Albuquerque‘s Affordability: A Qualified Ranking
Albuquerque is receiving attention for its relative housing affordability, but experts and residents caution that the “affordable” label requires significant nuance. While better than some markets, affordability remains a challenge for many, particularly those starting their careers.
According to Venturi, Albuquerque’s housing costs, both for renting and buying, aren’t “great,” but are comparatively better than other cities. Though, Passaris argues that without corresponding wage growth, the affordability claim feels misleading, especially given the rising cost of living.
Data from ADP, a payroll and HR solutions company, shows New Mexico wages increased by 5% year-over-year (July to July), but the state’s median annual salary remains at $45,400. This disparity between income and housing costs is a key concern.
The perception of affordability may also be skewed by data like that from Zillow, suggests Anthony Rice, a recent University of New Mexico (UNM) graduate. He believes the data is inflated by the higher starting salaries earned by graduates in STEM and business fields. He posits the median income for Albuquerque graduates is highly likely lower overall.
Passaris echoes this sentiment, stating that wages haven’t kept pace with rising housing prices, making renting difficult for students and recent graduates. He personally splits a $1,500 monthly rent (excluding utilities and fees) with a roommate. Rice similarly shares a $1,313 monthly rent.
The search for cheaper housing often necessitates compromises, Rice notes, citing sacrifices in amenities, proximity to campus, and even personal safety.
Experts agree that even in more affordable areas,financial strain is common. Divounguy emphasizes the need for further action to make both renting and homeownership more accessible.
Addressing the issue requires a multi-pronged approach, including increased housing construction and zoning reform, according to Jordon McConnell of Strong Towns ABQ, a nonpartisan housing advocacy group.McConnell points to austin, Texas, as an example, were zoning changes – allowing for diverse housing types, mixed-use developments, and reduced building height/parking restrictions – contributed to a 7% decrease in average rent. Strong Towns ABQ advocates for similar policy changes in Albuquerque.
While McConnell views the current affordability ranking as a positive sign, he warns it could be jeopardized without proactive changes. Divounguy expresses optimism about Albuquerque’s future, fueled by the growth of its tech and aerospace industries.
However, recent workforce reductions at major employers like Intel and Sandia national laboratories have tempered that optimism, particularly for young professionals seeking long-term housing options beyond renting, according to Rice. Passaris agrees with this cautious outlook.
Ultimately, Passaris believes Albuquerque shouldn’t celebrate its current affordability ranking, emphasizing that significant work remains to truly address the housing challenges facing its residents.