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In Albuquerque, we are over 15,000 housing units short of the recommended housing supply needed, as quantified by The Urban Land Institute. Currently, there is less than one month’s supply of homes on the market for sale. Apartment inventory for sale is at an all-time low, and occupancy is the highest rate it has been in many years at 96% as shown by COSTAR.
Usually, we would see plenty of new housing being built. But we have a major impact on construction due to COVID-19, affecting labor and creating a shortage. Consequently, we are seeing higher lumber prices, a 40% increase over the past year, going from $600 per thousand board feet to over $1,000/TBF. Furthermore, we will see over a 20% increase in housing costs, driving average housing prices to nearly $300,000, making it more difficult for first-time home buyers, potentially denying them the opportunity altogether. Rental rates will al