Market Overview
Metro Population:
911,000
Median Household Income:
$51,000
Unemployment Rate:
3.6%
Median Home Price*:
$156,000
Median Monthly Rent*:
$1,223
Located in the middle of the Rio Grande valley, Albuquerque is the most populous city in the state of New Mexico and the 32nd-most populous city in the United States.
Best known for its annual Balloon Fiesta and as the setting for AMC’s hit show “Breaking Bad,” Albuquerque, New Mexico, is a culturally rich and naturally beautiful metropolitan area. Albuquerque is also one of the major Southwestern cities, with a diverse population and some of the nation’s leading high-tech research facilities, including Sandia National Laboratories, Intel, and the University of New Mexico. At the same time, its cultural traditions continue to be an essential part of everyday life in the city. With one foot in the past, one foot in the present and both eyes on the future, Albuquerque is a fascinating place to visit and an even better place to call home. (Source: https://www.visitalbuquerque.org/about-abq/history/)
Why Invest Here?
Albuquerque is at the center of New Mexico’s “Technology Corridor,” a concentration of high-tech private companies and government institutions located along the Rio Grande river. It is also home to Intel, Sandia National Laboratories, Kirkland Air Force Base and four universities. And we can expect more jobs and movies coming out of the area as Netflix plans to move their new U.S. production hub to the area. More Exciting News for Albuquerque:- In October, Netflix announced that they will be moving their new U.S. production hub to Albuquerque. According the company, this should bring upwards of $1 billion in production money to New Mexico over the next decade and up to 1,000 production jobs per year.
- In April 2018, Carenet Healthcare announced they will invest $3 million in a downtown Albuquerque location and create up to 244 new jobs. Carenet Healthcare will be supported by New Mexico's closing fund, LEDA, and Job Training Incentive Program, JTIP. New jobs in downtown Albuquerque will bring economic activity to small businesses and new development.
- John Erwin, CEO of Carenet Healthcare, said the company is excited to expand their operations in New Mexico and is thankful for the support. The company will sign a 10-year lease on their building.
- In April 2018, 2NDGear (a leading provider of certified refurbished IT equipment for educational systems) announced they will create 100 new jobs in Albuquerque and will be investing up to $1 million in its New Mexico operations. 2NDGEAR will be pursuing JTIP funding. Richard Heard, president of 2NDGEAR's parent company, Insight Investments, said New Mexico's hospitality and tax reforms helped his company decide to expand in Albuquerque. In the last two years, many cities were considered for their new expansion.
Trends
Albuquerque Trends & Statistics 2018-2019
In this section, you’ll learn about the top factors that make Albuquerque one of the most popular real estate markets for 2019, including: affordable home values, passive income, and a quickly growing job market. Explore Albuquerque’s housing market, population, and employment trends in the tabs to learn more.
Data Sources:
- https://factfinder.census.gov/
- https://www.deptofnumbers.com/employment/new-mexico/albuquerque/
- https://www.zillow.com/albuquerque-metro-nm_r394312/home-values/
- Real Wealth Network Affiliate Data
Albuquerque real estate is affordable
- The median price of the average three bedroom home in Albuquerque was $190,000 in January 2018. This is 6% less than the median value nationwide. As of October 2018, three bedroom home values have risen to a median $199,000.
- In the neighborhoods where Real Wealth Network members invest, home values range from about $120,000 to $199,000. This is a median price of $156,000, which is 23% less than the average three bedroom home nationwide.
- This shows us that Albuquerque real estate is uniquely affordable but this may not the be the case for long. As you’ll learn later in this video, the number of jobs in the metro area is growing and as a result rental prices will likely continue to rise.
Albuquerque offers a strong cash flow opportunity.
- In January 2018, the median monthly rent of an average three bedroom home in the U.S. was $1,427, which is 0.71% of the median purchase price of $202,000.
- The median monthly rent of the average three bedroom home in Albuquerque was $1,207, which is over 0.92% of the median purchase price of $190,000.
