Aug. 10—After years of pursuing a higher education, Noah Passaris received his degree in May and has since landed a high-paying internship with one of the state’s largest employers. But he still finds housing costs difficult to afford.
Passaris isn’t alone, as affordability continues to worsen across the country. The share of renters struggling to afford rent has increased by 3% since 2019, according to a 2025 report from the Joint Center for Housing Studies of Harvard University.
Affordability, as widely defined by the center and others, refers to a person’s ability to keep their housing costs below or no more than 30% of their household income. Incomes, the report said, have not kept up with rent or purchase prices, leaving millions of people cost-burdened.
In a nation where affordable living is becoming increasingly out of reach, Albuquerque stands out. The city recently ranked second in a Zillow report detailing the top five markets for new college graduates to live, work and rent in. This is the second year Zillow, one of the nation’s leading real estate marketplace platforms, has produced the report. Albuquerque has held the No. 2 spot both years.
The Zillow report considers factors including rental affordability, the average starting salary for college graduates, the share of rental listings on Zillow offering a perk, the size of the community in their 20s and the job market.
While Albuquerque’s perks and share of 20-somethings are on the lower side compared to other metros, overall affordability and a favorable job market score keep Albuquerque a top contender, according to the 2025 report and Zillow’s senior economist, Orphe Divounguy.
Austin, Texas, topped the list. Trailing Albuquerque were Dallas; San Antonio, Texas, and Charlotte, North Carolina.
Albuquerque’s ranking surprised few but satisfied fewer.
“While Albuquerque is affordable … by no means are people comfortably affording living accommodations,” said Passaris, a University of New Mexico graduate currently employed as an intern with Sandia National Laboratories.
The 2025 report noted Albuquerque’s average monthly rent as $1,614. The report also listed the average income for recent graduates in the city as $67,391 and the share of Albuquerque’s rental listings on Zillow offering a concession or perk — such as a reduced security deposit or free parking — as 41%.
“This is a market that presents a lot of opportunities and is relatively affordable,” Divounguy said.
The Zillow report follows another by Housing New Mexico that indicates only 13.5% of renters in New Mexico can afford to buy a home at the state’s median price of $345,000. Divounguy said the contrast between affordable renting and out-of-reach purchasing is consistent across the country.
That contrast comes down to supply and demand, according to Tego Venturi, a local Realtor and co-owner of Venturi Realty Group. Venturi said demand for both renting and purchasing has remained high and steady, but there is more demand for purchasing a home than there are homes.
Meanwhile, supply of apartments and other rentable housing has increased, easing rental market pressure while the purchase market continues to tighten, experts said.
“Albuquerque has seen significant growth in the multifamily housing sector over the past several years, with thousands of new units brought to market. This new development has helped stabilize rental rates,” said Alan LaSeck, executive director of the Apartment Association of New Mexico.
Zillow’s most recent data for Albuquerque indicated an average rent of $1,650 for August, up $50 from the same time last year but still 21% below the national average.
“Albuquerque continues to be what I would call one of the under-the-radar cities. We don’t get a lot of attention nationally, but housing actually is more affordable here than some of the other markets in our region,” Venturi said.
“Not to say that we don’t have some affordability challenges,” Venturi added. “Our affordability is not great — on either rental or purchase — but it’s better than some of the other markets.”
Passaris said he can see how Albuquerque is considered more affordable — and maybe attractive — compared to other cities, but without wages to match and a rising cost of living, the “affordable” label still feels like a stretch, he said.
ADP, a human resources and payroll solutions company, found that wages for New Mexicans increased by 5% from July of last year to this year, but the median annual salary for the state was $45,400.
Anthony Rice, another recent UNM graduate, said Zillow’s data is likely skewed by the high full-time, early career salaries of recent graduates coming from UNM’s STEM or business programs. He estimates the median early income for Albuquerque graduates is likely lower.
“In my experience, wages have not kept up with housing prices. While housing prices in the city rise, wages do not follow, or at least do not at the same rate, which makes renting hard for students and recent graduates,” Passaris said.
Passaris lives in a townhome, splitting a monthly rent of $1,500 — not including utilities and other fees — with a roommate. Rice also splits his monthly rent of $1,313 with a roommate.
For Rice, finding a cheaper spot was a priority — but with the cheaper rent came sacrificing amenities, proximity to campus and the general feeling of safety.
Divounguy agreed that financial strain persists even in the most affordable markets. He said affordability is a challenge for many people and that “more is needed” to make homeownership and renting more attainable.
In addition to new construction, zoning reform will be key to more affordable housing, said Jordon McConnell, communication chair for Strong Towns ABQ, a nonpartisan, nonprofit housing advocacy group.
Such reform, including passing zoning laws that allow for multiple housing types and mixed uses or scrapping building height limits and parking minimums, is part of what helped Austin drop its average rent by 7% from last year, McConnell said.
“Those are the types of policy changes we advocate for in Albuquerque,” McConnell said. “I think this is a really great ranking that we should be proud of, but I think there’s also that warning that that ranking could be under threat if we’re not making some changes now.”
Divounguy said he is optimistic about the future of housing and real estate investment in Albuquerque, citing the emergence of tech and aerospace sectors in the city.
But with Intel and Sandia National Laboratories — two large landing spots for recent college graduates — reducing their workforce this year, Rice is a little less optimistic, especially for young folks who don’t want to rent forever.
Passaris agreed.
“I think Albuquerque should not yet feel proud of this recognition because there is still much more work that can be done,” Passaris said.