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Albuquerque Leverages Transit-Oriented Development to Tackle Housing Crisis and Climate Goals

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  Published in House and Home on Thursday, November 13th 2025 at 0:56 GMT by KOB 4

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Building Apartment Projects Near Public Transit: A Dual‑Solution for Housing and Climate in the Southwest

In a city where the housing shortage has outpaced growth and carbon emissions continue to climb, Albuquerque’s latest urban‑planning initiative is turning a long‑standing problem into a dual‑win for residents and the environment. A recent KOB report explains how the city is harnessing the power of transit‑oriented development (TOD) to create new, affordable apartments close to light‑rail and bus hubs—an approach that not only eases the housing crisis but also helps curb climate‑change‑related emissions.

1. The Housing Crisis: A Quick Snapshot

Albuquerque’s rental market has seen rents climb at a rate far above inflation, with many low‑income families struggling to find affordable, stable housing. According to the city’s 2023 Housing Affordability Report, only 14% of rental units are considered affordable (rent less than 30% of a household’s income). The report cites three key drivers:

1. Population growth – Albuquerque’s population is projected to grow by 5% over the next decade, demanding more housing units.
2. Stagnant incomes – Median wages for entry‑level jobs have barely kept pace with rising rents.
3. Limited supply – Local zoning laws and a shortage of available land near downtown have restrained new construction.

The KOB article highlights how the city’s response to these challenges has taken a two‑pronged approach: increasing density and reducing reliance on cars.

2. Climate‑Friendly Urban Growth

Albuquerque’s Climate Action Plan 2035 (linked in the report) sets a goal of cutting greenhouse‑gas emissions by 40% by 2035. The plan emphasizes that “urban densification near transit can substantially reduce per‑capita vehicle miles traveled (VMT)”. The city’s transit system—a mix of light rail, rapid bus lines, and streetcar—serves over 200,000 riders daily. By building housing that is walkable and transit‑connected, the city hopes to shrink the “car‑based” portion of the population and lower emissions associated with daily commutes.

The article notes that a 1‑mile increase in transit access can cut VMT by up to 15% for average residents. When combined with new housing that uses greener building materials and energy‑efficient appliances, the potential for emissions reduction is substantial.

3. Transit‑Oriented Development: The Basics

Transit‑oriented development, or TOD, is a planning strategy that places high‑density, mixed‑use buildings within a short walking distance (typically 0.5–1 mile) of a public‑transport hub. The KOB piece describes how TOD can:

• Encourage public‑transport use by making it a convenient first‑ and last‑mile option.
• Reduce the need for parking and free up land for green spaces.
• Integrate affordable housing within vibrant, mixed‑income communities.

The article points out that Albuquerque’s “Urban Growth Boundary” (UGB) policy now includes a TOD framework that encourages developers to partner with the city for incentive zoning, density bonuses, and streamlined permitting.

4. New Projects Underway

The report highlights three major TOD projects that are currently in various stages of development:

The KOB piece quotes City Planner Maria Torres: “These developments are not just about adding units; they’re about creating complete communities—with schools, parks, and commercial space within a short walk.”

The Central Corridor Apartments, for instance, are slated to open in late 2026. The project includes a green roof, solar panels covering 10% of the building’s façade, and a shared community garden that residents can use to grow fresh produce. The developer, GreenBuild Corp., says that the affordable units are made possible by a combination of Low‑Income Housing Tax Credits (LIHTC), a state Housing Trust Fund grant, and a city density bonus of 20% for buildings that incorporate 25% affordable housing.

5. Funding and Incentives

A major hurdle for TOD projects is financing. The article explains how the city’s “Transit‑Impact Fee” (TIF)—a surcharge on new developments near transit—provides a steady revenue stream to offset infrastructure costs. The fee is earmarked for pedestrian and bicycle infrastructure, street improvements, and transit‑specific projects.

In addition, the city is partnering with the New Mexico Department of Transportation to apply for a $2 million grant that will fund bike‑share stations and electric‑vehicle (EV) charging kiosks at the TOD sites. These amenities will make the new neighborhoods more attractive to younger, tech‑savvy residents who prefer low‑carbon transportation options.

The KOB article links to the city’s Transit Impact Fee Portal, where developers can view the current fee schedule and the process for fee payment. It also directs readers to the Affordable Housing Program page on the Albuquerque Housing Authority’s website, detailing how families can apply for the newly available units.

6. Community Voices

The report features voices from a range of stakeholders:

• Resident Advocates: Sarah Lopez, a longtime resident of the South Valley, says, “I’ve watched the city grow, but it felt like we were being pushed out. Affordable housing near the light rail means I can stay in my neighborhood and get a good job without paying a fortune for a car.”

• Developer Insight: Mark Davis, CEO of GreenBuild Corp., notes that “the city’s incentives are critical. They reduce our development costs by up to 12% and make the economics of affordable units viable.”

• Transportation Officials: Transit Director Alex Ramirez says, “By building where we can, we are making the entire system more sustainable. When people live closer to the rail, they’re less likely to use personal vehicles, which cuts emissions and congestion.”

7. Challenges and Next Steps

While the benefits are clear, the article acknowledges potential pitfalls:

• Community Opposition: Some neighborhood groups fear that increased density could strain local services and alter the character of their communities. The city is hosting a series of public workshops to address these concerns and incorporate resident feedback.

• Construction Disruption: Building near transit stations can interrupt service. The city is working with the New Mexico Rail Authority to develop phased construction schedules that minimize service disruptions.

• Affordability Retention: Ensuring that units remain affordable long‑term requires strict compliance with LIHTC and state regulations. The city’s Affordable Housing Trust Fund will conduct annual audits.

In the near future, the city plans to roll out a pilot program that offers an additional 5% density bonus for projects that incorporate green building certifications such as LEED or ENERGY STAR. The KOB article links to a downloadable Green Building Incentive Brochure for developers.

8. The Bottom Line

Albuquerque’s move to build apartment projects near public transit is a pragmatic strategy that tackles two of the most pressing challenges of the 21st century—the housing affordability crisis and climate change—simultaneously. By creating dense, mixed‑income neighborhoods that are walkable and transit‑connected, the city is:

1. Increasing the supply of affordable units where demand is highest.
2. Encouraging sustainable transportation habits that cut vehicle miles and greenhouse‑gas emissions.
3. Fostering vibrant, inclusive communities that combine residential, commercial, and recreational spaces.

As the KOB piece concludes, “What we’re seeing here is a blueprint for how cities can do more than just build houses; they can build futures that are livable, equitable, and environmentally responsible.”

If you’re interested in the specifics of the projects or want to apply for affordable housing, the article’s links direct you to the city’s Planning Department and the Albuquerque Housing Authority for more information.