# New Mexico

### Summary

New Mexico state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 57 units available that are affordable to them. The median rent in the state has risen by 34% since 2010, while median household incomes have grown by 27%. Currently, the state is short over 28,115 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

31.8% share of renter households

40.8% share of low-income households

43.3% share of rent-burdened households

### Renter population data

#### Renters vs homeowners

| Households          | % share |
|---------------------|---------|
| Renter households    | 253,762 | 31.8%   |
| Homeowner households  | 543,834 | 68.2%   |
| Total households      | 797,596 | 100.0%  |

#### Low-income renter households

| Households                  | % share  |
|-----------------------------|----------|
| Extremely low-income (≤30% AMI) | 36,989   | 14.6%   |
| Very low-income (31-50% AMI)     | 29,105   | 11.5%   |
| Low-income (51-80% AMI)         | 37,532   | 14.8%   |
| All low-income households (<80% AMI) | 103,626 | 40.8%   |

#### Rent-burdened households

| Share of income spent on rent | Households    | % share  |
|-------------------------------|----------------|----------|
| Moderately rent-burdened      | 54,940         | 21.7%    |
| 30.0–34.9%                   | 19,833         | 7.8%     |
| 35.0–39.9%                   | 15,199         | 6.0%     |
| 40.0-49.9%                   | 19,908         | 7.8%     |
| Severely rent-burdened       | 54,983         | 21.7%    |
| ≥50.0%                        | 54,983         | 21.7%    |
| All rent-burdened households  | 109,923        | 43.3%    |

### Affordable housing shortage

| Median household income      | Amount ($)        |
|-------------------------------|------------------|
| in 2010                       | 27,337           |
| in 2021                       | 34,837           |
| Increase (2010–2021)         | 27.4%            |

| Median rent                  | Amount ($)        |
|-----------------------------|------------------|
| in 2010                     | 574              |
| in 2021                     | 770              |
| Increase (2010–2021)       | 34.1%            |

### Affordable housing stock

| Units                        | Supply (current stock) | Demand (total units needed) | Shortage  |
|-----------------------------|------------------------|-----------------------------|-----------|
|                             | 37,979                 | 66,094                     | 28,115    |

57.5% supply/demand ratio

### Finance institutions

#### New Mexico Mortgage Finance Authority

New Mexico Mortgage Finance Authority

344 4th Street SW

Albuquerque, NM 87102-3206

**List of loan programs:**
- [LIHTC Program](https://housingnm.org/developers/lihtc)
- [Risk Share](https://housingnm.org/developers/rental/risk-share)
- [Bond Financing](https://housingnm.org/developers/rental/bond-financing)
- [HOME](https://housingnm.org/developers/rental/home)
- [National Housing Trust Fund](https://housingnm.org/developers/rental/national-housing-trust-fund)
- [New Mexico Housing Trust Fund](https://housingnm.org/developers/rental/new-mexico-housing-trust-fund)
- [Preservation Revolving Loan Fund](https://housingnm.org/developers/rental/preservation-revolving-loan-fund)
- [Primero Loan Fund](https://housingnm.org/developers/rental/primero-loan-fund)
- [Ventana Fund](https://housingnm.org/developers/rental/ventana-fund)
- [538 Guaranteed Rural Rental Housing Program](https://housingnm.org/developers/rental/guaranteed-rural-rental-housing-program)

### Shortage statistics for ELI & VLI renters

#### Housing news

##### How Fed Rate Cuts Impact the Housing Market

The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.

**Key Takeaways:**

- **Lower Mortgage Rates**: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- **Home Sales**: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- **Ongoing Supply Issues:** Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.