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.
![inflation-250 inflation-250](https://www.casanm.homes/wp-content/uploads/2022/10/inflation-250.png)
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.
![88-percent-icon 88-percent-icon](https://www.casanm.homes/wp-content/uploads/2022/10/88-percent-icon.gif)
![stop stop](https://www.casanm.homes/wp-content/uploads/2022/10/stop.png)
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
![house house](https://www.casanm.homes/wp-content/uploads/2022/10/house.png)
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
![buildings buildings](https://www.casanm.homes/wp-content/uploads/2022/10/buildings.png)
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 |
![apt-sample-700 apt-sample-700](https://www.casanm.homes/wp-content/uploads/2022/10/apt-sample-700.jpg)
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% |