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.
