Albuquerque Rental Market Update
Real Property Management Rio Grande is a leading Property Manager of single family homes in the Albuquerque New Mexico area. We have experience with investors as well as people with just one home and we manage all the aspects of your rental home.
You keep the return on investment and avoid the drama, late night calls, and legal issues surrounding rental properties.
The market is settling into a new normal. There are lots of details and tradeoffs we can discuss but high level:
1) Due to continued higher interest rates and higher prices than 5 years go, people cannot afford to buy as much home as previously. This drives the rental market higher. More people are going to rent houses. Rates were projected to come down but it has been 3 years now.
2) The sales market has slowed down. It is significantly slower than it was in past 3 years. However it is still more active than any in the past 15 years. Slower than 2022, hotter than other times.
3) Rents are leveling off and we are seeing seasonal slowdowns. This after a 25% increase in rents over the past 3 years. Returns are still great, but people are not as desperate to rent as in past 2-3 years. The key is to know where the pricing stands. rent are up 2-5% vs a year ago but there is a wide range
4) There is a lot more rental housing available then 1 year ago. Not houses (Single Family Homes/SFH). But apartments. 1000+ units have been built and they are offering discounts for moveins. I did a recent check and EVERY apartment complex from the highest end to the lower end of Rent had vacancies and most were offering move in specials. This is a challenge to condo and 4plex owners but has limited impact on SFH. We are not recommending 4plexes for owners at this time unless they get a great deal
5) There are opportunities to buy rental houses. But as the sales market cools, we need to just be patient and offer reasonable prices for houses. Since buyers are no longer desperate, we are not seeing investors bid out of the market like in 2021/2022 Market is slowing but it is still hotter than anytime before 2020. Call or text us to see how we can help you manager your rental home, or help you buy a rental home. We also can provide details on investment returns for any potential purchase you have….. show you how much you will make today and 5 or 10 years from now
6) Politics is adding some new twists. Recent State legislation requires disclosures and changes some fee structures. This will impact all owners but having a professional management company like Real Property Management allows easy compliance and no worries for owners. Individual owners not following the laws are subject to fines and penalties.
Mark Webb
Real Property Management Rio Grande
www.rpmriogrande.com
505-292-4765
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
