Albuquerque rent prices ease in 2023 (a bit)

While the cost to rent an apartment in Albuquerque remains at eye-popping levels for many of its residents, it appears that an ease is underway. For now. The issue is top of mind as rent prices have outpaced wages for many in the city, which places the issue of affordable housing as an urgent priority for local government.

According to a Jan. 4 report by housing economist Chris Salviati at online apartment listing service Apartment List, rents fell 1.2% in the Duke City in December, down 2.4% from a summer peak. The median monthly rent price for a one-bedroom apartment is $963, while a two-bedroom is $1,232. The overall median rent (for all bedroom sizes) is $1,171 – ranking the city 79th among the 100 largest U.S. cities.

For comparison, the median U.S. rent is $1,211 for a one-bedroom, $1,365 for a two-bedroom, and $1,379 overall – making the median rent in Albuquerque 15.1% lower than the national rent – and similar to prices in Lubbock, Texas, ($1,191) and Spokane, Washington ($1,139). Irvine, California’s rent prices rank it at the top ($2,986), while Fort Wayne, Indiana, is at the bottom of the list at $957.

While rents in Albuquerque still increased 0.2% overall in 2023, it marked a notably slower rate of growth compared to 2022’s 9.3% increase.

Salviati said part of the reason for the December decline is due to a more passive winter rental season, which includes the end of year holidays when moving activity typically slows.

“Now is the time when renters have the most sway in lease negotiations, but it likely won’t be long before rents begin to trend up again,” Salviati said in the report.

Other highlights from Apartment List’s January 2024 rent report include:

• Albuquerque’s rent growth over the past year (+0.2%) is not far off from the state (+0.1%) and national averages (+1.0%).
• The city’s December decline of 1.2%, ranks it 76th out of the country’s 100 largest cities. Similar monthly declines were found in Chandler, Arizona (-1.1%), and New Orleans, Louisiana (-1.2%). Long Beach, California, had the highest December increase (+1.3%), while Jersey City, New Jersey, saw the biggest decline (-2.6%).
• Nationwide, rents fell 0.8% in December, marking a fifth-consecutive month of declines.The median monthly rent in the U.S. is down $45, or -3.2%, from a midyear peak in August.

Apartment List uses median rent statistics from the U.S. Census Bureau along with calculations from its own listing data to compile the report. To access the full report, click here.