Like most other cities, Rio Rancho was hit hard by the housing crises in 2008. Housing prices declined each year from 2008 to 2011. Prices stabilized in 2012 through 2015 with home prices increasing by 1 or 2 percent per year. Rio Rancho experienced a 4.13% increase in home prices in 2016. You may wonder why home values are increasing here.
The city’s moniker is the “City Of Vision”. The city of Rio Rancho has been supportive of growth for a long time. The city’s pro growth attitude has made it the fastest growing city in New Mexico. This approach has led to a business friendly environment. The population has grown by 81% from 2000 to 2015. New businesses, jobs, and the increase in population is why homes in Rio Rancho are increasing in value.
Another reason why home prices are increasing is low inventory. Current inventory of homes has decreased by 46% since the summer of 2014. The number of homes sold in 2016 have increased by 34% since 2014. There are more home buyers and less homes for sale. Higher demand and lower supply is the main reason why homes are going up in value.
There were 3084 new homes built in Rio Rancho in 2005. The number of new homes built in steadily declined to 301 new homes in 2011. New homes built has been increasing each year since 2011 to a total of 568 new homes in 2016. The lack of new home construction has contributed to the lower supply. New homes are more expensive than existing homes. As more new homes are built, the home prices are increasing in value.
Located just north of Albuquerque, home buyers get more home for their money here. The latest data shows the average home price is Albuquerque is 24% higher than the average home price in Rio Rancho. Many home buyers work in Albuquerque and buy homes and live in Rio Rancho because of it’s lower home values. This adds to the increased demand for homes and increasing home values.
Presbyterian Rust Medical Center is a state of the art hospital located in southern part of the city. Phase one was completed in 2011 and phase two was completed in 2016. There has been tremendous commercial growth as a result of this new hospital. The hospital has created new good paying jobs and is another reason why home prices are increasing here.
There are many home owners that live in Rio Rancho and work in Santa Fe. The average home price in Santa Fe is 84% higher than the average home price in Rio Rancho. Many people working in Santa Fe cannot afford to purchase a home in Santa Fe. The commute to Santa Fe is less than one hour or a short commute on the Rail Runner commuter train. This increase in demand is driving homes prices higher.