As rent prices continue to rise, it is putting a squeeze on people who are still reeling from the impact of the pandemic, with affordable housing becoming a rare commodity in Albuquerque, Santa Fe and surrounding areas.
Institute of Real Estate Management Government Affairs Chairman Chuck Sheldon told KRQE that the market has become more competitive as housing prices continue to rise, and the trend that started in 2018 has seen the cost per square foot jump form $.75 to $1.20. He told the outlet that the jump is about a $400 increase over that time.
“You have high demand for buildings, you have high rental demand,” Sheldon said. “Those are all indicators for driving rents.”
Help may be on the way, according to the report, with construction underway on 3,000 new apartments in the areas around Albuquerque and Santa Fe. Of those, around 38% are being built for low income individuals.
Sheldon told the station that while the additional units will help, supply remains a problem. He said that the market currently has a two-month supply of housing, down from about 10 months, and that can fuel price increases; and that the cost of repairs has increased by 30% to 40% over the last year.
Citing the Department of Housing and Urban Development, KRQE reported that rent prices in the region have increased by 15% to 20% over the last year, with rent for a single-bedroom apartment expected to top $820 this year, up about $50 from last year.