Affordability Crisis: The Challenges in Albuquerque’s Real Estate Market

Affordability Crisis: The Challenges in Albuquerque’s Real Estate Market

(Transcript Snippet): “

Tego: So Tracy, you know, there’s, there’s gonna be, and there’s gonna continue to be a lot of stories about the affordability crisis, if you will. Right. There’s always a crisis. Right. That’s what I was saying earlier at the top of the show, there’s always some sort of crisis going on, but in the real estate world now with, with prices you know, have increased so much over the last few years the big headline we’ve seen now is, you know, the affordability crisis, right? And, and, and it is a challenge. You know, you think about a market like let’s, let’s take San Francisco, cuz they’re the, the ugliest of all, when it comes to affordability in San Francisco. And I had it here a moment ago in San Francisco, they only 6% of, let me, let me, let me, let me get this straight.

Tego:

And I apologize. It, if you look at what the median home price is based on the median income, only 6% of the people in San Francisco based on the median income can afford to buy a media a median price house, which is 1.5 million, right? Just, you know, logic is, is just, doesn’t make sense there a thing that was interesting though, when I start looking at this and we look at Albuquerque compared to some of the other markets, Albuquerque is 65% of homes, you know, that that could be purchased based on the median income here in Albuquerque. Yeah. Which is better than most markets around the country, especially in the west. The only markets in the west that are, that are more affordable based on this criteria. And this comes from the national home builder association and the I think Wells Fargo is a co-author of this study. They, they put it out every month and it’s, it’s an interesting piece of data cuz it, it gives you at least a comparison to a, their markers. But if you look at the west only Douglas, Arizona, Fairbanks Fairbank and Anchorage, great falls, Montana are more quote, air quote affordable than, than Albuquerque. You know, then you go down the list, we’re very similar to Tucson and Yuma. We’re very similar to Pueblo Fort Collins.

Tracy:

Interesting. So that that’s good news, right? 65% of our population can afford the median price house.

Tego:

Yeah. If you just look at bare stats, you know, median income to median home price. Yep. And we know the reality is, you know, those that’s just data, but at least it gives us a, a benchmark to compare ourselves to other markets. Cuz again, those markets, it’s just data too. We know it’s challenging right now. And there’s only 600 and, or just, just about 700 homes on the market, in the Albuquerque area. As we sit here today, which is, you know, we’re gonna start the year with an lowest number of homes in the market that since recording data yeah. That I can, that I can find going back as far as I can find.