ALBUQUERQUE, N.M. — Albuquerque is one of the best metros in the Southwest to own rental housing, ranking higher than places like Austin, Oklahoma City and Phoenix in rankings for the second quarter released by Seattle-based All Property Management.
The Albuquerque metro area placed second in the four-state region consisting of Arizona, Oklahoma, New Mexico and Texas. It trailed only Dallas, and ranked 27 among 75 metros across the country.
“Albuquerque is surprisingly close to the 75 (metro areas’) national average for most of the metrics we track, but with higher rent variance and lower job growth,” said All Property spokesman Sol Villarreal in an email to the Journal.
Albuquerque showed strong improvement from the first quarter of this year, when it ranked seventh in the region and 48th nationally, Villarreal said.
“A low vacancy rate of 5.9 percent and increasing rental rates of 2.67 percent in the last year indicate that rental properties are filling up quickly as rental rates are going up,” All Property says in its market analysis.
“Another positive sign for the Albuquerque real estate market as a whole is that properties are only sitting on the market for 64 days prior to being sold,” the analysis says. “This statistic is typically looked at to gauge market activity.”
Covering both apartments and single-family rentals, the rankings are based on six statistical measures that also include single-family home price appreciation. All Property is a national clearinghouse for real estate investors to connect with property management companies at the local level.
All Property’s Southwest region is the second-weakest in the country for rental housing, ahead of last-place Northeast.
Dallas had the lowest ranking of all regional No. 1 cities at 14. In addition to Albuquerque’s showing, the Southwest region’s overall rank got a little buoyancy from Phoenix at 28 and the Texas cities of El Paso at 30, Austin at 35 and San Antonio at 39. Tucson had the region’s lowest ranking at 66.
The top markets for rental housing in the country were Grand Rapids, Mich.; Poughkeepsie, N.Y.; and San Francisco. The worst were Dayton, Ohio; Birmingham, Ala.; and Buffalo, N.Y.