Rents are growing in Albuquerque
Sheldon said the market price for apartments was at an all-time high.
“We’re seeing a lot of new demand, and before all of this happened, we were missing about 15,000 units in the subway for apartments and houses, for rent, so we already had something that was in short supply,” Sheldon said.
Reilly White, associate professor of finance at UNM, said rents rose about 11% nationwide – and more than 17% in Albuquerque.
“Back in 2020, a year ago, a very different market,” said White. “We were in an economic recession due to the pandemic closings. The number of households in the US has even shrunk. We have reached a lower level; landlords are offering incentives to occupy apartments. Now people have more confidence in the job market, they are “You change jobs, you get new jobs, and that means that the price pressure on rent increases”.
Large companies such as Intel, Amazon and Facebook are also bringing hundreds of new jobs to the metropolitan region.
“On the one hand, you think, oh my god, it’s always good news to see jobs grow, it’s always good news to see companies hiring new Mexicans and being part of the economy,” White said. “But it also raises prices because there are delays. When we start involving companies and other sources, it will take a while for construction to catch up.”
White predicts that rental rates won’t go down anytime soon. Meanwhile, experts said many tenants will be forced to downsize.