- In the neighborhoods where Real Wealth Network members invest, the median monthly rent of R.E.A.L. Income Properties™ was $1,223. This is 0.93% of the median purchase price of $156,000.
- This shows us that there’s an opportunity to generate passive monthly cash flow in Albuquerque at a higher rent-to-purchase ratio than the national average.
Albuquerque home values have been rising over the last five years.
- Over the last 7 years, the average 3 bedroom single family home in the Albuquerque metro has appreciated at a steady rate of 2.38% per year (15.15% total) versus 6% per year (41% total) nationwide.
Albuquerque rents have also been rising over the last five years.
- Since 2012, the median rental price for 3 bedroom single family homes in Albuquerque has appreciated at a rate of 1.13% per year (7% total) versus 2.67% per year (17% total) nationwide.
- All of this tells us that, while Albuquerque home values and rents are rising, the area is not experiencing the wild appreciation or depreciation swings of many other markets. This is a good indication that the Albuquerque real estate market is a bit more stable than other U.S. markets, which makes investing here less-risky.
Albuquerque has been experiencing steady population growth.
- Albuquerque is experiencing steady population growth, which is a good indication of a strong real estate market.
- Since 2010, the population in Albuquerque has increased by 2.38%.
- The national population grew by 5.29% during this 7-year period.
- This shows us that Albuquerque is experiencing consistent growth year after year. And although this growth isn’t staggering, it’s another indicator that Albuquerque’s real estate market will continue to be stable in years to come.
Albuquerque is also experiencing significant job growth, which is a great sign this is a strong strong real estate market.
- Between August 2017 and August 2018 the number of jobs in the Albuquerque metro increased at a rate of 1.93%.
- Nationally the number of jobs increased by only 1.73% during this period.
- This shows us that the number of jobs in Albuquerque has increased 11% faster than the national average. This is good sign that more people will continue moving to the area. More people = more demand for rental housing. And this is good news for buy and hold investors.
Albuquerque is Affordable
- 3-bedroom homes in Albuquerque are 6% more affordable than the median value nationwide.
- In the neighborhoods where Real Wealth Network members invest home values are 23% less than the average 3 bedroom home nationwide.
- This shows us that Albuquerque real estate is uniquely affordable.
Albuquerque Offers Cash Flow Opportunities
- 3 bedroom homes in Albuquerque can rent for 0.92% or more of the purchase price compared to 0.71% nationally.
- This shows us that there’s an opportunity to generate passive monthly cash flow in Albuquerque at a higher rent-to-purchase ratio than the national average.
Albuquerque is Stable
- Over the last 7 years, the average 3 bedroom single family home in the Albuquerque metro has appreciated by 15.15% and the median rental price has appreciated by 7%
- This tells us that, while Albuquerque home values and rents are rising, the area is not experiencing the wild appreciation or depreciation swings of many other markets. This is a good indication that the Albuquerque real estate market is a bit more stable than other U.S. markets, which makes investing here less-risky.
Albuquerque’s Population is Steadily Growing
- Since 2010 the population in Albuquerque has increased by 2.38%, which is less than the 5.29% growth experienced nationwide.
- This shows us that Albuquerque is experiencing consistent growth year after year. And although this growth isn’t staggering, it’s another indicator that Albuquerque’s real estate market will continue to be stable in years to come.
Albuquerque is Creating New Jobs
- Between August 2017 and August 2018 the number of jobs in the Albuquerque metro increased at a rate of 1.93%, which is higher than the 1.73% job growth rate nationally. This shows us that the number of jobs in Albuquerque has increased 11% faster than the national average. This is good sign that more people will continue moving to the area. More people = more demand for rental housing. And this is good news for buy and hold investors.
Major Employers
Learning Resources
Webinar
Joe Torre
December 7, 2018
[Webinar] Cash Flowing in the Southwest!
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Disclaimer: The information provided on this page is for educational purposes only. Real Wealth Network makes no warranty or representation as to the accuracy, completeness or reliability of this information. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall Real Wealth Network be liable to you or anyone else for damage stemming from the use or misuse of this information.
