Albuquerque Market Outlook for 2018

[Julian Fleming]

Hello fellow Albuquerque Investors! What do you see in store for Albuquerque in 2018? Are you still seeing solid cash flows? And are the local laws favorable to landlords? Thank you! Julian

[Mark Hughes]

Hi Julian. I see you’re from Denver. I lived in Denver and moved to Abq about 2 years ago. Albuquerque market is less volatile and generally more stable and gradual than other areas like Denver which is on fire. That being said, Abq has been picking up for the last several years like most places. Inventory remains low, around 3,000 properties and average days on market around 45 the later half of 2017 compared to 56 in 2016. I find it much easier to find cash flowing properties in abq compared to Denver right now but rent appreciation has been very slow here due to minimal job growth. Depending on what segment you look at it’s nearing the past peak from 2007-ish so the question is of course how high will it go. I tend to think there’s still a few more good years of appreciation before it slows down and then starts correcting down again but I guess we’ll all have to see what happens!