some challenges in job creation or retention.

The unemployment rate in the Albuquerque metropolitan area is slightly lower than the state of New Mexico's rate of 4.2 percent and the national rate of 4.3 percent. This comparison indicates that the metropolitan area is performing marginally better in terms of employment than both the state and the nation. The relatively lower unemployment rate in Albuquerque suggests that the local economy may be experiencing more favorable conditions compared to broader state and national trends.

Examining the longer-term trend, the unemployment rate in the Albuquerque metropolitan area has seen significant fluctuations over the past several years. The rate peaked at 7.6 percent in 2020, reflecting the economic disruptions caused by the COVID-19 pandemic. Since then, the unemployment rate has generally declined, reaching a low of 3.4 percent in 2023. This decline indicates a recovery in the labor market, although the recent increase to 4.1 percent suggests that the recovery may be facing some headwinds. The historical data highlights the resilience of the local economy, despite recent challenges.

Annual average unemployment rate — Albuquerque HMA

Source: U.S. Bureau of Labor Statistics (LAUS).

Commuting Patterns and Labor Force Dynamics

The Albuquerque, NM metropolitan area is characterized by its interior location and is well-served by major interstate highways, including Interstate 40 and Interstate 25, which facilitate regional connectivity. The principal city, Albuquerque, acts as a central hub for commuting within the region, with a significant portion of the workforce traveling from surrounding areas. The metropolitan area does not have adjacent metropolitan areas of significant size, which influences commuting patterns by concentrating employment opportunities within the city itself. The presence of Sandia National Laboratories and Kirtland Air Force Base contributes to a stable employment base, attracting a workforce from both within and outside the metropolitan area.

Labor force participation in the Albuquerque metropolitan area is influenced by several demographic factors. The area has a diverse population with a mix of age groups, including a notable proportion of retirees, which affects overall labor force participation rates. The presence of educational institutions such as the University of New Mexico also contributes to a younger demographic in the workforce. The metropolitan area does not have a significant seasonal workforce, as it is not heavily reliant on tourism compared to other regions. However, the healthcare and education sectors are prominent employers, providing stable year-round employment opportunities.

The shift toward remote and hybrid work arrangements during the pandemic has had a notable impact on commuting patterns in the Albuquerque metropolitan area. With an increase in remote work, there has been a reduced demand for traditional office space, leading to changes in the office-sector demand. This shift has also influenced residential location choices, as workers have more flexibility to live further from their place of employment. The unemployment rate in the metropolitan area is currently 4.1 percent, reflecting a labor market that is adapting to these new dynamics. As remote work continues to be a viable option for many, the metropolitan area may see continued changes in commuting patterns and residential preferences during the forecast period.

Wages and Income

The Albuquerque, NM metropolitan area is characterized by a diverse economy with significant contributions from the leisure and hospitality, retail trade, and healthcare sectors. These sectors typically offer lower average wages compared to industries such as professional and financial services. As a result, the average wages in the Albuquerque metropolitan area are likely lower than those in metropolitan areas dominated by higher-paying industries. The presence of a large public sector, including government and education services, also influences the wage structure in the area, providing a mix of wage levels across different sectors.

The rising cost of living, particularly in terms of home prices and property taxes, poses challenges for residents in the Albuquerque metropolitan area. Although nominal wage growth may occur, it often does not keep pace with the increasing expenses associated with housing and other living costs. This situation results in tighter real incomes for middle-quintile renters, who may find it increasingly difficult to afford housing without compromising other essential expenditures. The disparity between wage growth and living costs underscores the financial pressures faced by many households in the area.

Housing affordability remains a critical issue for existing residents of the Albuquerque metropolitan area. As home prices continue to rise, the ability of residents to purchase homes or maintain affordable rental housing is strained. This dynamic can lead to increased demand for affordable housing options and may necessitate policy interventions to address the affordability gap. Ensuring that wage growth aligns more closely with the cost of living is essential to maintaining the economic well-being of residents and supporting sustainable growth in the housing market.

Economic Periods of Significance

2011 Through 2019

During the period from 2011 to 2019, the Albuquerque, NM metropolitan area experienced a significant economic expansion, characterized by steady job growth and increased economic activity. The nonfarm payrolls in the metropolitan area increased from 386,633 jobs in 2016 to 398,742 jobs in 2019, reflecting a robust economic environment. This period of expansion was marked by an average annual increase of approximately 3,037 jobs, or 0.8 percent, contributing to a total growth of 12,109 jobs over the nine-year period. The expansion was driven by a combination of factors, including growth in key sectors and favorable economic conditions.

The service-providing sectors played a pivotal role in the economic expansion of the Albuquerque metropolitan area during this period. These sectors, which include education and health services, professional and business services, and leisure and hospitality, were instrumental in driving job growth. The education and health services sector, in particular, benefited from increased demand for healthcare services and educational institutions, contributing significantly to the overall employment gains. The professional and business services sector also experienced growth, supported by an expanding business environment and increased demand for professional services.

In addition to the service-providing sectors, the goods-producing sectors contributed to the economic expansion in the Albuquerque metropolitan area. Manufacturing and construction activities saw a resurgence during this period, supported by increased investment and development projects. The construction sector, in particular, benefited from a rise in residential and commercial construction projects, which created additional employment opportunities and stimulated economic growth. The manufacturing sector also experienced growth, driven by increased production and demand for locally manufactured goods.

The economic expansion in the Albuquerque metropolitan area during this period was further supported by favorable demographic trends, including net in-migration and population growth. These trends contributed to increased demand for housing, goods, and services, further stimulating economic activity. The combination of job growth, sectoral expansion, and demographic trends created a positive economic environment that supported sustained growth in the metropolitan area.

Overall, the period from 2011 to 2019 marked a significant phase of economic expansion for the Albuquerque metropolitan area. The steady increase in nonfarm payrolls, driven by growth in both service-providing and goods-producing sectors, underscored the resilience and dynamism of the local economy. This expansion laid the foundation for continued economic development and positioned the metropolitan area for future growth.

2020

The Albuquerque, NM metropolitan area experienced a significant contraction in nonfarm payrolls during the 2020 pandemic. Nonfarm payrolls decreased to 376,008 jobs in 2020, down from 398,742 jobs in 2019, representing a decline of 22,734 jobs, or 5.7 percent. This marked a notable reversal from the steady growth observed in previous years, where nonfarm payrolls had increased consistently from 2016 through 2019. The pandemic-induced economic downturn affected various sectors differently, with some experiencing more severe impacts than others.

