Occupancy, rents climb in Sept.
Apartment marketplace tight, ‘consistently stable’
Occupancy rates and rents were up in September, according to the latest apartment market report.
Described as a market that is consistently stable, the average rent price in Albuquerque, which includes both market-rate and affordable units, increased 3.3 percent over the year, from $799 to $823 in September of this year, with all unit types showing gains. The market occupancy rate of 95.8 percent was up from 95.4 percent the prior year.
The numbers come from CBRE Albuquerque’s latest apartment market survey, a report that looks at rents at 194 apartment complexes across town, totaling more than 40,000 units.
The survey says the average market-rate apartment unit in Albuquerque was $843 in September.
The apartment market is even tighter in Santa Fe due to the relatively high prices on single-family residences coupled with slow supply growth and, as reported by the Journal in recent years, more homes and apartments being converted into short-term vacation rentals.
With so much demand in the City Different, occupancy rates are high — 97.6 percent in September, CBRE reports. The supply-demand imblanace in the next six months might be mitigated somewhat with the opening of the 58-unit market-rate Railyard Apartments.
In Albuquerque, investors are continuing to add supply, according to CBRE. An estimated 1,000 marketrate units are expected to be delivered between 2017 and late 2019, and about 400 affordable units will hit the market in the next 12 months, according to the report.
Helping to meet demand, but decidedly on the high-end side, will be the Markana and Broadstone Northpoint projects in Northeast Albuquerque.
The 232-unit Markana at 6301 Alameda NE will be a highly amenitized complex offering one-, two- and threebedroom units ranging in size from 807 to 1,307 square feet. The pet-friendly complex will feature “well-designed, spacious floor plans with high-end finishes, simple elegance, clean lines and sophisticated styling,” with rents ranging from $1,100 to $1,800.
The company’s website touts a fall opening.
Northpoint, a 226-unit on Modesto NE between San Mateo and I-25, broke ground in November 2016 and will be completed in early 2018.
A for-rent sign welcomes potential residents at an apartment complex near Wyoming and Menaul NE. Occupancy rates and rents were up in September.