Albuquerque, New Mexico Short-Term Rental Market Analysis
The short-term rental (STR) market in Albuquerque, New Mexico, currently hosts approximately 2,906 listings, with an average daily rate (ADR) of $153.75 and an occupancy rate of 67.87%. A standout metric for this market is the average monthly revenue per property, which is $2,277. This summary provides an extensive analysis of Albuquerque's STR landscape, offering insights for investors, property managers, and market researchers.
Albuquerque, New Mexico Short-Term Rental Market Overview
Visitor Profile
Albuquerque, New Mexico, attracts approximately 1.2 million visitors annually, showcasing a diverse demographic profile. The city draws a mix of leisure travelers, business visitors, and those attending events, with a significant portion of tourists being families and couples aged 25 to 54. The primary reasons for visiting include exploring cultural attractions, outdoor activities, and culinary experiences. The economic impact of tourism in Albuquerque is substantial, contributing over $1 billion to the local economy each year, underscoring the importance of this sector for the city’s growth and sustainability.
Key visitor statistics reveal that Albuquerque’s tourism market is characterized by a blend of domestic and international travelers. The majority of visitors come from neighboring states, with Texas and Arizona leading the way. The average length of stay is around 2.5 nights, with peak seasons occurring during the spring and fall, coinciding with events like the Albuquerque International Balloon Fiesta, which attracts thousands. According to the tourism bureau (https://www.visitalbuquerque.org), these events significantly boost hotel occupancy rates and overall visitor spending. Additionally, the city’s unique blend of Native American and Hispanic cultures, along with its outdoor recreational opportunities, make it a compelling destination. The visitor statistics report (https://www.visitalbuquerque.org) indicates that 60% of tourists engage in cultural experiences, while 45% participate in outdoor activities, highlighting the diverse interests of Albuquerque’s visitors. Understanding these dynamics is crucial for STR operators aiming to cater to the evolving preferences of travelers in this vibrant market.
Top Attractions
Albuquerque, New Mexico, is a vibrant city that beautifully blends rich cultural heritage with stunning natural landscapes. Known for its breathtaking views of the Sandia Mountains and the enchanting Rio Grande, Albuquerque offers a diverse array of attractions that cater to all interests. Visitors can explore the fascinating history of the region at the Indian Pueblo Cultural Center, or take a scenic ride on the Sandia Peak Tramway for panoramic views. With a mix of outdoor adventures, cultural experiences, and family-friendly activities, Albuquerque is an ideal destination for anyone looking to immerse themselves in the unique charm of the Southwest.
One of the top attractions in Albuquerque is the Albuquerque Biological Park, a sprawling complex that includes a zoo, aquarium, and botanical garden. This family-friendly destination offers visitors the chance to explore diverse ecosystems and learn about wildlife conservation. For more information, visit the official website at https://www.cabq.gov/culturalservices/biopark. Another must-see is the Petroglyph National Monument, where ancient rock carvings tell the stories of the area’s early inhabitants. Hiking trails provide access to these fascinating petroglyphs, making it a perfect spot for outdoor enthusiasts. Learn more at https://www.nps.gov/petr/index.htm. Lastly, the Albuquerque Museum showcases the city’s art and history, featuring both permanent and rotating exhibits that highlight local culture. The museum’s website, https://www.cabq.gov/museum, offers details on current exhibitions and educational programs. With these attractions and more, Albuquerque is a treasure trove of experiences waiting to be discovered.
Regulations
Albuquerque short-term rental regulations are essential for property owners looking to rent out their homes or investment properties. The city has established a comprehensive framework to ensure that short-term rentals operate legally and responsibly. Property owners must obtain a Short-Term Residential Rental Permit from the City of Albuquerque, which requires compliance with specific zoning regulations. Additionally, hosts are responsible for collecting and remitting the Lodgers’ Tax, which is currently set at 7.75%. Understanding these regulations is crucial to avoid penalties and ensure a smooth rental experience. For those interested in navigating the Albuquerque short-term rental landscape, it’s vital to stay informed about the latest requirements and guidelines.
Key requirements for short-term rentals in Albuquerque include obtaining the necessary license, which is mandated by the city’s ordinance (Ordinance 2019-001). The application process involves submitting proof of insurance and ensuring compliance with local zoning laws. Property owners must also adhere to safety regulations, including smoke detectors and carbon monoxide detectors in the rental unit. Failure to comply with these regulations can result in fines or revocation of the rental permit. For detailed information on the application process and specific requirements, property owners can visit the City of Albuquerque’s official website (https://www.cabq.gov/planning/short-term-rentals). Additionally, the city provides resources regarding tax obligations and zoning restrictions, which can be found at (https://www.cabq.gov/finance/lodgers-tax). Staying informed about Albuquerque short-term rental regulations is essential for a successful rental operation.
