Albuquerque Real Estate Talk 479 – February 10, 2024
As experienced Albuquerque Realtors, we aim to simplify the complex dynamics of the Albuquerque real estate market for our clients and listeners. In the latest episode of Albuquerque Real Estate Talk, Episode 479 – February 10, 2024, Tracy and I explore essential topics for anyone navigating the housing market, incorporating both local and national perspectives, and we take a deep dive into Albuquerque Housing Afforability.
The Reality of “Shrinkflation” in Housing
We delve into the phenomenon of “shrinkflation” affecting the Albuquerque housing market. Despite homes becoming slightly smaller, prices are not decreasing. I found a 10% drop in the MEDIAN price of new construction homes from 2022 to 2023; however, the cost per square foot remains constant due to the reduced size of these homes.
Affordable Housing Initiatives
We talked about a topic this week by a national builder in Texas, who has 600-square-foot new homes priced between $145,000 to $160,000, sparking a debate on social media because they are very small and not super attractive. Despite the criticism, we discuss the value of such homes in Albuquerque, where affordable, financeable homes are scarce.
Understanding the Full Cost of Homeownership
Since Townhomes and Condos can seem like a great value when looking at a price only, we emphasize the importance of considering all costs associated with purchasing a home, including interest rates and HOA fees, in particular since a $300/mo HOA fee is equal to $40-$45k home price.
Rental Trends and Co-living
A trend we have seen recently in Albuquerque is the shifting rental prices, with rent price decreases for smaller apartments and increases for larger ones, leading to more people co-living based on what we hear from property managers. We also introduce CoBuy, a company offering solutions for co-buying property, addressing the affordability challenge.
Land Development and Regional Comparisons
Discussing land development, we note that a ready-to-build lot in Albuquerque costs around $100,000; with land development times of 2-3 years, building new affordable homes is challenging.
Legislative Efforts and the Affordability Struggle
I like that New Mexico’s legislative is making efforts to improve housing affordability. Still, there is a need for comprehensive solutions beyond financial aid, including builder incentives and infrastructural support.
We Are Here to Help with Your Albuquerque Real Estate Needs
Despite the challenges discussed, the Venturi Realty Group remains dedicated to assisting clients through the buying or selling process. For those considering entering the Albuquerque real estate market, we invite you to reach out for expert guidance.