The New Mexico Legislature created the New Mexico Finance Authority (NMFA) in 1992 as a mechanism for accessing low-cost capital for home ownership in New Mexico cities, counties and certain departments of state government. The MFA administers hundreds of millions of dollars each year among 40 programs that range from homeless services to homeownership. It includes new housing, down payment assistance and home rehabilitation. The agency works with hundreds of partner organizations that represent developers, realtors, landlords, nonprofits, for-profits, local governments and tribal governments. Twenty-five of its partners provide homeless services.
On July 24, 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 the major findings of the 2024 MFA Housing Needs Report deleting graphs and figures:
NEW MEXICO’S DEMOGRAPHIC AND ECONOMIC 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.
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%.
43.2% 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.”
EDITORS NOTE: Home price increases surpass wage growth, which results in difficulty achieving homeownership.
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
“43.2% of houses in New Mexico were built prior to 1980, which indicates a high need to preserve the stock of existing homes.
15.3% 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.
3.3% of households are overcrowded.
1.0% of households do not have sufficient plumbing facilities and 1.0% lack complete kitchen facilities.”
NATIVE AMERICAN HOUSING CONDITIONS CREATE HEALTH RISKS
“Housing condition issues are exceptionally high in Native American or Tribal areas. Lack of complete plumbing, complete kitchens, sub-standard heating, electrical, and design is more widespread and severe in the homes of Native Americans than the state overall.
These conditions create health risks, such as household air pollution and extreme heat and cold. Poor housing conditions are associated with increased risk of contracting asthma and cancer, increased chance of housing-related injuries, and even poorer cognitive development in children.”
NUMBER OF NEW MEXICO HOMELESS INCREASES BY 50%
The total number of homeless individuals in New Mexico increased by 50% from 2022 to 3,842 in 2023, based on HUD’s Point in Time (PIT) count. While PIT count data is one of the main measures of homelessness, it does not completely capture the extent of homelessness.
PIT count estimates cover the number of people in homeless shelters, transitional housing and unsheltered locations during a single night in January. However, for example, many families and children staying in hotels, living in their vehicles or staying in other places not meant for shelter are unlikely to be included in the PIT count.
The number of sheltered homeless individuals totaled 2,242 and the number of unsheltered homeless individuals totaled 1,600.
New Mexico’s homeless population copes with different needs:
- 8% (1,031) of the state’s homeless population are families with children.
- 2% (240) are unaccompanied homeless youth.
- 7% (256) are veterans.
- 1% (1,694) are chronically homeless individuals (1,694).
Chronically homeless individuals have experienced homelessness for at least one year and have a severe physical or mental health condition. This segment of the homeless populationis likely to live in unsheltered locations.
The link to full, unedited housing needs assessment is here:
https://drive.google.com/file/d/1SzAnXnO_nHI5ef3onk_5tPKhKrIaIQLc/view
NMFA Executive Director and CEO Isidoro Hernandez said this about the MFA housing needs report:
“The housing needs assessment findings provide us with a reality of what the affordable housing necessities are in our state. … Along with our partners, we have assisted over 500,000 families across the housing spectrum for close to 50 years. By signing House Bill 2 earlier this year, Governor Michelle Lujan Grisham appropriated $50 million to support the New Mexico Housing Trust Fund. This funding allows us to continue our pursuit to do even more to help New Mexicans get into safe, affordable homes.”
FUNDING APPROVED
At its May and June meetings, the New Mexico Mortgage Finance Authority Board of Directors approved a $50 million allocation, along with the $34.6 million in state fiscal year 2025 severance tax bond funding. The breakdown includes:
- $26.6 million to create more housing.
- $20 million for down payment assistance.
- $10 million to preserve existing affordable housing.
- $1 million to create stable housing environments.
- $27 million in reserve to use based on particular demands.
MFA Executive Director Hernandez said this about the allocations:
“Whether it’s building homeownership and wealth, creating more housing, preserving existing affordable housing or creating stable housing environments, our efforts and programs directly align with the key findings in the housing needs assessment report. … I appreciate our board of directors, the governor and legislators for their support and funding for these much-needed programs in our state.”
The full housing needs assessment is available here.
