The state of reality in New Mexico is in a seller’s market. Demand for reality is very high in the state, pushing prices up and forcing buyers to act quickly. Different areas have different market conditions, so you’ll need to contact a reality agent in your area for the latest information.
Rent Prices Increased 0.2% Statewide in 2022
The housing market in New Mexico is experiencing a difficult time with demand exceeding supply. Apartment rents have jumped almost 22% in the past year, leaving people shocked and unable to find affordable housing. Experts believe that the market is simply waiting for the right conditions to be right in order for the big guys in the industry to make their move.
Factors that could affect the market include inflation, supply chain issues, and cost of materials. Let’s take a look at the main factors driving up housing costs. In the state of New Mexico, rents for two-bedroom apartments increased by 0.2% last year (click here to learn more). These increases are more than double the national average of 9.6 percent.
The pandemic may be partly to blame for the dramatic rise. Jonas Bordo, CEO and co-founder of rental information website Dwellsy, says that the influenza pandemic prompted people to reassess their living spaces. Although vacancy rates are still high, the economy is improving. Many people are returning to the city to make money and live in a nice apartment.
Meanwhile, demand for rental properties is strong in the destination cities. This is good news for investors looking for the best rent yields. The economy is improving, but there is still a shortage of housing and a high property price. As a result, there are few available apartments and mostly they aren’t that great compared to houses of similar prices.
Albuquerque Metro Area
The housing market in Albuquerque has been booming this year, and it’s no surprise, as the city’s population has soared in recent years. A lack of homes and low interest rates has contributed to the city’s thriving housing market, but so has the availability of high-paying jobs.
Home prices in Albuquerque have increased nearly eight percent in the past year alone. The city’s median home value is around 290,000 dollars, which makes it affordable when compared to markets in California. Moreover, it’s rare for a home to sit on the market for more than 50 days before it sells, and the homes that do go under contract are spacious luxury properties.
The Albuquerque housing market is dominated by federal and state jobs. Sandia Laboratories, an institute for government research, is a major factor, creating many high-paying jobs. The nearby Kirtland Air Force Base adds to this trend and also embarrasses the area significantly.
Moreover, while the city’s housing market is booming, average wages are still low, so the city’s reality market is not experiencing a bubble. The low inventory in Albuquerque means that the housing market will continue to remain tight, a factor that has boosted home prices. Despite this, a low-income level prevents most young adults from purchasing homes, but they may decide to stay in the area after college.
Therefore, investing in Albuquerque reality investment properties can help you capture a slice of a recession-proof rental market. While the city’s economy has improved in recent years, the low median income of local residents means that the majority of the population will remain in rent-only situations. The high cost of living combined with low average income means that many will not be able to buy a home despite the low median income.
Adding to that, the outsized student population has contributed to the high number of renters. According to www.bls.gov/albuquerque, the median household income in the Albuquerque metro area is $58,512, and the city’s unemployment rate is over four percent. According to Forbes, the metropolitan area has ranked 126th in the nation for business. Aerospace, semiconductors, and solar technology are among the most important industries in the area.
There are nearly three hundred galleries and museums in the region, including the World’s Only International Balloon Fiesta, which attracts 800,000 visitors every year. Furthermore, the University of New Mexico is a nationally recognized Class-I medical research institution, with the Lovelace Respiratory Research Institute, which is one of the world’s most prestigious biomedical centers and deserves the respect of the world.
While the median price in the Albuquerque metro area has increased, the supply of homes has decreased, and the median days on market have decreased since March 2012. As a result, the market is still considered affordable, even if the average home price is higher than the national index.
Santa Fe County
If you’re looking for the most farm and ranches for sale in New Mexico, Santa Fe County has plenty of options for you. From abandoned farms to mini rural farms, there’s sure to be a farm or ranch for sale in Santa Fe County. For more information, contact a company like Absolute Real Estate. Theirs and others’ websites list new listings and agents in the Santa Fe County area.
If you’re searching for a place to raise cattle, there are plenty of farms and ranches for sale in Santa Fe County. The property has a diverse ecosystem with a combination of mountain and prairie ecosystems. The land is well-maintained and supports a traditional ranch lifestyle. You’ll be close to Santa Fe, Taos, and Las Vegas.