The leisure and hospitality sector was the hardest hit during the pandemic in the Albuquerque metropolitan area. This sector, which relies heavily on in-person interactions and travel, faced significant challenges due to restrictions and reduced consumer confidence. The wholesale and retail trade sectors also experienced weaknesses, as consumer spending patterns shifted and physical retail locations faced temporary closures or reduced operations. In contrast, the transportation and utilities sector often benefited from the increased reliance on e-commerce, as demand for delivery services and logistics support surged during the pandemic. This sectoral reallocation highlights the uneven impact of the pandemic across different parts of the economy.

In the aftermath of the initial pandemic contraction, the Albuquerque metropolitan area began to recover. By 2021, nonfarm payrolls had rebounded to 387,625 jobs, an increase of 11,617 jobs, or 3.1 percent, from the previous year. This recovery was supported by the gradual reopening of the economy and the adaptation of businesses to new operating conditions. The service-providing sectors, in particular, saw improvements as consumer confidence returned and restrictions were eased. However, the pace of recovery varied across sectors, with some continuing to face challenges in returning to pre-pandemic levels of activity.

The recovery continued in subsequent years, with nonfarm payrolls reaching 405,067 jobs in 2022 and 415,400 jobs in 2023. This upward trend reflects the resilience of the Albuquerque metropolitan area economy and its ability to adapt to changing conditions. The forecast period is expected to see continued growth, albeit at a more moderate pace, as the economy stabilizes and adjusts to the post-pandemic landscape. The experience of the 2020 pandemic contraction underscores the importance of sectoral diversification and adaptability in mitigating the impacts of economic shocks.

2021 Through 2023

During the period from 2021 to 2023, the Albuquerque, NM metropolitan area experienced a significant recovery in nonfarm payrolls, following a decline in 2020. Nonfarm payrolls increased from an average of 387,625 jobs in 2021 to 415,400 jobs in 2023, reflecting an average annual gain of approximately 13,888 jobs, or 3.5 percent. This recovery was marked by a resurgence in employment across various sectors, contributing to the overall economic revitalization of the area.

The service-providing sectors played a pivotal role in driving the recovery during this period. These sectors, which include education and health services, professional and business services, and leisure and hospitality, were instrumental in the employment gains observed. The education and health services sector, in particular, benefited from increased demand for healthcare services and educational support, leading to job creation and expansion. Similarly, the professional and business services sector saw growth as businesses adapted to new market conditions and expanded their operations.

Leisure and hospitality, a sector severely impacted by the pandemic, also showed signs of recovery as restrictions eased and consumer confidence improved. The reopening of local attractions, restaurants, and hotels contributed to job growth in this sector, supporting the overall employment gains in the metropolitan area. This resurgence in leisure and hospitality employment not only provided jobs but also stimulated economic activity through increased consumer spending.

The recovery in the Albuquerque metropolitan area was further supported by net in-migration, as individuals and families relocated to the region, attracted by its relatively affordable cost of living and quality of life. This population growth contributed to increased demand for goods and services, further bolstering the local economy. The combination of job growth and population influx created a positive feedback loop, reinforcing the recovery momentum.

In addition to sectoral growth, the recovery period was characterized by strategic investments and expansions by local businesses and institutions. These developments included the expansion of healthcare facilities and the establishment of new business ventures, which provided additional employment opportunities and supported the area's economic diversification. The commitment to fostering a resilient and diversified economy was evident in the strategic initiatives undertaken during this period.

Overall, the recovery from 2021 to 2023 in the Albuquerque metropolitan area was marked by robust job growth, sectoral expansion, and increased economic activity. The collaborative efforts of businesses, government, and the community played a crucial role in navigating the challenges of the pandemic and setting the stage for sustained economic growth. As the area continues to build on this recovery, the focus remains on fostering a resilient and inclusive economy that can withstand future challenges.

Forecast

Nonfarm payrolls in the Albuquerque, NM metropolitan area are expected to grow at an annual rate of 1.2 percent over the next three years. This growth is anticipated to be driven primarily by expansions in the service-providing sectors, which have historically been a significant contributor to the local economy. The professional and business services sector, in particular, is likely to see robust growth due to ongoing investments in technology and innovation. Additionally, the education and health services sector is expected to continue its upward trajectory, supported by the increasing demand for healthcare services and educational institutions in the region. The leisure and hospitality sector may also experience growth as tourism and local recreational activities recover and expand.

Despite the positive outlook, several factors may pose challenges to the economic forecast for the Albuquerque metropolitan area. Elevated interest rates could dampen business investments and consumer spending, potentially slowing economic momentum. Additionally, demographic aging may impact labor force participation rates, leading to a tighter labor market and potential skill shortages in certain industries. Furthermore, any moderation in net in-migration could affect housing demand and overall economic growth. These factors, combined with broader national economic uncertainties, may create headwinds for sustained economic expansion during the forecast period.

Population and Households

Population Trends

The population of the Albuquerque, NM metropolitan area experienced a steady increase from 2010 to 2020. During this decade, the population grew from 917,692 in 2020, reflecting an average annual increase of approximately 1,707 people. This growth represents an average annual percent increase of 0.19 percent. The consistent rise in population during this period can be attributed to various factors, including economic development and the area's appeal as a residential location.

Following 2020, the population growth trend in the Albuquerque metropolitan area showed signs of acceleration. From 2020 to 2025, the population increased from 917,692 to 925,279, indicating an average annual addition of approximately 1,717 people. This represents a slightly higher annual growth rate of 0.19 percent compared to the previous decade. The most recent annual increase, from 2024 to 2025, was 651 people, or 0.07 percent, suggesting a continuation of this upward trend.

As of 2025, the current population of the Albuquerque metropolitan area is 925,279. Looking ahead, a trend extrapolation suggests that the population will reach 929,439 by 2028. This forecast indicates an average annual increase of 1,387 people, or 0.15 percent, during the forecast period. The projected growth reflects ongoing demographic trends and the area's potential to attract new residents.

The population growth in Albuquerque may be driven by several factors, including net in-migration and the area's attractiveness to retirees and remote workers. The metropolitan area's quality of life, cost of living, and economic opportunities could contribute to its appeal as a destination for individuals and families seeking a favorable living environment. Additionally, the rise of remote work may have facilitated relocation to areas like Albuquerque, where residents can enjoy a balance of urban amenities and natural surroundings.

Table 3. Population and Household Quick Facts — Albuquerque HMA

Forecast values extend the most recent vintage of Census Population Estimates and ACS over a 3-year horizon.

Components of Population Change

The population of the Albuquerque, NM metropolitan area has experienced consistent growth in recent years, driven primarily by two factors: natural increase and net migration. In many sunbelt metropolitan areas, including Albuquerque, an aging population often results in a net natural decline, where deaths outnumber births. Consequently, population growth in these regions is largely attributed to net in-migration. Between 2020 and 2025, the population of the Albuquerque metropolitan area increased from 917,692 to 925,279, reflecting a steady influx of new residents.

