THE CHALLENGES NEW MEXICANS FACE IN THE HOUSING MARKET: BUILDING HOMEOWNERSHIP OPPORTUNITIES By Daniela Freamon, New Mexico Mortgage Finance Authority In the previous year, the New Mexico Mortgage Finance Authority (MFA) conducted a comprehensive statewide study to assess housing needs and solidify an actionable plan to address the housing crisis in New Mexico. This plan, known as the New Mexico Housing Strategy, is the first-of-its-kind initiative for the state, identifying five key strategies to address the statewide housing needs. Its primary objective is to create homeownership opportunities for New Mexicans, particularly those in low- and moderateincome households. This study provided valuable insights into the challenges faced by New Mexicans aspiring to become homeowners, highlighting two primary obstacles: constraints on saving money for a down payment and rising home prices. Over the last decade, in most counties, gross rent has increased more than income growth, while apartment vacancy has remained historically low at 3.2%. This high demand, coupled with limited supply and insufficient income growth, has resulted in rising rent prices, making it difficult for renters to save for future homeownership. Additionally, between 2019 and January 2022, home 22
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