Vacation Rental Market Overview for Albuquerque
Albuquerque attracts visitors with its beaches and waterfront activities and family-friendly attractions. The short-term rental market here serves diverse traveler demographics, from business professionals to family vacationers.
This destination’s rental market offers unique opportunities for property investors, with comprehensive data revealing seasonal patterns and demand drivers.
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Albuquerque, New Mexico Market Performance Trends
Short-Term Rental Market Performance Analysis for Albuquerque
The short-term rental market in Albuquerque demonstrates dynamic pricing patterns and occupancy trends that savvy property investors and managers monitor closely. This comprehensive 12-month analysis reveals seasonal variations and revenue optimization opportunities.
Market Trend Summary
Current market indicators show: strong seasonal variation with peak summer demand
Market data updated daily. Professional-grade analytics trusted by thousands of property managers and real estate investors.
Albuquerque, New Mexico Rental Market Insights
10-Year Market Growth
Booking Activity
- 1-3 Months:59.4% Booked
- 4-6 Months:51.2% Booked
- 7-9 Months:45.4% Booked
- 10-12 Months:15.4% Booked
Cancellation Policies
- Flexible:0%
- Moderate:0%
- Strict:0%
- Super Strict:0%
Minimum Stay
- 1 Day:0
- 2 Days:0
- 3 Days:0
- 4-6 Days:0
- 7-29 Days:0
- 30+ Days:0
Short-Term Rental Regulations and Booking Patterns in Albuquerque
Albuquerque vacation rental operators navigate specific local regulations and booking patterns that shape market dynamics. Understanding minimum stay requirements, cancellation policies, and booking windows is essential for successful property management.
Market analysis reveals flexible booking policies attracting last-minute travelers. These insights help property managers optimize their listing strategies and maximize occupancy.
Local regulations and platform policies influence rental operations. StaySTRA provides comprehensive policy tracking and compliance insights.
Albuquerque, New Mexico Housing Market Data
Home Value Trends
Market Overview
- Typical Home Value:$342,911
- Median Sale Price:$347,916
- Median List Price:$396,000
Current Inventory
- Homes For Sale:1,819
- New Listings:714
Detailed Market Analysis
Real Estate Market Analysis for Albuquerque, New Mexico
The residential real estate market in Albuquerque, New Mexico presents unique opportunities for investors and homebuyers alike. Current market dynamics show balanced market conditions with accessible entry points with inventory levels and pricing trends that reflect broader economic conditions and local demand factors.
Key Market Factors
Important considerations for this market include: growing population trends, economic development, and lifestyle amenities These factors contribute to the overall market performance and future growth potential.
Real estate investments in Albuquerque, New Mexico benefit from balanced supply-demand dynamics and reasonable price points. Prospective buyers and investors should consider both current market conditions and long-term growth indicators when evaluating opportunities in this market.
Albuquerque, New Mexico Rental Market Composition
Entire Place by Beds
Common Rental Amenities
Amenity data is not available for this location.
Vacation Rental Property Types in Albuquerque
The vacation rental market in Albuquerque features a diverse mix of property types, from cozy studios to spacious family homes. Understanding the property composition helps investors identify market gaps and opportunities.
Market characteristics include a balanced mix of entire homes and private rooms. This distribution reflects local demand patterns and traveler preferences.
Premium amenities and guest ratings play a crucial role in rental performance, with data showing clear correlations between specific features and booking rates.
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Get Your Free Property Analysis →Executive Summary: Short-Term Rental Market Analysis in Albuquerque, New Mexico
Table of Contents
- Market Overview
- Key Performance Indicators
- 10-Year Growth Analysis
- Investment Potential & ROI
- Seasonal Market Patterns
- Property Type Performance
- Guest Preferences & Amenities
- Regulatory Environment
- Neighborhood Analysis
- Market Outlook & Trends
- Frequently Asked Questions
Market Overview
As of 2023, Albuquerque’s STR market comprises 2,906 active listings, a number that reflects the city’s growing appeal as a travel destination. The average daily rate (ADR) stands at $153.75, and the occupancy rate is 67.87%, which is slightly higher than the national average for STRs. The market's unique characteristics include a mix of urban and outdoor attractions, making it suitable for both leisure and business travelers.
Albuquerque boasts a population of approximately 545,852 and attracts around 40 million annual visitors, underscoring its potential for STR investors. However, it’s essential to note that the market has seen fluctuations in property listings and occupancy rates, which may impact overall profitability.
Key Performance Indicators
The Albuquerque STR market has shown a healthy average daily rate (ADR) of $153.75. This figure indicates the income potential for property owners, although it is important to contextualize this against the local economic conditions and competition. The occupancy rate of 67.87% indicates a solid demand for short-term accommodations, particularly during peak travel times.
Revenue per Property
The average revenue per property is $2,277 monthly, providing a useful benchmark for potential investors. However, achieving this revenue can depend significantly on property management efficiency, marketing strategies, and guest experience.