The age composition of the Albuquerque metropolitan area suggests that net migration plays a significant role in its population growth. The presence of a substantial number of retirees and older adults typically leads to a lower natural increase, as the birth rate tends to decline while the death rate rises. This demographic trend indicates that the majority of the population increase is likely due to people moving into the area rather than natural population growth. The metropolitan area has seen a population increase of 8,617 people from the prior year, highlighting the importance of migration in sustaining its growth.

The implications of this population growth for household formation and housing demand are significant. As more people move into the Albuquerque metropolitan area, the demand for housing is likely to increase, leading to potential challenges in housing supply and affordability. The increase in population can drive the need for additional housing units, impacting the local real estate market and potentially leading to increased construction activity. Furthermore, the influx of new residents may stimulate demand for various services and amenities, contributing to economic growth and development in the region. As the metropolitan area continues to grow, addressing housing needs will be crucial to accommodating the expanding population and supporting sustainable development.

Migration Trends

Net in-migration has been the primary driver of population growth in the Albuquerque, NM metropolitan area, a trend commonly observed in many growing Sunbelt metros. The region's appeal is bolstered by its favorable climate, relatively affordable housing market, and diverse cultural offerings, which continue to attract new residents. The majority of the population growth in the area can be attributed to net in-migration, as opposed to natural increase, indicating that more people are moving into the area than leaving or being born there. This trend is consistent with the broader patterns seen in similar metropolitan areas across the Sunbelt, where economic opportunities and lifestyle benefits draw individuals and families from other parts of the country.

While specific data on migration flows is not available, it is likely that the Albuquerque metropolitan area receives a significant number of new residents from nearby metropolitan areas and major coastal cities. These areas often include larger cities in the state of Texas and California, where housing costs are higher and residents may seek more affordable living conditions. Additionally, retirees from colder northern states may be drawn to Albuquerque's milder climate and lower cost of living. The influx of new residents from these regions contributes to the area's demographic diversity and economic vitality, even though precise figures are not available.

Price-disparity-driven migration is a notable factor influencing the movement of people to the Albuquerque metropolitan area. Individuals and families relocating from higher-cost metropolitan areas are often motivated by the opportunity to purchase more affordable housing and enjoy a lower cost of living. This trend is particularly evident among those moving from coastal cities, where housing prices have escalated significantly in recent years. The relative affordability of the Albuquerque housing market makes it an attractive destination for those seeking to maximize their purchasing power while maintaining a desirable quality of life. This dynamic is expected to continue influencing migration patterns during the forecast period.

Household Trends

The Albuquerque, NM metropolitan area experienced an increase in the number of households, reaching 379,364 households, up from 375,831 households during the previous year. This represents an absolute change of 3,533 households, or a 0.94 percent increase. The growth in the number of households is a significant indicator of the area's economic vitality and attractiveness as a place to live. However, without specific data on population growth, it is not possible to determine if household growth is outpacing population growth. The increase in households suggests a steady demand for housing and related services in the metropolitan area.

The homeownership rate in the Albuquerque metropolitan area is currently 68 percent. This rate is indicative of a stable housing market with a significant proportion of owner-occupied units. A higher homeownership rate often correlates with a larger population of retirees and mature families, who typically prefer the stability and investment potential of homeownership. The current rate reflects a mature housing market that may be less volatile than markets with lower homeownership rates. This stability can be attractive to both current residents and potential new residents considering relocation to the area.

While specific forecasts for household growth over the next three years are not provided, the current trend suggests continued growth in the number of households. The trend extrapolation indicates that the metropolitan area is likely to see a steady increase in households, driven by factors such as economic opportunities, quality of life, and housing affordability. This growth trend is expected to continue during the forecast period, contributing to the overall economic development and vibrancy of the Albuquerque metropolitan area.

Household Composition

The Albuquerque, NM metropolitan area currently comprises approximately 379,364 households. The homeownership rate in the area is 68 percent, indicating a predominance of owner-occupied units over renter-occupied ones. This suggests a household composition that leans towards family households, as ownership is often associated with family stability and long-term residence. Non-family households, which typically include individuals living alone or with non-relatives, are likely to be more prevalent among the renter-occupied segment. The balance between family and non-family households is a critical factor in understanding the housing market dynamics of the region.

The aging population in the Albuquerque metropolitan area has significant implications for household-size trends. As the population ages, there is a tendency for household sizes to decrease, primarily due to the transition of older adults to smaller living arrangements after children move out or due to the loss of a spouse. This demographic shift results in a higher proportion of smaller households, often consisting of one or two persons. The trend towards smaller household sizes is expected to continue, influencing the demand for housing types that cater to these smaller units.

This shift in household composition translates into a specific demand for housing unit sizes. There is an increasing preference for two-bedroom owner-occupied single-family homes or townhomes, which accommodate smaller households while still offering ownership benefits. Conversely, there is a reduced demand for larger homes with four or more bedrooms, which are typically sought by larger family households. The housing market in Albuquerque is likely to see a continued emphasis on developing housing that meets the needs of smaller households, reflecting the broader demographic trends in the area.

Forecast

The population of the metropolitan area is currently estimated at 925,279. By the year 2028, the population is forecast to increase modestly to 929,439. This represents a growth of 4,160 people over the forecast period. The projected growth reflects a relatively stable demographic trend in the metropolitan area, with an average annual increase of approximately 0.1 percent.

The modest population growth anticipated during the forecast period is indicative of a balanced economic environment in the metropolitan area. Factors contributing to this stability may include consistent employment opportunities and a steady rate of net in-migration. The metropolitan area continues to attract residents due to its economic prospects and quality of life, although the growth rate is expected to remain modest.

While the forecast does not provide specific household growth figures, the population increase suggests a potential rise in housing demand. This could lead to a gradual expansion in the housing market, with implications for residential construction and real estate development. The metropolitan area may experience a need for additional housing units to accommodate the growing population.

Overall, the forecast period is expected to see a continuation of current demographic trends, with a slight increase in population. The metropolitan area is likely to maintain its appeal as a destination for new residents, supported by its economic stability and quality of life. The modest population growth projected through 2028 underscores the area's steady, albeit slow, expansion.

Home Sales Market

Current Conditions

The home sales market in the Albuquerque, NM metropolitan area is currently slightly tight. The sales vacancy rate is not specified, but the months of inventory is 3.9 months. This level of inventory indicates a market that is leaning towards sellers, as a balanced market typically has about 6 months of inventory. During the 12 months ending February 2026, the total number of home sales was 8,778, down from the previous year by 7.5 percent. This decline in sales suggests a cooling in the market, which may be attributed to various economic factors.

