The real estate market continues to be hot in Rio Rancho and Albuquerque even with interest rates exceeding 5% in April for the first time since 2011. The higher interest rates will create more housing inventory for prospective buyers, but will reduce the amount of eligible or firsttime homebuyers. Rio Rancho still maintains a far lower cost of living than Dallas, Phoenix, Denver, Colorado Springs, Las Vegas, Austin and almost every other city in the Southwest. The affordability of this metro area has led to a wide number of people relocating to Rio Rancho.
We often look at Rio Rancho having great schools and low crime to attract people to our area but it now goes further with the value of our paychecks and housing. The median price for a single-family home in our area has increased to $335,000 which is an increase of over 19% in the past year. As a comparison, similar areas in Dallas, Phoenix, Denver, Colorado Springs, and Austin are all well over $420,000 or more than 25% higher than our metro area. Our lower housing costs in Rio Rancho is making it a destination for relocations as people sell their homes in higher priced markets. The challenge is this is also driving our home prices up as out of area money is arriving to the market and thus limiting our options for first-time buyers and affordable homes to purchase or rent. The Rio Rancho continues to
be the fastest growing city in New Mexico with the fast growing communities like Los Diamantes, Enchanted Hills and Mariposa.
Meanwhile, another highlight to Rio Rancho is our lower cost of living versus other cities in Texas, Colorado, Arizona, Utah, Nevada and California. The cost-of-living index for Rio Rancho is 6% below the national average. In comparison, Dallas and Colorado Springs are 9% over the national average while Phoenix, Salt Lake, Austin and Denver are all over 25% higher than Rio Rancho. This means a paycheck goes much further in Rio Rancho than any of the cities or states reviewed.
Overall, cost of living, housing, schools and low crime continue to make Rio Rancho a destination to call home.