The links to quoted and relied upon news sources are here:
https://www.koat.com/article/monday-breaks-record-for-hottest-day-ever-on-earth/61688417
https://citydesk.org/2024/homelessness-has-increased-by-50-affordable-housing-is-scarce/
NEW BRAND: HOUSING NEW MEXICO
On July 24, it was announced that the MFA has been rebranded after almost 50 years in operation. The name Housing New Mexico will now be used. The new name is intended to better describe the agency and keep confusion to a minimum. The MFA is often mistaken for the New Mexico Finance Authority (NMFA), which was created by the Legislature in 1992 to finance infrastructure projects. The NMMFA headquarters and its 128 employees are located at 344 Fourth St. SW in Downtown Albuquerque. 2023
POINT-IN-TIME (PIT) REPORT
The POINT-IN-TIME (PIT) REPORT is the annual process of identifying and counting individuals and families experiencing sheltered and unsheltered homelessness within a community on a single night in January. The PIT count is done in communities across the country. The PIT count is the official number of homeless reported by communities to the federal Department of Housing and Urban Development (HUD) to help understand the extent of homelessness at the city, state, regional and national levels. This year’s PIT count occurred from January 31st through February 3rd.
In the last week of August, 2023, The New Mexico Coalition End Homelessness released the 2023 “Point In Time” (PIT) survey on New Mexico homelessness. The link to review the entire 31-page 2023 PIT Report with graphs and charts is here:
https://www.nmceh.org/_files/ugd/ad7ad8_6d9bf66e3a5d407eaad310cc44ecaf82.pdf
The total number of the unhoused in the city of Albuquerque dwarfs in sure numbers the total number of the unhoused in the state of New Mexico. For this reason, the 2023 Point In Time Survey release by the New Mexico Coalition End Homelessness first reports on the unsheltered and sheltered people experiencing homelessness in Albuquerque. It then reports on the unsheltered and sheltered people experiencing homelessness in the State referred to as the Balance of the State.
ALBUQUERQUE UNSHELTERED DATA BREAKDOWN
HOUSEHOLDS COUNTED IN ALBUQUERQUE
The total count of HOUSEHOLDS experiencing homelessness in Albuquerque on January 30, 2023 was 1,980. (Households include those with or without children or only children.) The breakdown is as follows:
- Emergency Shelters: 864
- Transitional Housing: 187
- Unsheltered: 928
TOTAL HOUSEHOLDS: 1,980
PERSONS COUNTED IN ALBUQUERQUE
The total count of PERSONS experiencing homelessness in Albuquerque on January 30, 2023 was 2,394 broken down in 3 categories.
- Emergency Shelters: 1,125
- Transitional Housing: 292
- Unsheltered: 977
TOTAL PERSONS: 2,394.
ALBUQUERQUE’S 2009 TO 2023 STATISTICS
Total number of PEOPLE counted during the Albuquerque Point-in-Time counts from 2009 to 2023 to establish a graphic trend line for the period are as follows:
- 2009: 2,002
- 2011: 1,639
- 2013: 1,171
- 2015: 1,287
- 2017: 1,318
- 2019: 1,524
- 2021: 1,567
- 2022: 1,311
- 2023: 2,394
The data breakdown for the 2023 Albuquerque UNSHELTERED was reported as follows:
- 790 (81%) were considered chronically homeless
- 78 ( 8%) were veterans
- 387 (40%) were experiencing homelessness for the first time
- 150 (15%) were homeless due to domestic violence
- 488 (50%) were adults with a serious mental illness
- 436 (45%) were adults with a substance abuse disorder
ALBUQUERQUE’S UNSHELTERED COUNT OVER TIME
The 2023 PIT report contains the count of people experiencing UNSHELTERED homelessness in Albuquerque during the years 2009-2023 to establish a graphic trend line for the period. The yearly numbers are as follows:
- 2011: 658
- 2012: 621
- 2013: 619
- 2014: 614
- 2015: 659
- 2016: 674
- 2017: 706
- 2018: 711
- 2019: 735
- 2020: 808
- 2021: 940
- 2022: 940
- 2023: 1,125
BALANCE OF STATE UNSHELTERED DATA BREAKDOWN
The 2023 PIT survey provides the estimated number of people experiencing unsheltered homelessness in the Balance of State. (Households include those with or without children or only children.)
HOUSEHOLDS COUNTED IN BALANCE OF THE STATE
The total count of HOUSEHOLDS experiencing homelessness in the Balance of State on January 30, 2023 was 1,075 broken down as follows:
- Emergency Shelters: 452
- Transitional Housing: 58
- Unsheltered: 565
TOTAL HOUSEHOLDS: 1,075
INDIVIDUALS COUNTED IN BALANCE OF STATE
The total count of PERSONS experiencing homelessness in the Balance of the State on January 30, 2023 was 1,448.
