While the city of Albuquerque has recently made itself a household name as the backdrop for the well-known television show Breaking Bad, it is also a city of great diversity, history and culture. Boasting virtually year-round sunshine and gorgeous mountain vistas, world-class shopping and dining, and a plethora of recreational pursuits, Albuquerque continues to draw new residents year after year. In fact, Outside magazine recently ranked it as one of the United States' best big cities for active families.
Q2 2015 Albuquerque Rental Market Update
In Q2 2015, Albuquerque was the eighth-best Southwestern housing market to own rental properties in and 60th-best in the country as a whole. Since Q1 2015, Albuquerque jumped one spot in the Rental Ranking Report's regional rankings for the Southwestern U.S. but fell eight spots in the national rankings.
The Albuquerque rental real estate market is far from perfect. Albuquerque property values increased by a mere 2.24 percent year-over-year in Q2 2015, a whopping 56 percent less than the national average and one of the lowest gains in the U.S. for that metric during that time period. The local median age of housing inventory, 67 days, was four days more than the national average during Q2 2015. The moderately low Albuquerque annual job growth rate, 1.64 percent (about 20 percent less than the national average), and high local vacancy rate, 7.70 percent (about 15 percent higher than the national average), further indicate that demand for Albuquerque housing isn't particularly strong.
Regardless, Albuquerque rental real estate can still be a lucrative investment. Albuquerque rental prices experienced relatively impressive year-over-year gains of 5.37 percent in Q2 2015, slightly higher than the national average of just under five percent. The modest local capitalization rate for rental properties, 6.48 percent, should be sufficient to pique the interest of most rental property investors. So, while Albuquerque is unquestionably far from having a hot rental real estate market, rental property investors are still capable of getting worthwhile returns there.
Q1 2015 Albuquerque Rental Market Update
All Property Management found in its Q1 2015 Rental Ranking Report that Albuquerque is the ninth-best market in the Southwestern U.S. for rental real estate investors and 52nd in the U.S. as a whole. It's moved down a few rankings since the most recent Rental Ranking Report was released, but that's largely because of the rapid improvement in many other Southwestern rental markets.
Albuquerque's median rental price has fallen slightly, 1.55 percent, over the last year. This is especially problematic since the vast majority of the markets we track in the Rental Ranking Reports have experienced increased rental prices in that time frame. Property appreciation rates in Albuquerque have been slow as well, when compared to other markets. Cap rates, however, remain just under seven percent. Albuquerque also benefits from relatively low homeowners insurance premiums and property taxes. Another positive sign for the Albuquerque real estate market as a whole is that the median age of its housing inventory is 62 days, which is solidly better than average.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Albuquerque rental property?
Thinking about renting out a property in Albuquerque? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.