Albuquerque Rental Market Update – February 2025: How Rents Impact Home Buyers, Sellers, and Investors
At Venturi Realty Group, we specialize in helping home buyers, home sellers, and luxury home buyers and sellers in the Albuquerque area. While we focus on buying and selling homes, but, we also understand that rental trends affect home values, buyer demand, and investment opportunities.
That’s why we’re providing this rental market update: Understanding rent trends is essential to making informed real estate decisions, whether you’re buying, selling, or investing.
Albuquerque Rent Prices: Still Rising, But Growth is Slowing
According to Zillow’s Observed Rent Index (ZORI), Albuquerque rents are still climbing but at a slower pace:
- Single-family rentals: $2,050/month (up from $1,990 in February 2024).
- Multi-family rentals: $1,368/month (up from $1,322 in February 2024).
Year-over-Year Rent Growth (YoY)
- Single-family rent growth: 3.06% (slower than the double-digit increases of 2021-2022).
- Multi-family rent growth: 3.54% (slightly higher than single-family homes).
While rents continue to rise, the pace has slowed, which could signal changes in buyer and seller behavior.
Rental Demand in Albuquerque: Single-Family vs. Multi-Family
The Zillow Observed Renter Demand Index (ZORDI) measures rental listing engagement, revealing key trends in demand.
ZORDI Scores (February 2025)
- Single-Family Homes: 77
- Multi-Family Homes: 63
- National Average: 63
What This Means for Home Buyers & Sellers
- Higher demand for single-family rentals (77 vs. 63 for multi-family) suggests many renters still prefer detached homes.
- More demand for single-family rentals = stronger homebuyer interest. Many renters may be considering buying instead of renting.
- Lower multi-family rental demand means investors in luxury apartments may face higher vacancy rates and slower rent growth.
For home sellers: Rising rental demand may encourage more renters to transition to homeownership, creating more buyer demand for homes.
For buyers: If rental demand stays high, it could push home prices up—making now a smart time to buy.
Multi-Family Construction Boom: How It’s Changing the Market
New Multi-Family Developments
- A record 4,000 new apartments are under construction, increasing Albuquerque’s apartment inventory by 7.4%.
- 80% of these units are luxury apartments, creating more competition in the high-end rental market.
Vacancy & Rent Growth Trends
- Vacancy rates: Increased to 8.6% in 2024 due to new construction.
- Occupancy rates: 94.6%, up slightly from last year.
- Luxury market rent growth: Slowing due to increased supply.
Key Takeaways for Home Buyers, Sellers & Investors
- For Home Buyers: High rental demand means homeownership is still attractive compared to renting.
- For Home Sellers: A shift from renting to buying could create stronger demand for homes.
- For Investors: Single-family rentals are outperforming multi-family in demand.
- For Luxury Investors: New apartment supply means higher competition and slower rent growth.
Looking to Buy or Sell in Albuquerque? We Can Help!
At Venturi Realty Group, we specialize in helping home buyers, sellers, and luxury real estate clients make the right move in Albuquerque’s dynamic market.
📞 505-448-8888