The Albuquerque real estate market experienced some changes in the last year. The number of one-bedroom homes for sale dropped, while the number of two-bedroom, three-bedroom, and four-bedroom homes increased. Meanwhile, fewer homes sold at the listed price and more were sold below listing price.
Rents are increasing
A lack of affordable housing is one of the biggest issues facing the state of New Mexico. This is especially true in the city of Albuquerque, where rents have increased much more than in other cities. The housing shortage in New Mexico has led to an increase in homelessness and crime in the state. Homeless people are at greater risk of being victims of crime and are more likely to be victims of homicide, drug overdose, and sexual assault.
Rents in Albuquerque are significantly higher than they were two years ago. According to Apartment List, the median rent for a one-bedroom apartment is now $1,017. For a two-bedroom unit, the median rent is $1,270. This is nearly 30 percent higher than the national average.
These deposits can only be used in the event of damage or non-payment of bills. The state’s landlords are allowed to raise rents in month-to-month and week-to-week tenancies, but they must notify the tenants 30 days in advance of the increase. In addition, landlords can charge late fees for rent over ten days, but they cannot charge more than 10 percent of the total rent due.
Home prices are appreciating
The state’s housing market has been stagnant for a few years, but in the last few years the market has begun to pick up. While it’s not as brisk as other areas, there are a number of neighborhoods that are showing promise as leading housing markets.
The city of Santa Fe, for example, has several neighborhoods that have seen appreciation over the past few years. El Dorado, a large neighborhood in Santa Fe, has seen an appreciation rate of over 1.50% in the last quarter, and over 10% over the past year, according to this site: https://my505home.com. The city is becoming a retirement destination for many people.
Home prices in New Mexico are still below the national median, but the city of Albuquerque has seen a meteoric increase in home prices. The median price of a home in Albuquerque has increased by more than 30% since the pandemic started. Real estate experts attribute this increase to low interest rates and a chronic shortage of homes in the market.
The state’s economy is doing well, but the lack of supply has made the housing market tight. With a shortage of inventory and improving employment numbers, home prices are expected to continue rising rapidly. The lack of inventory has created pent-up demand, which means that prices could continue to rise for another 15 percent. Fortunately, builders are working to increase the supply of homes, but this will take time.
Rental properties are more conducive to a successful business
Many tenants today are looking for quality-of-life factors in addition to competitive rental rates. Locations near parks and other amenities tend to attract a large number of tenants. The presence of these amenities can indicate the health of the local economy and the quality of local infrastructure.
Improvement of local infrastructure can increase the number of tenants and the quality of living in a neighborhood. On the other hand, new housing developments and construction can put a strain on rental rates for a short time. Investing in rental properties is one of the best ways to generate long-term profits and financial independence.
However, you have to know where to invest. As with any other type of investment, location matters. As a landlord, you must pay close attention to where the market is most landlord-friendly. According to this article, the first step in starting a rental property business is to create a business plan. The business plan should include your objectives and mission.
This will help you remain focused and help you grow your business. In addition, it will help you navigate the real estate industry. While the housing market in the area is undergoing some challenges, it is still an excellent opportunity for long-term investors. While rehabbing and flipping properties are still popular exit strategies, building a rental portfolio is a better long-term investment option.
