The Real Cost of Renting in Albuquerque vs. Owning in 2025

Let’s break it down—because those rental dollars are gone for good, while homeownership can turn them into an investment that grows over time.

Renting Cost Breakdown in Albuquerque

Right now, the average rent for a 3-bedroom home in Albuquerque is about $2,300 per month, which equals $27,600 annually. Over five years, that’s $138,000 spent on housing with no equity and no ownership benefits.

As the Albuquerque housing market continues to grow, rents are projected to rise even higher, making it more expensive to continue renting year after year.

What Buying a Home in Albuquerque Could Look Like

Let’s use a realistic scenario: you purchase a $345,000 home in Albuquerque with 4% down, a 30-year fixed mortgage at approximately 5.5%, plus taxes and insurance. Your expected monthly payment would look like this:

• Principal & interest: Approximately $1,950
• Taxes & insurance: Around $450
• Total: Roughly $2,400 per month

At first glance, this might seem a bit higher than renting. However, owning an Albuquerque home comes with significant long-term advantages you won’t get from renting.

Long-Term Wealth Building with Albuquerque Real Estate

1. Equity Accumulation

Each month you pay down your mortgage, building equity in your Albuquerque property. Over five years, you could create $30,000–$40,000 in equity from principal payments alone.

2. Appreciation Gains

If Albuquerque home values continue to rise at a steady 3% per year, your property could appreciate by $55,000 or more in five years.

3. Tax Benefits

Buying a home in Albuquerque also means you can take advantage of potential tax deductions on mortgage interest and property taxes, which helps lower your taxable income.

4. Stable Monthly Payments

Unlike renting, your principal and interest payments stay fixed for the life of your loan, providing predictable monthly expenses. Meanwhile, rents in the Albuquerque housing market typically increase every year.

The Bottom Line for Albuquerque Homebuyers

Yes, buying might cost you about $100 more per month, but it’s paying you back instead of your landlord. Over five years, that extra monthly investment could grow into $85,000+ in equity and tax benefits, compared to zero return on renting.

If you’re serious about building wealth and taking advantage of the opportunities in the Albuquerque real estate market, there’s never been a better time to explore your options.

Ready to Buy an Albuquerque Home?

If you want to learn more about buying a home in Albuquerque, finding the best mortgage programs, and securing your financial future, I’m here to help. As a trusted local real estate professional, I’ve guided many Albuquerque families into homeownership, and I’d love to do the same for you.

Call or text Waylon Chavez with ABQ Premiere Properties at 505-712-1340 to how hw can get you into a brand new home with zero money down!

Let’s make this the year you stop renting and start building real wealth through Albuquerque real estate.