A July 2024 study by Root Policy Research found that Albuquerque has a significant shortage of units for low-income renters. It is estimated that Albuquerque is 13,000 to 28,000 units short of meeting the demand for housing.
Click to access albuquerque-region-2024-hna.pdf
The most recent Point-In-Time (PIT) Report for the number of unhoused PERSONS experiencing homelessness in Albuquerque is 2,740 broken down in 3 categories:
- Emergency Shelters: 1,289
- Transitional Housing: 220
- Unsheltered: 1,231
Mayor Tim Keller’s office estimates that there are upwards 5,000 people who are unhoused and who are living on the streets in Albuquerque.
Over the past two decades, rent and house prices have risen faster than income nationwide, meaning low-income Americans are getting priced out and spending, at times, more than 30% of their paycheck to keep a roof over their heads, according to the U.S. Treasury Department.
“SUPPLY-SIDE PROGRESSIVISM” FOR HOUSING SHORTAGE
Increasing the supply of housing is considered a critical component to addressing affordability. “Supply-side progressivism” for housing is a concept that argues restrictive regulations and outdated zoning and land-use laws impede development and inflate housing costs. By streamlining permitting processes, reducing fees and restrictions on various housing types, like duplexes and accessory dwelling units, also called “casitas”, and incentivizing denser development near public transit, the housing supply can be expanded.
ELEMENTS OF “SUPPLY-SIDE PROGRESSIVISM” FOR HOUSING
The main elements of “supply-side progressivism” have been described as follows:
Focus on regulatory reform. This emphasizes the loosening of restrictive zoning and land-use regulations that hinder residential construction.
Allow for diverse housing types in established developments. This is allowing a wider variety of housing options, such as apartments, duplexes, and accessory dwelling units and not exclusively detached single-family homes.
Streamlining permitting and review processes. Eliminating bureaucracy that cause delays that add costs and time to housing development.
Government subsidies dedicated to affordable housing. Using government subsidies(municipal, state or federal) and public-private partnerships to incentivize private investment in housing that serves the public interest, particularly for affordable housing.
ARGUMENTS FOR “SUPPLY-SIDE PROGRESSIVISM” FOR HOUSING
Three main arguments have been made for supply-side progressivism for housing:
- Increasing overall housing supply, including market-rate development, can indirectly alleviate pressure on affordable housing markets by reducing competition and potentially leading to price stabilization or even reduction.
- More efficient production of housing can contribute to broader goals like climate change mitigation and poverty reduction.
- Government subsidies for housing construction can be a valuable tool to increase supply, especially where local construction industries are underdeveloped.
ARGUMENTS AGAINST “SUPPLY-SIDE PROGRESSIVISM” FOR HOUSING
Four main arguments have been made against supply-side progressivism for housing:
- Focusing solely on private development might not sufficiently address the needs of the lowest-income households and could even result in gentrification in some areas.
- The argument that increased supply will simply “trickle down” to benefit everyone is overly simplistic and ignores the complexities of housing markets and speculation.
- Historical examples of using subsidies to incentivize private development have led to negative outcomes like displacement and segregation.
- Zoning reform alone will not be sufficient to address the root causes of high land prices, particularly in high-demand areas where wealthy renters may drive up the value of potential developments.
“SUPPLY-SIDE PROGRESSIVISM” FOR HOUSING COMES TO ALBUQERQUE
On August 18, the online news agency City Desk ABQ published a news articled with the headline “From red tape to rapid construction: Councilors embrace “supply-side progressivism” to remove red tape delaying housing spending” with the sub-headline “How Albuquerque plans to build more homes faster.” The article was written by City Desk ABQ staff reporter Jesse Jones.
The City Desk ABQ article reports that “supply-side progressivism” has arrive to Albuquerque in the form of passage of city council Bill O-25-95 sponsored by District 2 City Councilor Joaquín Baca, whose district includes downtown Albuquerque, and co-sponsored by District 6 Councilor Nichole Rogers who represents the South East Heights area and includes the International District. What is impressive is that Bill O-25-95 passed unanimously 9-0 at the August 18 City Council meeting.
