The short-term rental market in Albuquerque, NM shows strong growth and potential for investors.
The city has become a popular destination for travelers and tourists looking to experience the rich culture, natural beauty, and outdoor adventures of New Mexico.
In this guide, we will examine the data points and trends that define the (Airbnb) short-term rental market in Albuquerque, NM.
Overview of the Short-Term Rental Market
According to Chalet, there are currently 1,855 active short-term rentals in Albuquerque, NM.
The occupancy rate is 59%. This means the average annual revenue for a short-term rental in Albuquerque, NM is $30,300.
Supply
The most popular homes are 2-bedroom homes, comprising 37.44% of inventory. This is followed by 3 and 1-bedroom homes at 26.48% and 26.48% of the total inventory, respectively.
Housing Market Trends
The housing market in Albuquerque, NM, is also showing strong growth. According to Zillow, homes in Albuquerque, NM, have appreciated 6.90% in the past year.
The median home value in Albuquerque, NM, is $321,411. This indicates that there is a stable and appreciating real estate market in the city, which can be an advantage for short-term rental investors.
Average Daily Rate
The median ADR for the market is $183.60. The Average Daily Rate is the highest for 4-bedroom homes ($120) followed by 3-bedrooms and 2 bedrooms at $113 and $113 respectively.
Yield and Property Taxes
The average gross yield for a (Airbnb) short-term rental in Albuquerque, NM, is 9.43%. This is a healthy return on investment for investors considering purchasing a property in the city for short-term rental purposes.
The average property tax in Albuquerque, NM is 0.87%, which is relatively low compared to other areas in the country. This can make investing in short-term rentals in the city even more attractive.
Hosts
The market is not dominated by property management firms. The largest host is Douglas with 4.88% of the total inventory and an average review of 5.00 ⭐️s .
Short-Term Rental Regulation
The short-term rental regulation in Albuquerque, NM is investor-friendly, with no caps on the number of licenses issued or the number of properties that an investor can own.
However, short-term rental hosts are required to obtain a permit and pay a lodging tax to the city. The regulations are straightforward, making it easy for investors to navigate the process of starting a short-term rental business in the city.
Guests
The majority of the guests come from outside of New Mexico. 4.82% of all guests are from Phoenix followed by Tucson with 3.92%.
Population
Located in central New Mexico, Albuquerque is the largest city in the state, with a population of approximately 560,218 people. The city is known for its mild climate, stunning desert landscapes, and thriving cultural scene.
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Climate
Albuquerque has a high desert climate characterized by hot summers, mild winters, and low humidity. The average temperature during the summer months is around 90°F, while in the winter, the temperature drops to an average of 47°F. The city receives very little rainfall, making it an ideal destination for outdoor enthusiasts.
Economy and Median Household Income
The median household income in Albuquerque, NM is $56,366, according to US Census Buearau. The city’s economy is diverse, with major industries including healthcare, education, government, and tourism. The city is home to several major companies, including Sandia National Laboratories, Intel, and Kirtland Air Force Base.
Sports Teams and Colleges
Albuquerque is home to several minor league sports teams, including the Albuquerque Isotopes, a minor league baseball team, and the New Mexico United, a professional soccer team. The city is also home to several colleges and universities, including the University of New Mexico, Central New Mexico Community College, and the Southwestern Indian Polytechnic Institute.
Crime Rate
While Albuquerque, NM, has a higher crime rate than the national average, efforts are being made to improve public safety in the city. The city has invested in community policing initiatives and is working to address issues such as drug addiction and homelessness.
Tourism
Albuquerque is a popular destination for tourists from all over the world, with over 6 million visitors in 2019. The majority of visitors come from within the United States, with the largest number coming from Texas, Colorado, and Arizona.
The city’s top tourist attractions include the Albuquerque International Balloon Fiesta, the Sandia Peak Tramway, the Indian Pueblo Cultural Center, and the Albuquerque Museum.
Peak Season
The peak season in Albuquerque, NM, is during the fall months, from September to November, when the Albuquerque International Balloon Fiesta takes place. This event draws thousands of visitors to the city each year and is the largest hot-air balloon festival in the world.
Conclusion
The short-term rental market in Albuquerque, NM, shows strong growth and potential for investors. The city’s stable and appreciating housing market, along with its growing popularity as a tourist destination, make it an attractive location for short-term rental investment.
With an average daily rate of $183.60, an occupancy rate of 59%, and an average gross yield of 9.43%, investors can see a healthy return on investment. Furthermore, the investor-friendly short-term rental regulations in Albuquerque, NM, make it easy for investors to start a short-term rental business in the city.