Total home sales in the Albuquerque metropolitan area decreased to 8,778 during the 12 months ending February 2026, down from the previous year. This represents a decline of 7.5 percent. The reduction in sales activity is likely influenced by elevated mortgage rates, which can deter potential buyers due to increased borrowing costs. Additionally, broader economic conditions, such as changes in employment or consumer confidence, may also contribute to the observed decrease in home sales.

The current mortgage rate is not specified, but it is implied that rates have risen from recent lows. Higher mortgage rates generally reduce affordability for potential homebuyers, as they increase the monthly cost of financing a home purchase. This can lead to a slowdown in the housing market, as fewer buyers are able to qualify for loans or are willing to purchase homes at higher interest rates. The impact of these rates on the Albuquerque market is reflected in the decreased number of home sales.

The average price of new homes in the Albuquerque metropolitan area is $443,783, which is a decrease of 6.7 percent from the previous year. Meanwhile, the average price of existing homes is $370,466, showing a slight decline of 0.04 percent. The decrease in new home prices may indicate builders are adjusting prices to stimulate demand in response to the current market conditions. Conversely, the relatively stable prices of existing homes suggest that demand remains steady, despite the overall decline in sales activity.

Table 5. Home Sales Quick Facts — Albuquerque HMA

Resale Home Sales

The Albuquerque, NM metropolitan area experienced a notable increase in existing home sales from 2013 through 2019. In 2013, there were 9,913 existing home sales, which marked the beginning of a recovery period following the Great Recession. This upward trend continued over the next several years, with sales reaching 11,214 in 2015 and further increasing to 12,247 in 2016. The growth persisted, culminating in 13,035 sales in 2017. Although there was a slight decline to 11,979 sales in 2018, the market rebounded in 2019 with 12,136 existing home sales. This period of growth was characterized by a strengthening economy and improving consumer confidence, contributing to the increased demand for housing in the metropolitan area.

The years 2020 and 2021 marked a significant boom in the Albuquerque housing market, driven by historically low mortgage interest rates. In 2020, existing home sales rose to 12,856, and the momentum continued into 2021, reaching a peak of 13,466 sales. This period was characterized by heightened buyer activity as lower borrowing costs made homeownership more accessible. The increased demand during these years was also fueled by shifts in housing preferences, with more individuals seeking larger living spaces due to remote work arrangements.

Following the peak in 2021, the Albuquerque housing market experienced a slowdown in existing home sales, beginning in 2022. The number of sales decreased to 10,191, down from the previous year's peak. This decline continued into 2023, with sales further dropping to 7,282, representing a 28.5 percent decrease from 2022. The trend of declining sales persisted into 2024, with 7,678 existing home sales, which was a 5.4 percent increase from the previous year but still significantly lower than the peak levels observed in 2021. The slowdown in sales can be attributed to rising mortgage interest rates, which have tempered buyer demand and contributed to a more cautious approach in the housing market.

New Home Sales

The Albuquerque, NM metropolitan area experienced a period of growth in new home sales from 2018 through 2019. In 2018, there were 1,022 new home sales, which increased to 1,102 sales in 2019. This represents an increase of 80 sales, or 7.8 percent, indicating a strengthening demand for new homes in the area during this period. The growth in new home sales during these years reflects a broader trend of economic expansion and population growth in the metropolitan area, contributing to increased housing demand.

The onset of the COVID-19 pandemic in 2020 marked a significant surge in new home sales in the Albuquerque metropolitan area. In 2020, new home sales rose to 1,337, up from 1,102 in 2019, representing an increase of 235 sales, or 21.3 percent. This surge can be attributed to factors such as low mortgage interest rates and a shift in housing preferences during the pandemic. The peak year for new home sales during this period was 2020, as demand for housing remained robust despite the challenges posed by the pandemic. However, in 2021, new home sales decreased to 1,091, down from 1,337 in 2020, a decline of 246 sales, or 18.4 percent. In 2022, sales further decreased to 1,062, down from 1,091 in 2021, a decline of 29 sales, or 2.7 percent.

In 2023, the Albuquerque metropolitan area saw a resurgence in new home sales, with a total of 1,339 sales, up from 1,062 in 2022. This increase of 277 sales, or 26.1 percent, indicates a renewed interest in new home purchases. However, the trajectory shifted in 2024, with new home sales declining to 1,063, down from 1,339 in 2023, a decrease of 276 sales, or 20.6 percent. The downward trend continued into 2025, with new home sales further decreasing to 981, down from 1,063 in 2024, a decline of 82 sales, or 7.7 percent. During the first two months of 2026, there were 130 new home sales, suggesting a continued downward trend in the market. This recent trajectory reflects changing market conditions and potential shifts in buyer preferences or economic factors affecting the housing market.

Home-sales totals — Albuquerque HMA, annual

Resale Home Sales Prices

During the period from 2020 to 2022, the Albuquerque, NM metropolitan area experienced a significant increase in resale home prices. In 2020, the average resale home price was $260,753, which marked a substantial rise from the previous year. By 2021, the average price had increased to $301,423, representing a 15.6 percent increase from 2020. The upward trend continued into 2022, with the average resale home price reaching $335,304, an increase of 11.2 percent from 2021. This rapid rise in home prices during these years can be attributed to heightened demand and limited supply, which were prevalent factors in the housing market during the early years of the COVID-19 pandemic.

In 2023, the pace of price increases began to moderate. The average resale home price in the Albuquerque metropolitan area rose to $355,360, up from $335,304 in 2022, reflecting a 6.0 percent increase. This moderation in price growth continued into 2024, with the average price reaching $367,770, a 3.5 percent increase from the previous year. The current year, 2025, shows a further deceleration in price growth, with the average resale home price at $370,056, representing a modest 0.6 percent increase from 2024. This trend indicates a stabilization in the housing market as supply and demand dynamics begin to balance.

Comparing the recent trends to the pre-pandemic period, the average annual pace of home price increases was typically around 5 to 6 percent. For instance, from 2013 to 2019, the average resale home price increased from $185,250 to $233,734, reflecting a steady annual growth rate. The rapid price increases observed during the pandemic years were significantly higher than the historical average, highlighting the extraordinary market conditions during that time. The current moderation in price growth suggests a return to more typical market conditions, aligning closer to the pre-pandemic average annual pace.

