During the 2024 and the 2025 legislative sessions, the New Mexico Legislature dedicated more than $300 million to various housing-related measures at different agencies, including revolving loans for builders, down-payment assistance and anti-homelessness programs. The Legislature specifically earmarked $110 million in the 2025 year’s budget of the $10.8 billion budget for affordable housing and homelessness assistance programs statewide. That came after lawmakers appropriated more than $20 million for such programs in the previous year.
On August 19, 2025, in a news release, Democrat Governor Michelle Lujan Grisham announced that housing funds the state Legislature approved during the 2025 legislative session would be distributed. According to the news release, the funding includes:
- More than $80 million for housing and homelessness projects in the Albuquerque area
- More than $11 million for housing and homelessness projects in the Las Cruces area
- More than $13 million for housing projects in other parts of New Mexico
- $7.8 million for projects to support students experiencing homelessness at public schools in Albuquerque, Las Cruces and Santa Fe
According to the news release, the newly created Office of Housing within the New Mexico Department of Workforce Solutions (DWS) is responsible for distribution of $120 million of the funding beginning in August. DWS Secretary Sarita Nair said the funding will go toward “proven strategies” for tackling the housing crisis. What this means is focusing on building more housing, preventing homelessness and ensuring that people who move into homes after living on the street have “wrap-around support and thoughtful interventions”.
According to the news release, the governor’s office is expecting the initial funding will result in the creation and support of more than 1,500 affordable housing units, more than 1,500 shelter beds, more than 150 transitional housing units for people leaving shelters and prevention programs to help more than 3,500 families avoid falling into homelessness. It will also support street outreach with support services for people who live on the streets,
According to recent estimates, the state lacks more than 32,000 housing units. Rents and homelessness have increased far beyond the national average in recent years, especially in Albuquerque, the state’s biggest city.
SPECIFIC DISTRIBUTION OF FUNDING ANNOUNCED
The 2025 New Mexico Legislature approved upwards of $140 million for housing programs during the legislative session. $83 Million of the $140 Million is earmarked for projects in the Albuquerque area for housing and the unhoused.
On August 26, City, Bernalillo County and State Officials held a press conference to announce that $60 million of the $80 million will be allocated for housing and homelessness projects in the Albuquerque. The $80 Million will be dedicated to getting 1,000 unhouse people off the streets by July, 2026.
The roughly $80 million will fund 10 projects in Albuquerque, including seven affordable housing developments and expansions to homelessness facilities and programs. Of the millions in funding, 23% will benefit homelessness projects, including prevention, and 77% will go toward housing.
More than $20 million of the funding will be used for expansion of the city’s Gateway network of five shelters and services to include the following funding:
- $5 million for a 204-unit shelter for seniors
- $6.5 million for Gateway West, which serves 660 people nightly
- The Gateway and Youth Homelessness Facility, a wraparound services hub with locations at 5400 Gibson SE and 7440 Jim McDowell NW, will collect more than $16 million to expand programs, resources and the number of beds. The Gateway Young Adult program will provide an “appropriate space for young adults” to receive services and a path to permanent housing.
Another $42.85 million of funding is earmarked to be spent as follows:
- $17.85 million for the purchase of the Poblana Place apartments in Bernalillo County for an 84-unit workforce housing complex for seniors and displaced youth. This project will receive the most from the roughly $80 million is the Poblana Place Apartments, a “move-in ready” 84-unit complex that Bernalillo County is in negotiations to purchase with the purpose of adding workforce housing and support services for seniors and displaced youth. The project, located at 2818 Fourth NW, is set to receive nearly $18 million.
- $1.5 million for a new mixed-income development Sombra del Oeste in southwest Albuquerque, adding 72 homes;
- $10 million to convert the iconic but vacant Wells Fargo building in downtown Albuquerque into the 13-story Lomas Tower, which will mean 100 residents for 140 people who earn less than 70% of the area median income (in Bernalillo County, that’s $44,800 for a one-person household);
- $13.5 million for West Mesa Ridge A and B in the 700 block of Coors Boulevard, which will include 128 three-bedroom homes for residents earning from 30% to 80% of the area median income. The West Mesa Ridge multifamily facility under construction at 701 Coors NW and set to house up to 448 people, will receive more than $10 million.
For Bernalillo County, the funding is expected to deliver 1,062 housing units and 925 beds for people experiencing homelessness. Bernalillo County Commissioner Barbara Baca said this:
“We need this for our community. … Many families are making impossible choices between housing and food and too many people are without shelter. We all see it. Housing is not just about buildings, however. It’s about the people, our children, our seniors and our working families. When we invest in housing, we are investing in a safer neighborhood, better educational outcomes and (a) stronger economy for all.”
Funding for “gap financing ” to private developers to ensure affordable housing complexes get built is also included. One such project, the Tierra Linda Projects, will receive $6 million to complete the financing for a 240-home development to house roughly 840 low-income residents in what is now a dirt lot.
