Exploring Albuquerque Real Estate and the Rise of Multigenerational Living
The Albuquerque real estate market is constantly evolving, bringing forth new trends and changes in regulations that impact both buyers and sellers. In this episode of “Albuquerque Real Estate Talk,” Tracy and Tego delved into various topics, including the rise of multigenerational living, the local housing voucher program, and the current state of the housing market. Let’s dive deeper into these discussions and explore their implications.
1. Multigenerational Living
One key trend highlighted in the video is the increasing popularity of multigenerational living. With the cost of living rising and the desire for closer family connections, many buyers are seeking homes that can accommodate multiple generations. Builders are responding to this demand by creating floor plans specifically designed to cater to the needs of multigenerational households.
The benefits of multigenerational living are manifold. Sharing expenses and combining incomes make it easier to afford larger homes comfortably accommodating everyone. Additionally, it provides an opportunity for stronger family bonds, built-in babysitting, and support networks. As the housing market adapts to these changing preferences, multigenerational living is likely to become even more prevalent in Albuquerque and beyond.
2. The Housing Voucher Program
Tracy and Tego also shed light on the Albuquerque Housing Authority’s housing choice voucher program, commonly known as the Section 8 program. The program aims to assist individuals with lower incomes in paying their housing costs. However, with only a limited number of available properties, the demand for the program far exceeds the available supply.
Landlords can participate in the voucher program, ensuring guaranteed rent payments as long as they do not discriminate against program participants. While the program holds immense potential to support thousands of households, the lack of available properties remains challenging. This calls for collaboration between landlords, real estate professionals, and the authorities to address the disparity and create more affordable housing options.
3. Albuquerque Real Estate Market Overview
Tracy and Tego also provided valuable insights into the current state of the Albuquerque housing market. According to the October 2023 home sales data, while the median price for single-family detached resale homes in the metro area has increased by around 5% compared to last year, affordability and high mortgage interest rates have impacted the volume of homes sold. The number of closed sales has decreased by 10% compared to the previous year.
With mortgage rates around 7.5-7.75% for well-qualified individuals, buyers are facing challenges in affording homes in today’s market. However, opportunities may exist for those willing to explore various strategies, such as negotiating for closing cost assistance rather than solely focusing on price reductions. Mortgage rate buy-downs are also becoming a significant factor in transactions, enabling buyers to navigate the high-interest rate landscape more effectively.
The rise of multigenerational living presents an exciting opportunity for buyers seeking larger homes and stronger familial connections. Simultaneously, the housing voucher program serves as a lifeline for lower-income people, highlighting the need for increased affordable housing options.
However, the affordability challenges and high mortgage interest rates have impacted the number of homes sold in the Albuquerque area.
The information provided in this blog post is based on the Venturi Group’s “Albuquerque Real Estate Talk” video episode, and the opinions expressed are solely those of the hosts. Audience members are advised to conduct their additional research and consult professionals before making any real estate decisions.