New Mexico’s Housing Mismatch: Affordable Homes Exist, but Not for the People Who Need Them Most

New Mexico’s affordable housing problem is partly about who lives in the homes that already exist, state housing officials said in an online presentation, Source NM reports.

An analysis from the New Mexico Office of Housing found that 65% of the state’s affordable housing is owned by people whose incomes could support pricier housing. Of about 136,000 occupied units affordable to people earning half the area median income or less, roughly 47,000 are owned by households earning above the median. Workforce Solutions Secretary Sarita Nair described the pattern as a normal market effect, not wrongdoing, according to Source NM.

The state is short at least 50,000 homes for households earning 30% to 150% of area median income, and about 60% of households in that range spend at least a third of their income on housing.

Building costs are a big reason. Lisa Huval, the office’s housing initiatives manager, told lawmakers a new apartment in an Albuquerque multifamily project costs about $348,000 to build, while staying affordable at 80% of median income would require a cost closer to $275,000.

The office is seeking nearly $97 million in the upcoming legislative session, including $50 million in developer grants and $30 million in capital outlay, Source NM reported.

Editor’s note: Updated Oct. 31, 2026. This story is now part of Daily Reports, our New Mexico news roundup, and was revised to credit Source NM’s original reporting. Learn how Daily Reports works in our editorial standards.

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