Albuquerque, New Mexico Home Affordability
The data below measures home affordability for the Albuquerque, New Mexico metropolitan area using price-to-income and price-to-rent metrics.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Albuquerque home affordability to other cities.
Albuquerque, New Mexico Home Price-to-Income Ratios
The current price-to-income ratio for Albuquerque is 3.75 as determined by March 2013 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Albuquerque HPI series. Median household income data for Albuquerque is from the Census American Community Survey.
Price-to-Income Dollar Ratio: Realtor
Price-to-Income Index Ratio: FHFA
Note: Index set to 100 in Q1 of 2000
Albuquerque, New Mexico Home Price-to-Income Ratio History
| Date |
Realtor (Dollar Ratio) |
FHFA (Index Ratio) |
|---|---|---|
| March 2013 | 3.75 | — |
| December 2012 | 3.78 | 120.7 |
| September 2012 | 3.78 | 121.2 |
| June 2012 | 3.78 | 119.8 |
| March 2012 | 3.78 | 120.6 |
| December 2011 | 3.73 | 123.1 |
| September 2011 | 3.73 | 122.5 |
| June 2011 | 3.73 | 121.1 |
| March 2011 | 3.73 | 124.1 |
Albuquerque, New Mexico Home Price-to-Rent Ratios
The current adjusted price-to-rent ratio for Albuquerque is 18.22 as determined by March 2013 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Albuquerque. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Albuquerque median contract rent data from the Census ACS.
Price-to-Rent Dollar Ratio: Realtor, Realtor Adjusted Rent
Price-to-Rent Index Ratio: FHFA
Note: Index set to 100 in Q1 of 2000
Albuquerque, New Mexico Home Price-to-Rent Ratio History
| Date |
Realtor (Dollar Ratio) |
Realtor Adjusted (Dollar Ratio) |
FHFA (Index Ratio) |
|---|---|---|---|
| March 2013 | 21.04 | 18.22 | — |
| December 2012 | 21.21 | 18.37 | 103.9 |
| September 2012 | 21.21 | 18.37 | 104.4 |
| June 2012 | 21.21 | 18.37 | 103.2 |
| March 2012 | 21.21 | 18.37 | 103.9 |
| December 2011 | 20.91 | 18.12 | 105.9 |
| September 2011 | 20.91 | 18.12 | 105.5 |
| June 2011 | 20.91 | 18.12 | 104.3 |
| March 2011 | 20.91 | 18.12 | 106.8 |
Albuquerque, New Mexico Home Rent-to-Mortgage Payment Ratio
The rent-to-mortgage payment ratio uses the adjusted rent for Albuquerque against a 100% loan-to-value mortgage (30-year fixed) for the median price home using Realtor home sales statistics. It's a lot like a cap rate, but I find it more appealing in ratio form. A ratio of 1.0 means that annual rent is equivalent annual mortgage payments. Values less than 1.0 indicate rents are cheaper and values greater than 1.0 mean mortgage payments are cheaper. Beware, taxes are not considered here. The rent-to-mortgage payment ratio for Albuquerque was 1.01 in March 2013.
Rent-to-Mortgage Payment Dollar Ratio: Realtor
Albuquerque, New Mexico Home Rent-to-Mortgage Payment Ratio History
| Date |
Realtor Adjusted Rent (Dollar Ratio) |
|---|---|
| March 2013 | 1.01 |
| December 2012 | 1.03 |
| September 2012 | 1.01 |
| June 2012 | 0.99 |
| March 2012 | 0.96 |
| December 2011 | 0.97 |
| September 2011 | 0.95 |
| June 2011 | 0.91 |
| March 2011 | 0.87 |
Albuquerque, New Mexico Inferred Affordable Mortgage
The inferred affordable mortgage value is determined by taking the median household income for Albuquerque, New Mexico and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from ACS median household income and average monthly mortgage rates.
Inferred Affordable Mortgage
Albuquerque, New Mexico Inferred Affordable Mortgage History
| Date | Inferred Mortgage |
|---|---|
| January 2013 | $253,509 |
| December 2012 | $255,421 |
| November 2012 | $255,421 |
| October 2012 | $254,462 |
| September 2012 | $250,682 |
| August 2012 | $247,594 |
| July 2012 | $249,131 |
| June 2012 | $245,163 |
| May 2012 | $241,583 |
| April 2012 | $238,368 |
| March 2012 | $237,215 |
| February 2012 | $238,948 |
| January 2012 | $238,079 |
1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data. ↩
Department of Numbers
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