New Home Sales Prices

The trajectory of new home prices in the Albuquerque, NM metropolitan area over the past decade has shown significant fluctuations. In 2018, the average price of a new home was $328,815. This figure decreased slightly in 2019 to $325,351, marking a decline of approximately 1 percent. However, in 2020, the average price increased to $336,621, representing a 3.5 percent rise from the previous year. The upward trend continued in 2021, with the average price reaching $386,329, an increase of 14.8 percent from 2020. The most substantial growth occurred in 2022, when the average price surged to $452,281, up 17.1 percent from 2021. This period of rapid price escalation reflects broader national trends of increased demand and limited supply in the housing market.

In the recent two-year arc, the average price of new homes in the Albuquerque metropolitan area has experienced a slight decline followed by a modest increase. In 2023, the average price decreased to $425,762, down 5.9 percent from the previous year. This decline may have been influenced by builder incentives aimed at stimulating sales amidst changing market conditions. However, in 2024, the average price rose to $440,468, marking a 3.5 percent increase from 2023. This recent uptick could be attributed to a shift in the mix of homes sold, with a possible increase in higher-end properties contributing to the rise in average prices. As of early 2026, the average price stands at $449,910, indicating a continuation of this upward trend.

Average sale price — Albuquerque HMA, annual

Affordability

The affordability of home sales in the Albuquerque, NM metropolitan area is influenced by the current price levels of existing homes. The average price of an existing home is approximately $370,466, which represents a decrease of 4.5 percent from the previous year. Although the specific mortgage rate is not provided, the prevailing rates in the nation have generally been on the higher side, which could imply a significant monthly cost for potential homebuyers. This scenario suggests that the affordability of purchasing an existing home may be challenging for many households, particularly if mortgage rates remain elevated.

In the Albuquerque metropolitan area, homeowners face several financial pressures that can impact affordability. Rising homeowners-insurance premiums are a concern, as they add to the overall cost of homeownership. Additionally, homeowners association (HOA) fees and community development district (CDD) fees can further strain household budgets. Property taxes also contribute to the financial burden, as they are a recurring expense that homeowners must account for. These factors collectively increase the cost of owning a home, making it more difficult for residents to manage their housing expenses effectively.

First-time homebuyers in the Albuquerque metropolitan area may find it particularly challenging to enter the housing market under current conditions. The combination of high home prices and additional costs such as insurance and taxes can be prohibitive. However, if mortgage rates were to ease over the forecast period, it could provide some relief to potential buyers by reducing monthly mortgage payments. This change could improve affordability and potentially stimulate increased activity in the housing market, allowing more first-time buyers to achieve homeownership.

Distressed Sales and Delinquent Mortgages

Distressed sales in the nation experienced significant fluctuations over the past decade. Following the Great Recession, from 2010 to 2013, distressed sales were notably high as the housing market grappled with the aftermath of widespread economic challenges. As the economy gradually recovered, the volume of distressed sales declined steadily throughout the 2010s. This trend continued until the onset of the COVID-19 pandemic, during which government interventions, such as mortgage forbearance programs, contributed to a trough in distressed sales from 2020 to 2022. However, since 2023, there has been a modest uptick in distressed sales as these temporary relief measures have phased out and the market adjusts to new economic conditions.

In the Albuquerque, NM metropolitan area, the mortgage-delinquency rate is likely near historic lows. This stability is largely supported by the accumulated home-price equity that homeowners have gained over recent years. The increase in home equity acts as a buffer, preventing a significant rise in delinquencies despite broader economic fluctuations. Although specific MSA-level delinquency data is not yet integrated into our analysis, the overall trend suggests that the Albuquerque housing market remains resilient. The accumulated equity provides homeowners with greater financial security, reducing the likelihood of distressed sales in the near term.

Geographic Submarkets

The Albuquerque, NM Housing Market Area (HMA) is centered around the principal city of Albuquerque, which serves as the economic and cultural hub. The metropolitan area typically includes a mix of submarkets, each with distinct characteristics. The core city of Albuquerque often features a higher concentration of multifamily housing units and a diverse range of housing options, catering to a broad spectrum of residents. In contrast, the surrounding submarkets may include both high-amenity areas and more affordable inland or exurban regions. High-amenity submarkets, often characterized by proximity to natural attractions or desirable urban amenities, tend to have higher price levels and a greater prevalence of single-family homes. Inland and exurban submarkets, which are typically more affordable, may offer larger lots and a greater proportion of new construction homes.

Looking ahead, the differentiation among submarkets in the Albuquerque HMA is expected to continue. Submarkets with more available land for development are likely to absorb a larger share of new construction activity during the forecast period. These areas may experience an increase in housing supply, potentially moderating price growth relative to more established submarkets. Conversely, high-amenity submarkets, which are often more constrained in terms of available land, may see stronger price appreciation due to limited supply and sustained demand. The dynamics of supply and demand in these submarkets will play a crucial role in shaping the overall housing market trends in the metropolitan area.

The "Location Fundamentals" section of this report will provide further insights into the characteristics of individual submarkets within the Albuquerque HMA. Factors such as crime rates, quality of schools, exposure to natural hazards, and accessibility to employment centers will be examined to offer a comprehensive understanding of the desirability and livability of each submarket. These location fundamentals are critical in influencing housing demand and price trends, as they directly impact the attractiveness of different areas within the metropolitan area. Understanding these factors will be essential for stakeholders looking to make informed decisions in the Albuquerque housing market.

Homebuyer Profile

The Albuquerque, NM metropolitan area, like many sunbelt metros, attracts a diverse range of homebuyers, particularly those seeking a more favorable climate and lower cost of living. The region is appealing to retirees and move-down buyers from higher-cost metropolitan areas, who are often looking to downsize and capitalize on the equity from their previous homes. Additionally, families returning to the area are drawn by the combination of economic opportunities and lifestyle benefits, including outdoor recreational activities and cultural amenities. The aging population in the region contributes to a steady demand for housing, as these demographic groups seek homes that cater to their evolving needs.

The share of cash buyers in the Albuquerque metropolitan area is typically elevated, a trend common in sunbelt markets. This prevalence of cash transactions can insulate the housing market from fluctuations in mortgage interest rates, as cash buyers are less sensitive to these changes compared to those relying on financing. Consequently, the market may experience less volatility in response to shifts in mortgage rates, maintaining a steadier pace of home sales. However, this dynamic can also create challenges for first-time homebuyers and those dependent on financing, as they may face increased competition from cash buyers.

Given the composition of the market, the share of Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans may be influenced by the presence of younger families and veterans returning to the area. These loan programs offer more accessible financing options for buyers who may not have substantial down payments or who are seeking to leverage their veteran benefits. The availability and utilization of FHA and VA loans can play a crucial role in supporting homeownership among these groups, contributing to the overall diversity and resilience of the housing market in Albuquerque.

