In recent years, Alburquerque has been getting attention for the steady population growth and the emergence of new businesses. The city’s affordability, both as a place to live and as a place of business, has played a major role in making this possible. But what does this mean for the Albuquerque real estate sector?
In the State of New Mexico, Albuquerque records the highest population compared to the other cities. In fact, this city has had a higher population growth rate than the entire state since 1950. This translates to high demand for property to settle on, build businesses, and house organizations and institutions.
To get a clear understanding of the local real estate market, you need the input of a reputable property management company. At Blue Door Realty, we can help you get an accurate picture of the Albuquerque real estate market for your rental property investment needs.
Why is Albuquerque Real Estate an Attractive Investment?
Albuquerque has been singled out as one of the most attractive cities in the country for rental property investment. This is mostly due to its desirability to renters, attributed to factors such as the job market, the low and affordable cost of living, and the high quality of life.
Let’s take a look at some of the reasons why Albuquerque is a choice destination for investors in rental real estate.
Steady Population Growth
Alburquerque is New Mexico’s largest city. It has a population of more than 564,000 people. The area also includes counties such as Valencia, Bernalillo, Sandoval, and Torrance.
The city’s population has increased by over 3.4% in the past 10 years. This is a higher growth rate than most cities in the state. As of 2021, the rate of employment growth was recorded to be slightly above 4.1%. Conversely, the rate of unemployment as of October 2021 stands at 5.1%.
These figures show just how popular Alburquerque has become over the last ten years. The city has massive potential for exponential growth, especially in the real estate sector.
The Employment Opportunities
Before the year 2020, the rate of employment in Albuquerque was at a peak for ten years. Since then, businesses have started to recover from the effects of the Covid pandemic. The city has shown great promise in multiple sectors such as construction, manufacturing, hospitality, transport as well as professional and business services.
The Federal Reserve Bank of St. Louis states that the current GDP of the Albuquerque metropolitan area sits at over $45 billion. The main industries that contribute to this figure include microsystems and nanotechnology, semiconductors, aviation, renewable energy, IT systems, and cybersecurity.
Forbes previously rated Albuquerque as the 126th best area for business and career opportunities in America. It’s easy to understand why when you consider the organizations and companies found in the city.
Albuquerque also has various institutions of higher education that contribute significantly to the skilled labor force.
The Rental Property Market
Albuquerque real estate prices have been increasing mainly due to the interest shown by property investors. The renters in Albuquerque occupy about 41% of all the available housing units. Furthermore, housing shortages are driving up the rental market prices by as much as 22% each year; making it all the more lucrative for landlords and investors.
Albuquerque has become a popular destination for renters due to the presence of well-paying jobs, making the metropolitan area attractive to people looking to develop their careers.
In addition, the residents in the city enjoy relative affordability and high quality of life. This is why the Albuquerque metro area is considered a great place to invest in rental property.
The High Quality of Life
Albuquerque Economic Development claims this is an ideal city to create wealth, considering the low cost of living and high quality of life. The city is so affordable, in fact, that Forbes found the cost of living to be 4% lower than the average in America.
Albuquerque is also one of the most affordable cities in the western and south-western markets as compared to cities like Dallas, Phoenix, Denver, and Las Vegas.
Due to the employment opportunities and its overall desirability to the renters, Albuquerque is a top contender for the best areas to live in America, according to the US News and World Report.
Living in the Albuquerque metropolitan area provides residents with a lot of conveniences. The transport systems are very efficient, thus minimizing the average time of commute. In fact, Albuquerque is ranked 13th when considering the best commutes in the country, with the average commute being 26 minutes.
The climate in Albuquerque is also favorable, with as many as 310 sunny days in a year. This makes it appealing to visitors, especially in the cold months. If you’re looking for incredible opera performances, historical museums, or theatre shows, this is the city for you.
There is also the international event called the Balloon Fiesta, which attracts hundreds of thousands of visitors from across the world and is considered to be one of the most photographed events around the globe.
Real estate investment in Albuquerque is mainly driven by the growing demand for rental property. This growth in demand can be attributed to its desirability as a place to live, mainly due to factors such as the high employment rate, the affordability, and the high standards of living.
If you’d like to invest in the Albuquerque real estate market, you should consider hiring a property manager to help you make great rental property investments.
At Blue Door Realty, we offer professional property management services in Albuquerque and greater New Mexico. Our goal is to help you maximize your returns while providing a personal level of care to the condition of your property.
Get in touch with us today to find out how we can take your rental property investment to the next level.