- Emergency Shelters: 665
- Transitional Housing: 160
- Unsheltered: 623
TOTAL PERSONS: 1,448
BALANCE OF THE STATE 2009 TO 2023 STATISTICS
Following are the number of unsheltered people counted in the BALANCE OF THE STATE for the odd number years 2009-2023 to establish a graphic trend line:
- 2009: 1,473
- 2011: 1,962
- 2013: 1,648
- 2015: 1,342
- 2017: 1,164
- 2019: 1,717
- 2021: 1,180
- 2022: 1,283
- 2023: 1,448
BALANCE OF STATE UNSHELTERED DATA BREAKDOWN
- 315 (51%) were considered chronically homeless
- 68 (11%) were veterans
- 219 (35%) were experiencing homelessness for the first time
- 99 (16%) were homeless due to domestic violence
- 78 (13%) were adults with a serious mental illness
- 81 (13%) were adults with a substance use disorder
TOTAL DATA BREAKDOWN: EMERGENCY SHELTERS, TRANSITIONAL HOUSING, UNSHELTERED
Relying on the total numbers found for the number of HOMELESS, those in Emergency Shelters, those in Transitional Housing, and those Unsheltered contained in the 2023 PIT Survey, the following is calculated:
- The total number of HOMELESSas reported by the 2023 Point In Time Survey is 3,842 calculated as follows:
- 2,394 persons counted HOMELESS in Albuquerque
- 1,448 persons counted HOMELESS in Balance of State
- 3,842 TOTAL PERSONS COUNTED AS HOMELESS
- The total number persons in EMERGENCY SHELTERSreported by the 2023 Point In Time Survey is 1,790 calculated as follows:
- 1,125 persons counted in emergency shelters in Albuquerque
- 665 persons counted in emergency shelters Balance of State
- 1,790 TOTAL PERSONS IN EMERGENCY SHELTERS
- The total number persons in TRANSITIONAL HOUSING reported by the 2023 Point In Time Survey is 452 calculated as follows:
- 292 persons in transitional housing counted in Albuquerque
- 160 persons counted in transitional housing in Balance of State
- 452 TOTAL PERSONS IN TRANSITIONAL HOUSING
- The total number persons reported UNSHELTEREDby the 2023 Point In Time Survey is 1,500 calculated as follows:
- 977 persons counted unsheltered in Albuquerque
- 623 persons counted unsheltered in Balance of State
- 1,500 TOTAL PERSONS COUNTED UNSHELTERED
COMMENTARY AND ANALYSIS
The 2024 MFA Needs Assessment Report includes a number of indicators that are very sobering when it comes to the state’s housing realities. Those harsh realities include the following:
- The state’s median household income increased 22.2% from $48,059 to $58,722 from 2018 to 2022 while the median home price increased 53.05% from $200,000 and bloated to $306,000.
- Renters also face daunting increases. The median monthly gross rent in 2022 was $966, an increase of 7.7% from 2021 and an increase of 16.7% from 2018. Almost 44% of renters and 28% of homeowners are cost-burdened, meaning households pay more than 30% of their income on housing costs.
- New Mexico’s Homeless Coalition point-in-time count reportshows an increase in homelessness over a three-year span in Albuquerque. The point-in-time count report reveals 1,152 people experienced homelessness in 2021 compared to 1,311 in 2022, a 13.8% increase from the year before. In 2023, the report revealed 2,394 people experienced homelessness, which more than doubled its original numbers with an 83% increase from 2022. 2024’s report is not available.
- There is clearly and urgent need in New Mexico for affordable housing. There are an estimated 15,000 to 20,000 people in New Mexico who experience homelessness each year. There is a shortage of 32,000 low-income rental housing units, and there are more than 40,000 housing units across the state in need of rehabilitation, such as a functioning kitchen or adequate plumbing.
New Mexico’s financial reserves have reached upwards of 52% of ongoing state spending resulting in a financial cushion of nearly $4.4 billion. The financial cushion is being fueled by the incredible oil and gas boom and along with strong consumer spending generating gross receipts tax revenues. The windfall is expected to continue. If there ever was a time for the state to afford making a difference in affordable housing now is the time.
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