Sales Construction

During the early 2010s, the pace of residential construction in the Albuquerque, NM metropolitan area was relatively subdued. In 2016, the number of single-family homes permitted totaled 1,927 units, while permits for multifamily units in buildings with two to four units and those with five or more units were 34 and 500, respectively. The following year, 2017, saw a slight increase in single-family home permits to 1,996 units, although permits for multifamily units with two to four units decreased significantly to 9 units, and those for five or more units fell to 251. By 2018, single-family home permitting had increased further to 2,222 units, while multifamily permits for two to four units rose to 25, and those for five or more units decreased to 134. This period was characterized by modest fluctuations in construction activity, with a general trend of increasing single-family home permits.

The period from 2020 to 2022 marked a significant surge in residential construction permitting in the Albuquerque metropolitan area, reflecting a post-pandemic pattern of increased housing demand. In 2020, single-family home permits were recorded at 1,925 units, with multifamily permits for two to four units at 21 and those for five or more units at 68. The year 2021 saw a substantial increase in permitting activity, with single-family home permits rising to 2,535 units and multifamily permits for five or more units surging to 1,410 units, while permits for two to four units increased to 76. In 2022, single-family home permits slightly decreased to 2,002 units, and multifamily permits for five or more units decreased to 1,048, while permits for two to four units dropped to 7. This surge in permitting activity during these years likely reflects a response to increased housing demand and a shift in market dynamics following the pandemic.

In the latest two years, 2024 and 2025, the permitting activity in the Albuquerque metropolitan area has shown signs of cooling. In 2024, single-family home permits were recorded at 2,085 units, with multifamily permits for two to four units at 50 and those for five or more units at 762. By 2025, single-family home permits decreased to 1,810 units, while multifamily permits for two to four units were 34, and those for five or more units increased to 984. This recent trend suggests a stabilization in the housing market, with a slight decline in single-family home construction and a mixed pattern in multifamily permitting. The increase in permits for larger multifamily projects in 2025 may indicate a shift in developer focus towards meeting demand for rental housing or addressing affordability concerns in the metropolitan area.

Annual sales permitting — Albuquerque HMA

Source: U.S. Census Bureau Building Permits Survey, full-year county files.

Forecast

The Albuquerque, NM metropolitan area is projected to experience a demand for 7,609 home sales during the next three years. This demand reflects the ongoing growth and economic development within the region. The housing market in Albuquerque is characterized by a steady increase in population and employment opportunities, which contribute to the rising demand for housing. The metropolitan area has been attracting new residents due to its relatively affordable housing market compared to other regions in the state of New Mexico. This influx of new residents is expected to sustain the demand for home sales throughout the forecast period.

Currently, there are 1,533 units under construction in the Albuquerque metropolitan area. These units will help to meet a portion of the projected demand for home sales. The construction activity in the region indicates a positive response from developers to the increasing demand for housing. The completion of these units will provide additional housing options for potential homebuyers, thereby alleviating some of the pressure on the existing housing inventory. The ongoing construction efforts are crucial in maintaining a balanced housing market in the metropolitan area.

The housing market in Albuquerque has shown resilience in recent years, with steady growth in home sales and prices. The demand for housing is driven by several factors, including job growth in key sectors such as healthcare, education, and technology. These sectors have been instrumental in attracting new residents to the area, further fueling the demand for housing. The metropolitan area has also benefited from favorable mortgage rates, which have made homeownership more accessible to a larger segment of the population. This trend is expected to continue during the forecast period, supporting the projected demand for home sales.

In addition to the units currently under construction, the Albuquerque metropolitan area may see further development activity as builders respond to the sustained demand for housing. The availability of land for new construction and the presence of a skilled labor force are likely to support ongoing development efforts. As the metropolitan area continues to grow, it is anticipated that additional housing projects will be initiated to accommodate the increasing population. This proactive approach to housing development will be essential in ensuring that the supply of homes keeps pace with demand.

The projected demand for 7,609 home sales over the next three years underscores the importance of continued investment in housing infrastructure in the Albuquerque metropolitan area. The combination of new construction and existing inventory will play a critical role in meeting the needs of homebuyers. As the region continues to attract new residents and businesses, the housing market is expected to remain robust. The ongoing efforts to expand the housing supply will be vital in supporting the economic growth and development of the Albuquerque metropolitan area.

Table 6. Demand for New Sales Units — Albuquerque HMA, 3-Year Forecast

Rental Market

Current Conditions and Historic Trends

The rental housing market in the Albuquerque, NM metropolitan area is currently slightly soft. As of February 2026, the apartment vacancy rate is 7.04 percent, up from 6.34 percent a year earlier. This represents a year-over-year increase of 0.70 percentage points. The rise in vacancy rates indicates a loosening of the rental market conditions compared to the previous year.

The average rent in the metropolitan area is $1,190, reflecting a year-over-year decrease of 2.02 percent. Over the past three years, the average rent has shown fluctuations, with a general upward trend until mid-2024, followed by a decline. In March 2023, the average rent was $1,176, and it peaked at $1,243 in August 2024 before beginning to decrease. This recent decline in average rent suggests a shift in market dynamics, potentially influenced by increased supply or changes in demand.

Historically, the rental market in Albuquerque experienced tightening conditions from 2010 through 2021. During this period, vacancy rates generally decreased as demand for rental housing increased. However, since 2022, the market has softened, with vacancy rates rising as new apartment deliveries have eased the pressure on the market. This trend aligns with broader national patterns observed in the post-pandemic period, where increased housing supply has contributed to higher vacancy rates.

The vacancy rate data reveals specific inflection points over the past few years. Notably, the vacancy rate began to rise significantly in early 2025, reaching 7.13 percent in May 2025. This increase continued through the year, peaking at 7.17 percent in August 2025, before stabilizing around 7.04 percent by February 2026. These inflection points suggest periods of increased housing supply or shifts in tenant demand, contributing to the current slightly soft market conditions.

Table 7. Rental and Apartment Quick Facts — Albuquerque HMA

Rental Construction

Rental construction activity in the Albuquerque, NM metropolitan area during the early 2010s was subdued, a trend observed in many regions following the Great Recession. The number of multifamily units permitted in structures with five or more units was relatively low, with 500 units permitted in 2016. This level of activity reflected a cautious approach by developers in response to the economic conditions of the time, as the market was still recovering from the downturn. The subdued levels of construction during this period were indicative of a broader hesitancy in the housing market, as developers and investors remained wary of overbuilding in a still-recovering economy.

