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Altura, Albuquerque: Rising Home Values and Ownership Amidst Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Altura, a neighborhood in Albuquerque, New Mexico, has experienced significant changes in its housing market and demographic composition over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rental costs, reflecting the area's economic patterns and local market conditions. The correlation between homeownership percentages and average home prices in Altura reveals intriguing trends. In 2013, the homeownership rate was 54%, with average home prices at $247,913. By 2022, homeownership had increased to 64%, while average home prices rose to $404,499, indicating a positive relationship between these factors. This trend suggests that as property values appreciated, more residents were motivated or able to purchase homes. The most notable increase in homeownership occurred between 2019 and 2020, rising from 59% to 61%, coinciding with a period of rapidly increasing home values.
Federal interest rates have played a crucial role in shaping homeownership trends in Altura. From 2013 to 2016, historically low interest rates of around 0.1-0.4% coincided with a slight increase in homeownership from 54% to 52%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, homeownership in Altura continued to climb, reaching 56% that year. This trend suggests that while low interest rates initially encouraged homeownership, other factors such as local economic conditions and housing market dynamics also played significant roles in driving homeownership rates upward.
Renter percentages and average rent prices in Altura have shown an inverse relationship to homeownership trends. In 2013, 46% of residents were renters, with average rent at $896. By 2022, the renter percentage had decreased to 36%, while average rent increased to $969. This trend indicates that as more residents transitioned to homeownership, the rental market became more competitive for the remaining units, potentially driving up average rent prices. The population fluctuations, from 1,808 in 2013 to 1,649 in 2022, may have also influenced these dynamics by affecting housing demand.
The most recent data shows that average home prices in Altura reached $417,655 in 2023 and further increased to $433,653 in 2024. This continued appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures suggest a robust housing market in Altura that has maintained momentum even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, average home prices in Altura are anticipated to continue their upward trajectory, potentially reaching around $500,000 by 2029. Average rent prices are also expected to increase, albeit at a slower pace, potentially approaching $1,100 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, Altura has demonstrated a strong trend towards increased homeownership over the past decade, accompanied by significant appreciation in average home values. Despite rising interest rates, the neighborhood's housing market has shown resilience, with continued price growth. The rental market, while shrinking in terms of percentage of residents, has seen modest increases in average rent prices. These trends collectively paint a picture of a neighborhood experiencing steady growth and increasing desirability for homeowners, with potential challenges for renters as the market becomes more competitive.
