Renting vs. Buying a Home in Albuquerque
To rent a home or to buy a home in Albuquerque … which is the better choice for you? We know this dilemma can be a difficult one, so we took a closer look at the pros, cons, and everything in between.
Is Albuquerque a good place to live?
Before we dig into the benefits of buying vs. renting in Albuquerque, let’s talk about why this market area is a good choice for your home base.
An environment of beauty, adventure, and opportunity
With a culture that embraces progress and inclusivity, Albuquerque offers a well-rounded living environment for today’s diverse families of buyers and renters. It’s easy to see why the area’s natural beauty, quality of life, and forward-focused services have earned Albuquerque a spot on Livability’s Top 100 Best Places to Live. The icing on the cake is Albuquerque’s sunny disposition, with the area reporting over 300 days of sunshine during most years.
A thriving, future-focused community
According to Albuquerque’s statistics, the metro area has experienced consistent population growth year over year, notably in the 30-34 and 40-44 age ranges. This progression is projected to continue well into the future, driven in part by a local employment focus on research and development, healthcare, military and government services, and high-tech industries that acknowledge the value of scientific progress.
Top employers in Albuquerque offer attractive opportunities for job seekers at all levels, with major players that include:
- Kirtland Air Force Base
- University of New Mexico
- Albuquerque Public Schools
- Sandia National Labs
- Presbyterian Hospital
- UNM Hospital
- City of Albuquerque
- Blue Cross Blue Shield of NM
- Safelite Autoglass
- General Mills
With an overall cost of living that is below the national average across all major categories, Albuquerque stacks up favorably against several other southwestern cities, especially in terms of housing. More and more, movers from states with a relatively high cost of living, such as California and Washington, have been attracted to the quality of life and affordable lifestyle in New Mexico.
An active housing market
The housing market in Albuquerque remains strong, boosted by low-interest rates, family-friendly amenities, beautiful surroundings, and a reliable, sunny climate. In fact, a January 2021 review by Construction Coverage ranked Albuquerque 7th among the hottest real estate markets in the U.S last year. The article noted that available homes in Albuquerque spent a median of just 10 days on the market at a median price of $219,355, which represented an 8% change over the previous year.
Is it better to rent or buy in Albuquerque?
Whether you rent or buy, your housing expense represents a significant portion of the family budget so it’s important to understand the differences and relate them to your specific situation. Although renting may provide short-term flexibility and initial cost benefits, lease prices are sure to increase over time while a home purchase is an investment with the potential to pay off for years to come.
For those considering the home purchase process, accumulating the funds for a down payment is often an issue, making renting appear to be the more attractive choice. To help buyers overcome this obstacle, lenders offer a variety of mortgage options, including FHA programs and VA loan benefits that may make home ownership a more viable alternative. As you consider the financial implications, there are a variety of calculators that evaluate your debt-to-income ratio, local home prices, rental rates, and other factors to help you assess the benefits of renting vs. buying a home for your specific situation.
The price of rent will continue to rise
In terms of home maintenance and repairs, as an owner you’ll be responsible for devoting time and money to these necessary evils, but the upside is that you’ll control the solutions rather than waiting around while the property owner decides when and how to address each issue. And, even though being a renter means you get to avoid paying property taxes, no doubt the landlord or apartment building manager will pass those fees on to you one way one another through rental increases and added fees.
When it comes to creating a space that reflects your individual style, owning a home will give you the flexibility to make it your own. Apartment buildings and rental units often have guidelines and restrictions that limit your ability to paint your space, add preferred features, or even have pets.
Many benefits to home ownership
After reviewing the details of renting vs. buying a home in Albuquerque, our research revealed some significant long-term benefits of home ownership, including:
- Opportunity for investment as home values increase
- Flexibility to adapt the living environment to your lifestyle and needs
- Control over the timing and cost of maintenance, upgrades, and repairs
As you consider the benefits of renting vs. buying in New Mexico, be sure to look at the big picture and focus on the option that works better for you.
Are there other areas to consider when renting or buying a home in New Mexico?
Regardless of whether you rent or buy a new home in Albuquerque, you’ll find a variety of attractive locations in New Mexico. If you’ve decided to reap the benefits of homeownership, Hakes Brothers is a leading builder that makes it easy to tour communities, get special offers, and learn more about area amenities. As the state’s largest and most customer-focused homebuilder, Hakes Brothers offers communities in scenic, cost-effective, and growing locales throughout Albuquerque, Rio Rancho, and Los Lunas.