From 2018 through 2022, the Albuquerque metropolitan area experienced a notable cycle in multifamily permitting activity. The number of units permitted in 2018 was 134, which marked a low point in the cycle. However, activity increased significantly in the following years, reaching a peak in 2021 with 1,410 units permitted. This surge in construction was driven by a combination of factors, including increased demand for rental housing and favorable economic conditions. However, the period also faced challenges, particularly during 2020 and 2021, when labor and material constraints impacted the construction industry. Despite these challenges, the number of units permitted in 2022 remained high at 1,048, indicating sustained interest in multifamily development.

In the most recent years, multifamily permitting activity in the Albuquerque metropolitan area has shown signs of cooling. In 2023, the number of units permitted decreased to 910, down from 1,048 in 2022. This trend continued into 2024, with 762 units permitted. The decline in permitting activity can be attributed to rising vacancy rates, which have tempered the demand for new rental construction. As the market adjusts to these conditions, developers have become more cautious, leading to a moderation in the pace of new multifamily projects. Looking ahead to 2025, the number of units permitted is expected to increase slightly to 984, suggesting a potential stabilization in the market as developers respond to evolving demand dynamics.

Annual rental permitting — Albuquerque HMA

Source: U.S. Census Bureau Building Permits Survey, full-year county files.

Recent Apartment Developments

• Downtowner — Located in Downtown Albuquerque, this 191-unit complex will provide affordable housing.
• San Mateo Tower — Situated in Albuquerque, this project includes 110 units and has recently broken ground.
• Markana Uptown — Located in Albuquerque, this development features 192 units.
• Cielo — Situated in Santa Fe, this complex offers 252 units.
• Markana De Santa Fe — Located in Santa Fe, this project includes 180 units.
• Broadstone Nob Hill — Located in Albuquerque, this development features 102 units.

Rent Burden and Affordability

At the current average rent of $1,190 in the Albuquerque, NM metropolitan area, a household would need a monthly gross income of approximately $3,966 to remain under the HUD 30-percent rent-to-income threshold. This translates to an annual income of about $47,594. Given the economic conditions in the area, a significant portion of households may not meet this income requirement, potentially leading to a higher incidence of rent burden among residents. The affordability challenge is particularly pronounced for lower-income households, which may struggle to allocate a substantial portion of their income to housing costs.

The average rent in Albuquerque decreased by 2.02 percent during the past year, which may provide some relief to renters. However, the tension between rent levels, the vacancy rate, and local wage growth remains a concern. In metropolitan areas with a strong tourism sector, such as Albuquerque, many renter households may still experience rent burden despite the recent decline in average rent. The interplay between these factors can influence the overall affordability landscape, as stagnant or slow wage growth may not keep pace with housing costs, exacerbating the financial strain on renters.

Rental subsidies play a crucial role in alleviating rent burden for low-income households in the Albuquerque metropolitan area. Programs such as Housing Choice Vouchers, Low-Income Housing Tax Credits (LIHTC), and USDA Section 515 rural housing loans provide essential support to eligible families, helping to bridge the gap between income and housing costs. These subsidies are vital in maintaining housing stability and affordability for vulnerable populations, ensuring that they can secure safe and adequate housing without exceeding the 30-percent rent-to-income threshold. The continued availability and expansion of these programs are critical to addressing the affordability challenges faced by many residents in the area.

Rental Submarkets

The rental market in the Albuquerque, NM metropolitan area exhibits a typical pattern observed in many regions, where rental rates are generally higher in coastal and core-city submarkets compared to interior and exurban areas. In Albuquerque, the principal city submarket tends to have higher rental rates due to its proximity to employment centers, amenities, and transportation networks. Conversely, the interior and exurban submarkets, which are further from the city center, typically experience lower rental rates. These areas often have higher vacancy rates as well, reflecting a greater availability of rental units and potentially less demand compared to the more centrally located submarkets.

In recent years, new multifamily supply in the Albuquerque metropolitan area has been concentrated primarily in the principal city of Albuquerque. This concentration of new development has contributed to changes in vacancy rates across the submarkets. The influx of new units in the core-city submarket has helped to moderate vacancy rates, as increased supply has been met with steady demand. However, in the interior and exurban submarkets, the addition of new multifamily units has led to higher vacancy rates, as these areas may not have experienced the same level of demand growth as the principal city.

Looking ahead to the next 18 to 24 months, the rental market in the Albuquerque metropolitan area is expected to continue experiencing trends similar to those observed in recent years. The principal city submarket is likely to maintain relatively stable vacancy rates, supported by ongoing demand for centrally located rental housing. In contrast, the interior and exurban submarkets may continue to face challenges with higher vacancy rates unless there is a significant increase in demand or a slowdown in new supply. Overall, the rental market dynamics in Albuquerque will be influenced by factors such as economic conditions, population growth, and housing affordability during the forecast period.

HUD Fair Market Rents Context

Fair Market Rents (FMRs) are established at the 40th percentile of gross rents for standard-quality units within a given area and are utilized primarily in the Housing Choice Voucher program to determine payment standards. For the fiscal year 2026, the FMRs in the Albuquerque, NM metropolitan area are set at $1,009 for a studio, $1,185 for a one-bedroom unit, $1,464 for a two-bedroom unit, $2,036 for a three-bedroom unit, and $2,399 for a four-bedroom unit. These figures provide a benchmark for affordable housing costs in the area. The current average market-rate rent in the metropolitan area is approximately $1,190, indicating that the FMR for a one-bedroom unit is closely aligned with the prevailing market conditions. This alignment suggests that the FMRs are reflective of the current rental market dynamics in Albuquerque, NM.

The implications for affordable-housing providers and voucher recipients are significant. The close alignment of the FMRs with the current average market rent suggests that the FMRs are keeping pace with observed market rent growth. This alignment is crucial for ensuring that voucher recipients can access a range of housing options without facing significant financial burdens. However, the FMRs for larger units, such as three-bedroom and four-bedroom units, are notably higher than the average market rent, which may provide greater flexibility for families requiring larger accommodations. During the forecast period, it is likely that the FMRs will continue to provide a viable means for low-income households to secure housing in the Albuquerque metropolitan area, assuming that market rents do not experience disproportionate increases relative to the established FMRs.

HUD Fair Market Rents (FY2026) — Albuquerque HMA

HUD Fair Market Rents are used for the Housing Choice Voucher program and as benchmarks for other HUD programs. They reflect the 40th percentile of gross rents for standard-quality rental units.

Forecast

The rental housing market in the Albuquerque, NM metropolitan area is projected to experience a demand for approximately 3,581 new rental units during the next three years. This demand reflects the ongoing need for rental housing in the area, driven by factors such as population growth and economic conditions. The current construction pipeline includes 819 rental units under construction, which will contribute to meeting this demand. However, the total number of units under construction, combined with any existing excess vacant inventory, suggests that additional construction is not needed at this time. Further development beyond the current pipeline could lead to an oversupply in the market, resulting in a softening of rental conditions.

