Many responded by adjusting their budgets, choosing different locations, or exploring alternative property types.
In 2018, the statewide median home price was around $200,000.
By 2022, it had climbed to about $306,000 a 53% increase.
Shutterstock
This price acceleration made homeownership increasingly difficult for typical buyers earning under $250,000.
Demand surged, including interest from out-of-state buyers seeking more space or lower-cost areas.
Homes sold quickly, and bidding wars became common in 2020-2021.
In 2018, there were almost 39,000 active home listings statewide.
By 2021, listings had plummeted to about 10,119 as demand outstripped supply.
Even as the market cooled in 2023, there were only around 14,421 listings still far below pre-pandemic levels.
Buyers had fewer choices and frequently competed for the same properties.
Even when sales slowed in 2022-2023, prices didnt drop much because of the persistent low inventory.
About 30% of households moving into New Mexico from 2021-2022 chose Bernalillo County (Albuquerque).
This influx of buyers from expensive markets added competition, especially in Santa Fe and Las Cruces.
Investors and second-home buyers also played a significant role in the market.
New Mexico, being relatively affordable and landlord-friendly, likely saw increased investor interest during the boom.
Taos County had about 20% of its housing stock being used as vacation homes as of 2018.
State data shows that about 65.7% of all occupied housing units are single-family detached homes.
Even as prices rose, single-family homes remained the primary choice for owner-occupiers.
Many moderate and lower-income households purchased manufactured homes during 2018-2023 since they tend to cost less than traditional houses.
New Construction vs.
Existing Homes
Buyers during this period faced choices between brand-new homes and existing older properties.
Homebuilders in New Mexico were active, especially around Albuquerques Westside, Rio Rancho, and Las Cruces.
Most of that increase happened during 2020-2022 when buyer demand surged.
A typical Albuquerque homebuyer in this period was a local working family or professional.
First-time buyers sometimes lost out to cash offers from investors or out-of-state newcomers.
Santa Fe Countys median was even higher around $798,000 at the end of 2022 for single-family homes.
The market became so expensive that by late 2022, sales actually plunged because there were few affordable options.
Despite the drop in sales, prices stayed high or even kept rising because inventory remained scarce.
Santa Fe and surrounding areas (like Taos and Angel Fire) have a large number of second homes.
Many houses are used as vacation getaways or short-term rentals.
Despite rising prices, Las Cruces remained more attainable for middle-income families than Santa Fe or Albuquerque.
Median prices in Carlsbad went from well under $200,000 to over $250,000 during this period.
Rapid price increases meant that down payments and loan qualification requirements rose significantly.
Community organizations also ran financial literacy and credit repair workshops to prepare renters for homeownership.
This was particularly evident in tourist destinations like Taos and Santa Fe.
Investment Property Trends
Investors target single-family homes, condos, or multifamily properties to rent out.
New Mexico, with relatively low home prices, attracted both small mom-and-pop investors and some larger companies.
Cities like Albuquerque saw institutional buyers purchase homes to convert into rental houses.
Some neighborhoods had a noticeable uptick in homes being bought by LLCs or out-of-town landlords.
While investors provided needed rental housing, they also added competition that pushed prices higher.
This was especially challenging for first-time buyers who often competed for the same modest starter homes that investors targeted.
In contrast to 2018-2023s boom, the earlier decade began with falling home prices and a slow recovery.
Around 2008-2011, New Mexico home prices fell or stagnated after the mid-2000s boom.
Through 2014-2017, prices rose slowly but steadily as the economy healed.
The 2008-2017 period was marked by foreclosures and distressed sales, particularly in the early years.
Many New Mexico families faced foreclosure or were underwater on mortgages.
The state implemented foreclosure prevention programs and legal changes to help underwater homeowners.
In contrast, 2018-2023 saw historically low foreclosure rates.
The story flipped to undersupply in 2018-2023.
By 2021, inventory was far below normal levels.
Prices climbed steeply, reaching record highs by 2023, straining affordability for families earning under $250,000.
