Albuquerque, NM: Rental Property ROI Analysis
|75 U.S. City Avg.
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.
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 Q1 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?
Quite simply, there has never been a better time to purchase rental property in the Albuquerque metropolitan area. With capitalization rates of around seven percent, rental real estate in the Albuquerque area compares favorably to a diversified bond portfolio in today's low-interest market, but with superior potential for capital appreciation.
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.