The Albuquerque metropolitan area has seen fluctuations in rental demand over recent years, influenced by changes in employment and migration patterns. The demand for rental units is expected to remain steady, supported by continued economic growth and a stable job market. The service-providing sectors, which form a significant part of the local economy, are anticipated to sustain employment levels, thereby supporting rental demand. Additionally, net in-migration to the area is likely to contribute to the need for rental housing, as new residents seek accommodation options.

During the forecast period, the balance between supply and demand will be crucial in maintaining market stability. The current level of construction activity, with 819 units underway, aligns with the projected demand, ensuring that the market does not become oversaturated. Developers and policymakers should monitor market conditions closely to avoid potential imbalances that could affect rental prices and vacancy rates. The focus should remain on aligning new construction with actual demand to support a healthy rental market.

The Albuquerque rental market's ability to absorb new units will depend on various factors, including economic conditions and demographic trends. As the metropolitan area continues to attract new residents, the demand for rental housing is expected to persist. However, careful management of the construction pipeline will be essential to prevent an oversupply that could negatively impact the market. By maintaining a balance between supply and demand, the Albuquerque rental market can continue to provide stable housing options for its residents.

In conclusion, the Albuquerque, NM metropolitan area is projected to require 3,581 new rental units over the next three years. With 819 units currently under construction, the market is positioned to meet this demand without the need for additional development. Ensuring that construction activity remains aligned with demand will be key to maintaining a stable and healthy rental market in the region.

Table 8. Demand for New Rental Units — Albuquerque HMA, 3-Year Forecast

Location Fundamentals

The standard HUD HMP sections above describe the metropolitan area's housing market itself. This section characterizes the underlying drivers of price formation — safety, schools, natural-hazard exposure, infrastructure, policy, and demographic tailwinds — from Zoomprop's proprietary thematic layers. These signals are the most-replicated non-housing inputs in the hedonic-pricing literature.

The Albuquerque metropolitan area exhibits a diverse set of location fundamentals that influence its housing market dynamics. The median school rating of 5.00 suggests moderate educational quality, which may stabilize home prices by attracting families seeking balanced educational opportunities. The top peril identified is an earthquake, with a score of 76.43, potentially impacting insurance costs and influencing buyer caution in certain areas. An average walk score of 19.7 indicates limited walkability, which could affect demand for homes in more car-dependent neighborhoods. Over the past three years, the population growth rate of 0.3 percent reflects a relatively stable demographic trend, while a significant income growth of 22.1 percent may enhance purchasing power and support upward pressure on home prices.

Safety

• Across the Albuquerque metropolitan area, Zoomprop aggregated 114,118 reported incidents over the most recent six months and 20,689 in the last 30 days.

• Most recent FBI UCR data for the state (2025) shows a violent-crime offense rate of 38.2 per 100,000 residents and a property-crime offense rate of 94.2 per 100,000 residents.

Source: FBI Uniform Crime Reporting (UCR), state-level, latest full year available.

Schools

• 287 K-12 schools operate within the MSA (199 with GreatSchools ratings).
• Median GreatSchools rating is 5.0 out of 10; 32 schools score 8 or higher and 38 score 3 or lower.
• Average high-school graduation rate is 63.7 percent.
• Average student-to-teacher ratio is 16.1 to 1.
• Average share of students classified as low-income across schools in the MSA is 76.0 percent.

Top-rated schools in the Albuquerque metropolitan area

Natural-hazard exposure (FEMA National Risk Index)

• Of 241 census tracts in the MSA, 167 (69%) rated Very Low; 49 (20%) rated Relatively Low; 19 (8%) rated Relatively Moderate; 3 (1%) rated Relatively High; 2 (1%) rated No Rating; 1 (0%) rated Very High.
• Leading perils by average FEMA NRI risk score across the MSA's tracts: Earthquake (score 76.4); Hail (score 60.0); Lightning (score 53.0); Riverine Flood (score 45.3); Landslide (score 26.1).
• The MSA's tracts average a social-vulnerability index of 56.1 and a community-resilience score of 33.2 (both on FEMA's 0-100 scale).

Source: FEMA National Risk Index, mapped to census tracts and rolled up to the MSA. Flood and wildfire capitalization into home prices is well-documented post-2017 disclosure (Bin & Polasky 2004; Keys & Mulder 2024).

Accessibility & infrastructure

• Across 39 neighborhoods measured, the Albuquerque metropolitan area has an average Walk Score of 19.7 and an average Bike Score of 29.1.
• 2 neighborhoods score above 70 on Walk Score ("very walkable"); 34 score below 50 ("car-dependent").
• The MSA is served by 1,828 public-transit stops operated by 3 transit agencies across 17 neighborhoods.

Policy & development pipeline

Recent policy changes affecting the Albuquerque metropolitan area

Active development pipeline (top projects by investment)

Demographic tailwinds

• Population-weighted median household income across the MSA is $63,770.
• Three-year median-income growth averages 22.1 percent.
• Three-year population growth averages 0.3 percent.
• Average neighborhood-level unemployment rate (ACS-derived) is 11.7 percent.
• Average ACS-reported median gross rent is $960.
• Average ACS-reported median owner-occupied home value is $201,495.

Terminology, Definitions, and Notes

A. Definitions

B. Data Lineage

• Employment & unemployment (Economic Conditions): U.S. Bureau of Labor Statistics — CES for payrolls by supersector, LAUS for unemployment at MSA/state/nation, QCEW (BLS/Florida Commerce equivalents) as a fallback where CES is suppressed at this metro.
• Population & households (Population and Households): U.S. Census Bureau Population Estimates (PEP V2025 flat files), 2020 decennial census base, American Community Survey 1- and 5-year data.
• Migration flows: U.S. Census Bureau ACS 5-year Metro-to-Metro Migration Flows.
• Home sales and prices (Home Sales Market): Zoomprop market data (metro home-price, sales-volume, and new-construction-price series); Freddie Mac (30-year fixed-rate mortgage); Zoomprop listing aggregates (months of inventory, days on market).
• Residential permits (Home Sales Market, Rental Market): U.S. Census Bureau Building Permits Survey — full-year county files aggregated to MSA.
• Rental market: Zoomprop rent and vacancy aggregates; unit-count series from Zoomprop; developer research via Tavily.
• Forecasts: Zoomprop trend projections over the most recent 5-year window of the underlying series, plus a 2.5 % frictional-vacancy adjustment for the housing-demand calculation.