Rental Demand Score
Albuquerque has a rental demand score of 74.1, suggesting a strong interest in STRs. This score reflects both local tourism trends and the overall attractiveness of the city as a destination.
10-Year Growth Analysis
Over the past decade, Albuquerque's STR market has experienced notable changes. While the market saw significant growth in the early years, recent trends indicate a plateauing phase in listing counts and occupancy rates.
Historical Performance
From 2016 to 2025, the compound annual growth rate (CAGR) for STRs was approximately 8.5%. However, recent quarters show a decline from a peak of 3,339 listings in Q4 2024 to 2,906 in Q1 2025. Factors contributing to this decline may include increased competition, regulatory changes, and shifts in traveler preferences.
Growth Inflection Points
Key inflection points include the post-COVID recovery phase, which temporarily boosted demand, as well as the stabilization of the market as travel patterns normalized.
Investment Potential & ROI
Investing in Albuquerque's STR market can yield mixed results. The average ROI depends on property type and location, but realistic projections suggest returns between 5-8% for well-managed properties.
Property Type Breakdown
- Entire Place: Generally, entire home rentals tend to yield higher revenue compared to private rooms. Properties with 2-3 bedrooms are particularly popular.
- Private Rooms: While they may attract budget-conscious travelers, the revenue potential is lower compared to entire units.
Cash Flow Projections
Investors should anticipate varying cash flow based on seasonality, property management costs, and local regulations. A detailed cash flow analysis will help in understanding the potential earnings and expenditures.
Seasonal Market Patterns
Albuquerque's STR market experiences distinct seasonal variations. The peak season typically runs from May through October, coinciding with local events such as the International Balloon Fiesta.
Monthly Performance Variations
- Peak Season: Average revenue can exceed $2,500 per property.
- Shoulder Periods: These months may yield lower occupancy (below 60%) and revenue, necessitating strategic pricing adjustments.
Booking Strategy Recommendations
Investors should adopt dynamic pricing models and offer promotions during slower months to enhance occupancy rates.
Property Type Performance
The distribution of property types in Albuquerque reflects diverse guest preferences.
Performance Metrics by Size
- 1-Bedroom Listings: These constitute a significant portion of the market, with over 600 listings, often appealing to solo travelers and couples.
- 2-3 Bedroom Properties: These are popular for families and groups, thus generating higher revenues.
Recommendations
Investors should focus on entire home listings and consider configurations that cater to larger groups for better profitability.
Guest Preferences & Amenities
Understanding guest preferences is critical for optimizing rental performance.
Must-Have Amenities
- Internet (88.51%) and kitchen facilities (82.27%) are essential for attracting guests.
- Air Conditioning (86.97%) is increasingly sought after, especially during summer months.
Cost-Benefit Analysis
Investors should prioritize investments in high-demand amenities, while being cautious about overspending on luxury features that may not significantly impact occupancy or pricing.
Regulatory Environment
The regulatory framework in Albuquerque is designed to ensure responsible rental practices.
Key Regulations
- Licensing and Permits: All STRs must be registered, and hosts should adhere to zoning laws.
- Primary Residence Requirement: STRs must generally be the host's primary residence.
- Tax Obligations: Hosts are responsible for collecting and remitting applicable taxes.
For detailed regulations, refer to the City of Albuquerque's Short-Term Rental Regulations page.
Neighborhood Analysis
Albuquerque offers various neighborhoods, each with distinct characteristics influencing STR performance.
Top Performing Areas
- Old Town: Known for its historical significance and tourist attractions.
- Nob Hill: Popular with younger travelers and known for its nightlife.
Emerging Neighborhoods
Investors should keep an eye on neighborhoods undergoing revitalization, as these areas often present untapped potential for STRs.
Market Outlook & Trends
Looking ahead, Albuquerque's STR market faces both opportunities and challenges.
Future Growth Projections
Despite recent declines in listing counts, the market is expected to stabilize as tourism continues to recover post-pandemic.
Emerging Opportunities
Investors can explore niche offerings, such as eco-friendly accommodations or themed stays, to differentiate themselves in a competitive market.
Risk Factors
Potential risks include regulatory changes and market saturation. Vigilance in monitoring these factors is essential for maintaining profitability.
Frequently Asked Questions
What is the average ROI for STRs in Albuquerque?
- Average ROI is between 5-8%.
When is the best time to visit Albuquerque?
- The optimal visiting months are from May to October.
What are the STR regulations in Albuquerque?
- STRs must be registered and comply with zoning laws.
Which property type performs best?
- Entire homes, particularly 2-3 bedrooms, perform the best.
How does Albuquerque compare to other New Mexico markets?
- Albuquerque typically offers higher revenue potential compared to smaller markets like Santa Fe or Taos.
