Recently, there has been an increase in requests from clients considering a move to Arizona or Texas to also look into Albuquerque. This is due to the perception that it is relatively undervalued, and it seems necessary to confirm this with actual figures.

According to the Zillow Home Value Index, the current representative home value in Albuquerque is about $349,000. Considering it was around $260,000 at the beginning of 2021, this represents an approximate increase of 34% over the past five years. When looking at the entire metro area, the value is around $352,000, showing no significant difference.

Examining the yearly trends, from 2021 to 2022, home prices rose sharply due to pandemic-related migration demand and low interest rates. However, as interest rate hikes began in late 2022, the upward trend clearly slowed down in 2023. From 2024 to 2025, a stable trend of around 1% is expected, indicating that the market has entered a phase of consolidation.

Considering that the national average increase during the same period was between 35% and 45%, Albuquerque's growth is somewhat lower. Compared to neighboring Sun Belt cities like Arizona and Nevada, which saw increases of over 50%, Albuquerque can be classified as a region with a smaller price increase.

Factors influencing this trend include a stable but not explosive employment base centered around Sandia National Laboratories and Kirtland Air Force Base, as well as a slower rate of population influx compared to larger cities in Texas and Arizona.

Looking ahead, it seems likely that a gradual trend will continue rather than a sharp rebound. However, prices remain relatively low compared to the national median, suggesting that the appeal of being undervalued will likely persist for some time.

For Korean households looking to reduce living expenses after retirement or for investors prioritizing rental yields, areas like Albuquerque, which have moderate price increases but lower entry prices, may be worth considering. However, it may be more realistic to approach this with a focus on rental income rather than expecting significant capital gains at the time of sale.