Predictions for the New Mexico housing market in 2023

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ALBUQUERQUE, N.M. – A forecast shows higher interest rates are expected to lead to a 3% decline in house sales this year in Albuquerque.

However, home prices and rental rates are still expected to go up. Elected leaders are calling this a housing crisis.

Now, there are some big plans in the works to address this problem, and it extends beyond affordable housing.

With a huge budget surplus, the question is – how will tax dollars be used following this next legislative session?

During Gov. Michelle Lujan Grisham’s second inauguration speech, she dropped some hints – all while the mayor of Albuquerque is pushing for his own type of change.

“In the coming years with a new focus on funding to match, we will fight the scourge of homelessness that afflicts so many New Mexicans who are suffering,” said Lujan Grisham.

A new focus for the governor – in her second term – will be an area that has recently not been a priority for the state.

After the last legislative session, Mayor Tim Keller said the biggest disappointment from the Roundhouse was the lack of support to help the homeless.

“Building serious momentum on affordable housing can be hallmark of the next four years, and frankly, I predict it will be,” said Lujan Grisham, as she looked directly at Javier Martinez.

Javier Martinez is the legislator expected to take over as speaker of the House, the position with the power to move legislation forward. 

“Look, Albuquerque’s in a housing crisis, and this crisis exists no matter what politician talks about it, and it’s not going to go away anytime soon,” said Keller. 

Keller says Albuquerque needs between 19,000 and 30,000 more homes.

“To basically adequately house at every level, even like big houses,” said Keller. 

He’s pushing the Albuquerque Housing Forward program. The city is calling it an emergency initiative to “spur access to, conversion and construction of new housings.”

“We’re either going to have a bunch of suburbs and have sprawl and we’re going to end up being Phoenix-like, or we’re going to have a healthier, vibrant city that has, you know, things like Casitas for our grandparents to stay in, and that’s the choice that is before our city in the next six months,” said Keller. 

The city is pledging to work on legislative initiatives in the upcoming session.

The governor says she’ll do the same.

“And I am looking forward to working with the next New Mexico Legislature to do just that,” said Lujan Grisham. 

Along with housing, the governor is pushing for more resources to be dedicated to behavioral and substance abuse health care.