The rest of the initial allocation of the $120 million includes roughly $11 million for housing and homelessness projects in Doña Ana County, more than $13 million for housing projects in other areas of New Mexico, and $7.8 million to support families experiencing homelessness in school districts in Albuquerque, Las Cruces and Santa Fe.
In total, city, county and state officials say the investments will create and support more than 1,500 affordable housing units, more than 1,500 shelter beds and programs, more than 150 transitional housing units and more than 3,500 families through prevention programs. Taken together, the new funding will enable leaders in Bernalillo County and Albuquerque to help 1,000 people find stable shelter within the next year.
ELECTED OFFICIALS REACT
Governor Lujan Grisham said this about the funding in a statement:
“When families don’t have to worry about keeping a roof over their heads, everything else becomes possible. These investments reflect our commitment to tackling housing and homelessness with urgency and compassion.”
During the August 26 press conference announcing the distribution of funding, New Mexico House Speaker Javier Martínez (D-Albuquerque) said he and his colleagues “took a lot of heat” for requesting such a hefty investment for Albuquerque. Speaker Martínez said the city needs the lion’s share of the new housing funding because it is the epicenter of the state’s housing crisis. Speaker Martínez said this:
“Here is where the services are for communities. … And so I was not shy, and my House colleagues were not shy, about calling that out and making sure that we delivered money that could be used and executed today. …These are investments that are targeted for working families, so that they can afford their housing. These are investments for people out on the streets, so they can access transitional and supportive housing. … These are big-time ideas, big-time investments, and this is just the first step. … [W]hy is Albuquerque getting this special pot of money? Well, here’s why. Over 70% of our unhoused population comes from other parts of the state. Why? Because here is where the services are for communities.”
During the August 26 press conference, Albuquerque Mayor Tim Keller highlighted the challenges with affordable housing shortages, addiction and homelessness in Albuquerque. Keller said this:
“We have national trends, whether it’s a housing shortage in general across America, or whether it is challenges around fentanyl and addiction and unhoused and homelessness, and then we have our own Albuquerque challenges. … But this is a step-change answer to those issues. …
We need help now because these are tough times. … There is no one answer to all these issues I just laid out. You actually have to attack the problem across the spectrum, whether it’s rehab and prevention, whether it’s treatment. … I think this is the first comprehensive approach to this.”
On August 26, State GOP Chair Amy Barela said this in a statement:
“[T]hese investments are designed to lift up families, create stability, and strengthen our communities. … From new workforce housing at Poblana Place Apartments, to senior housing at Juniper Flats, to expanded youth homelessness facilities, these projects prove what can be accomplished when taxpayer dollars are used wisely to improve lives.” Barela continued by saying “our taxpayer dollars must be protected” and cautioned that threatened federal funding cuts — like those currently leveled at the state by the Trump administration — could imperil such investments. Barela said this:
Links to quoted or relied upon news sources are here:
https://www.abqjournal.com/news/article_38b5041d-c3e9-4f66-b8e5-660fa8d37a47.html
CITY’S HOUSING SHORTAGE
According to recent estimates, the state lacks more than 32,000 housing units. Rents and homelessness have increased far beyond the national average in recent years, especially in Albuquerque. Albuquerque’s count of unhoused individuals has increased by 108% since 2017, a rate more than two-and-a-half times the national average, according to the Pew Charitable Trusts, which also reports median rents in the city increased 46% between 2019 and 2024. Overall, Albuquerque lacks about 20,000 housing units to meet the demand.
A recent 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. 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
Meanwhile, Mayor Tim Keller’s office estimates that there are upwards 5,000 people who are uhoused 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.
Albuquerque is struggling with being able to provide sufficient “affordable housing” which is a major contributor to homelessness. A 2024 Denver-based Root Policy Research report, entitled “Albuquerque Region Housing Needs Assessment” found a significant shortage of units for low-income renters. The report found that residents are spending more than a third of their monthly income on housing and that occupied units, such as apartments and single-family homes, often had more residents than rooms available.
The link to a quoted or relied upon news source is here:
STATISTICS PRESENTED
Over the past 5 years, the city has supported the construction of 2,224 housing units, 1,021 of which are subsidized for low to moderate income tenants. On average, the city has been producing between 200 and 250 affordable units per year, for about 450 units total. The city now has a goal of producing 1,000 affordable housing units per year. To reach that goal, the current housing output will have to at least quadruple.
Joseph Montoya, the city’s Deputy Director of Housing, reported the following statistics to the city council:
- Nearly half of renters are rent-burdened.
- Rents have increased 20% since 2021.
- The median house price is $360,000.
- The city’s current waiting list for help with housing is about 800 people long. The city needs to produce 1,500 new units a year to keep up however only 200-250 units are being produced.
In addition to the initiatives already in place, Montoya outlined additional strategies the city would like to use. Those strategies include:
- Expediting planning approvals for affordable housing developments,
- Opening request for proposals, known as RFPs, to “for-profit” as well as nonprofit developers.
