Demand Powers Rent Growth
Albuquerque’s performance was slow and steady in 2024 through July, with sustained rent growth, solid occupancy and a robust pipeline, but low investment activity, according to the latest Yardi Matrix Albuquerque multifamily market report. Average advertised asking rents rose 0.5% on a trailing three-month basis through July, to $1,349, while occupancy slid 50 basis points year-over-year to 94.9% in June, just above the 94.6% U.S. rate, as reported in the national multifamily market outlook.
Employment growth saw a 1.9% increase, or 8,400 jobs, in the 12 months ending in May, 60 basis points higher than the national average. Unemployment rose to 4.5% in June, trailing the U.S. (4.1%) and the state (3.9%), according to preliminary data from the Bureau of Labor Statistics. Professional and business services and government led job gains, up by 2,300 positions each. Meanwhile, information lost 1,100 jobs. There are several projects under development in the metro, which will further strengthen local economic growth and sustain multifamily demand. Two significant projects announced by Maxon Solar Technologies and Ebon Solar could position the state as a key player in the growing solar cell manufacturing industry.
Developers delivered 683 units in 2024 through July and had another 4,984 units under construction. Year-to-date, new construction volume fell just slightly below the level recorded during the same period last year. Meanwhile, investment activity totaled $82 million, with all sales recorded in the first quarter.
Read the full Yardi Matrix Albuquerque Multifamily Market Report: September 2024
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