Quoting in part the City Desk ABQ article:
“Council Bill O-25-95 creates targeted procurement exemptions for affordable and transitional housing projects using state capital outlay funds, including money from [NM Legilature] House Bills 2 and 450, with “critical deadlines.” The ordinance aims to simplify and streamline the process for getting housing built.
Rather than removing oversight, the measure introduces a “Request for Qualifications” process that can bypass traditional bidding when appropriate. Unlike competitive bids based on lowest cost, the RFQ evaluates contractors on “experience and qualifications,” according to city staff. Projects over $100,000 still require City Council approval, maintaining democratic oversight while cutting months of bureaucratic delays.
The ordinance … directs the Health, Housing and Homelessness and Municipal Development departments to review procurement policies and report back to the council within 30 days, identifying changes that would further streamline affordable and transitional housing development.
Instead of helping people afford high housing costs through subsidies, the supply-side progressive model aims to lower prices by increasing supply through regulatory reform.
When asked whether the ordinance prioritizes results over process—a central critique supply-side progressives make of traditional Democratic governance—Baca said, “100% yes, A, I’m a Democrat and B, you know, this is a series of changes.” He described a comprehensive approach to increasing housing supply through regulatory reform.
Baca explained how current procurement processes create delays:
“How it typically would work is the city would say, we’ve got this lump sum of money… And so then developers would apply, and there’d be a scoring process, ranking process, make sure they qualify, then they’d also be like the Development Commission. Oftentimes, you’d have to send it there for approval. It’s just a lengthy process to pick a winner, so to speak.”
The ordinance clarifies and streamlines this process, allowing projects to move forward without going through the full competitive bidding cycle, cutting months—even up to a year—off typical timelines.
Baca said the changes are part of a three-phase strategy that reflects systematic supply-side thinking. The approach started with “[ordinance] 177 that we just passed [in the] previous council [meeting], that will identify three different projects within the downtown and [other] MRA zones [and] laid out just how much they need in gap financing so that they can… get housing done. And so this is the Procurement Code update to allow for that. Then we’ve got another bill coming, which will be the affordable housing code.”
The link to read the full City Desk ABQ article is here:
https://citydesk.org/2025/08/19/from-red-tape-to-rapid-construction/
COMMENTARY AND ANALYSIS
Bluntly put, the term “affordable housing” is very misleading. It is a term way too often used by elected officials and politicians to simply declare a crisis with inflated numbers that shows there is not enough housing that allows the poor or low-income people to rent or buy a home and call their own. Housing prices and rental costs never come down. The more appropriate term that should be used is “subsidized” housing where it’s clear what is needed is subsidized funding for those who cannot afford to buy outright or rent and need assistance.
Albuquerque’s housing shortage is related to economics, the development community’s inability to keep up with supply and demand and the public’s inability to purchase housing or qualify for housing mortgage loans. The shortage of rental properties has resulted in dramatic increases in rents. It is clear that the City of Albuquerque and the state of New Mexico are suffering from a shortage of housing, but that does not mean it is all affordable housing.
The blunt reality is that it is not at all realistic for the City nor the State to try and attempt to solve the housing shortage on their own with nothing but government financing and construction. Government’s responsibility is to provide essential services, such as police protection, fire protection and utilities and not to directly compete with the housing industry. It’s the market forces that must be relied upon to get the job done when it comes to housing of all kinds.
The approach that the City, the County and the State has taken in the form of tax deferrals, subsidies and low interest loans to the private sector as incentives to construct housing are the reasonable and responsible approach to help solve the current housing shortage in the city and the state.
City, County and State government can help the private sector to build more housing by eliminating policies and zoning restrictions that unnecessarily drive-up housing costs so long as there is a preservation and respect for adjoining property owners rights and remedies. The enactment of Bill O-25-95 by the city council on a unanimous vote is not a panacea to solve the city’s housing shortage, but it is a major step in the right direction.