- Creating a loan fund for homeowners building affordable accessory dwelling units.
- Align the city’s RFP process with the Metropolitan Redevelopment Agency and to create funding packages for developers.
NEW MEXICO MORTGAGE FINANCE AUTHORITY REPORT ON HOUSING NEEDS
On July 24, 2024 the New Mexico Mortgage Finance Authority (NMFA) officials reported on the findings of the state’s most recent housing needs assessment. It outlined how $84.6 million in state funding will be allocated to address those needs. The New Mexico Housing Needs Assessment is a comprehensive annual report produced by New Mexico Mortgage Finance Authority. It comprises an array of housing indicators describing affordable housing needs in the state.
MAJOR FINDINGS OF REPORT
Following is an edited version of the major findings of the 2024 MFA Housing Needs Report deleting graphs and figures:
NEW MEXICO’S DEMOGRAPHIC PROFILE
“There are 2,112,463 people residing in New Mexico and 812,852 households in the state. New Mexico’s population grew 1.3% over the last five years, a rate which lags its neighboring states: Utah (9.7%), Nevada (7.5%), Texas (6.6%), Colorado (6.2%), and Arizona (5.3%).
New Mexico’s working population, defined as persons 16 years and older, is primarily employed in education and healthcare, at a rate of 25.7%. This rate is consistent with national trends.”
NEW MEXICO’S ECONOMIC PROFILE
- The poverty rate in New Mexico’s poverty is 18.3%, higher than the national rate of 12.5%.
- New Mexico’s median household income is $58,722, which is lower than the national median household income of $75,149.
- The percentage of the population living with a disability in New Mexico totals 34.4%, which is higher than the national rate of 26.4%.
- The rate of households with seniors, which are defined as households with one or more people 65 years of age or older, in New Mexico is 33.8%. Nationwide, the rate of households with seniors is 11.5%.
- Many New Mexico senior households are low or moderate income with 41.8% earning less than $40,000 annually. The national rate is 37.7%.
- The Homeownership rate in New Mexico is 70.9%, which is higher than the national rate of 64.8%.
- 2% of New Mexican households earn less than $50,000 annually. This rate for the country is 33.8%.
- Renters in New Mexico, like the rest of the nation, are more likely to be low-income compared to homeowners.
- The state’s median household income increased from $48,059 to $58,722, or 22.2%. from 2018 to 2022.
- The median home price increased by a whopping 50% from $200,000 to $306,000.”
HOMEOWNERSHIP MARKET AND DEMOGRAPHICS
“In New Mexico, the median sale price of a home in 2023 was $323,230 which increased 5.6% from the prior year. As home price increases outpace wage growth, the ability to achieve homeownership becomes more difficult.
Inequities in homeownership persist with respect to race:
White households comprise 37.8% of homeowners but 35.6% of the population.
- Hispanic households account for 35.2% of homeowners but 49.8% of the population.
- The relative rates for Native American households is 5.2% of homeowners and 8.5% of the population.
- Black or African American, Asian and households of two or more races are underrepresented among homeowners.”
RENTAL MARKET DISPARITY
“In New Mexico, the median monthly gross rent in 2022 was $966, which increased 7.7% from the previous year and 16.7% from 2018.
The state’s renter median income increased from $34,837 to $37,408 or 7.4% from 2021 to 2022, which lagged behind rent price increases.”
DECLINE IN HOUSING PERMITS
“Single-family detached homes comprise the majority of New Mexico’s housing stock, followed by a high percentage of mobile or manufactured homes. The number of building permits for residential construction issued in 2023 decreased by 2.2% from the prior year. Despite this dip in the pace of construction, the decades-long trend of depressed building has abated in recent years, with a 71.7% increase from 2019 to 2023.”
DECLINE IN AFFORDABLE HOUSING
“Cost-burden among renters (43.9%) is higher than homeowners (28.4%), largely due to lower income levels among renters. A decreasing supply of affordable housing options, for both renters and homeowners, coupled with increasing demand as the state’s population grows, threatens to worsen cost burden rates.”
PRESERVATION AND REDEVELOPMENT NEEDS
2% of houses in New Mexico were built prior to 1980, which indicates a high need to preserve the stock of existing homes.
- 3% of homes are mobile or manufactured housing units. Mobile homes built before 1976 do not meet HUD’s Manufactured Home Construction and Safety Standards, which are federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. Thus, HUD only allows for the replacement of these units rather than rehabilitation.
- 3% of households are overcrowded.
- 0% of households do not have sufficient plumbing facilities and 1.0% lack complete kitchen facilities.
COMMENTARY AND ANALYSIS
Simply put, the term “affordable housing” is about as misleading as it gets. 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.
The housing shortage crisis declared 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, Countu 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 further 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. One area of reform to help the housing industry would be to address and reduce the states gross receipts tax on construction materials in order to bring down construction costs.