Why the Albuquerque, New Mexico Area is Ripe for Real Estate Investing!
Job growth! Albuquerque hosts the offices of large corporations like Intel, Honeywell, General Mills, and ABB. Netflix recently announced that it would open a production hub in the city and invest $1 billion in productions over the next decade. New Mexico's job growth rate at 2.6 percent outpaces the U.S. job growth rate of only 1.5 percent. Albuquerque, New Mexico's largest city, recently ranked in America's top ten best large-size metro areas in the country for economic growth potential by Business Facilities. The respected publication recognized that Albuquerque's tech industry, health care facilities, demographics, and workforce development are leading to unprecedented growth. Albuquerque offers excellent access to outdoor recreational sports like hiking, mountain biking, and skiing in the Sandia Mountains that border the metro area to the east. The popular Rio Grande River that flows through the city's center is a natural playground for kayakers, and miles of walking and cycling trails wind through its banks. Albuquerque also benefits significantly from the many educational institutions in the city, including the University of New Mexico and Carrington College.
Why are so many Americans flocking to Albuquerque?
The oil and gas boom is also feeding the influx of people now calling Albuquerque home. The New Mexico Oil and Gas Association and the American Petroleum Institute recently commissioned a study in which they expect New Mexico oil and gas to continue growing at a "record pace." The resulting revenue for the state will add billions of dollars in new infrastructure investments. With the accelerated growth, the report estimates, production value in New Mexico would increase from $17 billion in 2017, to more than $72.6 billion in 2030! That increase will triple New Mexico's contribution to the state's gross domestic product. The report also found that local revenues from the industry would also more than double! With incredible demand, the need for rental housing in the Albuquerque market is going to remain high for the foreseeable future. Property investments within strategically desirable neighborhoods not only net positive cash flows, but they also have strong potential for long-term appreciation.
Only 2 1/2 hours from the famous ski resorts of Taos and Less than an hour from the culturally rich state capital, Santa Fe, Albuquerque has long attracted new residents with its favorable economic conditions, artistic flair, and world-class universities. The city is home to over 40% of New Mexico's entire population. Well known for the annual International Balloon Fiesta and as the backdrop of hit television shows like "Breaking Bad," Albuquerque, New Mexico, is one of America's most beautiful cities. Recent Hollywood film projects have also elevated Albuquerque's visibility as a filming location. The city was recently included in MovieMaker Magazine's yearly list of the "Top 10 Cities to Be a Movie Maker." One thing's abundantly clear when it comes to the future of Albuquerque, the city's strong economic prospects will continue to attract savvy investors.
Oil isn’t the only boom in Albuquerque!
Much of Albuquerque's population is slightly older, with the 45 to 64-year age group making up more than a quarter of the community. Because of the city's pleasant weather and coupled with the low cost of living, it is also a popular retirement destination. People ages 65 and older represent an incredible 14 percent of the population. As one of the most affluent generations, baby boomers are among the fastest growing segments of renters in the United States. Attracted to the “maintenance free” lifestyle that renting offers the numbers of boomers entering the rental market rose 28 percent over the last six years according to Census data. Projections estimate that the trend will continue to increase through the next decade and Albuquerque will benefit greatly as boom gravitate to the Duke City. Like many hot spots in Houston, rental inventory in Albuquerque hasn't managed to keep pace with the demand, and the city is ripe with real estate investment potential.
- Albuquerque's cost of living is slightly below the national average, and residents also pay less than the average American for groceries, utilities, and transportation.
- The median sales price for single-family homes in Albuquerque is $201,900.
- With a population of just under one million people in the Albuquerque metro area, America's 32nd most populated city is poised for stellar growth!
- The average annual salary in Albuquerque is $46,400!