Dirt to Development: Trends Shaping the Land Market

Across the country, land sales remain active, though buyers are far more selective. Elevated construction costs and tighter lending environments are pushing developers to analyze deals with greater precision. Industrial, retail, and housing groups continue to lead the charge, seeking sites with strong infrastructure, favorable zoning, and a clear alignment with their end users. In the industrial space, data center developers, manufacturing and renewable energy groups are moving quickly—driven by AI expansion, corporate sustainability goals, and federal incentives. Meanwhile, the ongoing national housing shortage continues to spur residential development, with retail following close behind to provide goods, services, and entertainment near growing rooftops. Entitlements, utility access, and municipal cooperation have become critical in pushing deals across the finish line.

In Albuquerque, similar trends are unfolding. While land activity continues, headwinds like rising construction costs, extended approval timelines, and tighter lending are slowing some deals. That said, momentum remains consistent—especially around the Unser Gateway and Rust Medical Center in Rio Rancho, where a new grocery concept, build-to-rent communities, apartments, and retail centers are breaking ground. Homebuilders remain active across the metro, pushing westward and continuing to secure sites for current and future demand. Residential land activity is especially notable in northwest Rio Rancho, Albuquerque’s west side (north and south of I-40), and down to Los Lunas. Affordable housing developers are also playing a key role, helping meet a critical need in the market.

While today’s land market demands sharper underwriting and patience, opportunities are still being seized by groups who are prepared and forward-thinking. With infrastructure improvements underway and buyer interest still strong, the foundation for future growth in New Mexico remains consistent.

Written by:  Genieve Posen, NAI SunVista Senior Advisor

For more information on land development opportunities for retail, office, industrial and housing projects, please contact Genieve Posen.