The current housing crisis is an issue created by inflation and lack of supply, and once in a generation job growth. While our community welcomes Netflix, Facebook, Amazon and the expansion of Intel, these new jobs, bring new people, who need new housing.

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INFLATION IN HISTORY

The last time we saw inflation numbers like those we are seeing currently was from 1972 to 1975 when inflation increased 32%.

Today, the COVID-19 pandemic created supply chain issues and stimulus funds that have made new construction 30% more expensive.

MULTI-FAMILY HOUSING FACTS

  • The average Albuquerque Metro apartment was built in 1972 and is 50 years old.
  • 88% of apartment buildings in the metro are small (20 units or less), which is 5,206 buildings out of the total 5,910 apartment buildings.
  • Many of the apartment complex owners are your neighbors, not large out of state entities.
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THE OUTCOMES OF RENT CONTROL:

  • Will damage local landlords most, as most units are small and have small owners (who own less than a dozen units)
  • Will stop new development the moment we need it the most
  • Will freeze owners’ income when their expenses are undergoing the worst inflation since the 1970s
  • Will stop owners’ ability to renovate units or bring them into this century
  • We will see more units move to owner occupancy
  • Ripple effect will kill local construction jobs (our economy needs more)
  • Will kill economic development – if there is no place to live, there is no place to add jobs
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Unlike the last housing shortages, Albuquerque now has a perfect foundation to address this need:

  • Fabulous IDO zoning that encourages redevelopment and new development
  • An abundance of capital and financing (that will disappear if rent control is passed)
  • A vibrant community of for-profit and non-profit developers
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SOLUTIONS WILL ONLY COME FROM INCREASING SUPPLY – CONSIDER

  • Speed up plan checks, building inspections and approvals
  • Short term moratorium on the portion of GRT that goes to the State of NM (or all)
  • Creating incentives for more developers to enter the market
  • Creating incentives to offset the cost of moving from wood to steel construction and encouraging taller buildings in appropriate areas like downtown and uptown
  • Working with local building codes and fire regulations to streamline the conversion
    of office and retail into residential
  • Incentivize CNM to create more 2-year certificate programs for labor workers

JOB/HOUSING NEEDS AS OF 10/6/2022

EBA for Albuqueruque Area

Facebook Construction (est.) 500 N 500 500
Facebook Data Center Operations 35 Y 35 35
Fidelity Investments 240 S 106 134 240
Amazon Fulfillment Center – Project Chino 1,500 Y 1,500 1,500
Amazon Sortation Center – Project Nico 200 Y 200 200
Amazon Los Lunas – Project Charlie 600 Y 600 600
Amazon Airport
Intel Construction 1,000 N 1,000 1,000
Intel Expansion 750 Y 750 750
NBC Universal Studios 330 Y 330 330
Netflix Construction 1,000 N 1,000 1,000
Netflix Production 1,500 Y 1,500 1,500
Lance Industries 70 Y 70 70
LQ Digital 100 Y 100 100
Blue Halo (Additional Jobs Over 260) 64 Y 64 64
MTX Group Inc. (Downtown) 250 Y 250 250
Manna Capital LL 950 Y 950 950
Curia 674 Y 674 674
Vexus Fiber Optic 200 N 200 200
KAFB Space Force 100 Y 250 250
TOTAL 10,063 7,379 2,834 10,213
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EBM (Bernalillo County) 7.84 1.00
Total New Jobs 57,848 2,834 60,683
P/E Ratio = 2.17
Total New People 131,681
# Of persons per household 2.52
Total New Households 52,254
% That own 35%
# Of new single-family residences needed 33,965

 

% That rent 35%
# Of new apartments needed at 100% occupancy 18,289
Occupancy Rate at ideal market balance 95%

 

# Of new apartments needed at 95% occupancy 19,252
# Of new apartments built in 2020-2022 1,979
NEW Gap 17,273

 

Total units ABQ/Rio Rancho 91,148
Occupancy in 2019 – # of units occupied at 96% 87,502
# Of vacant units = 3,646

 

+New Gap+ occupied units – new occupied units 104,775
% Occupancy 115.0%