Albuquerque Updates Zoning Rules for Mixed-Use Development; Here's What Changes for Neighborhoods

Albuquerque's city council approved revisions to the city's zoning ordinance on Thursday, clearing the way for mixed-use residential and commercial projects in areas previously zoned for single-family homes or commercial use alone. The changes apply to corridors along Central Avenue, Montgomery Boulevard, and San Pedro Drive, where the city says it expects new apartment buildings, ground-floor retail, and offices to fill vacant or underused lots over the coming years.

The planning department had flagged housing scarcity and underutilized commercial zones as constraints on the city's ability to accommodate growth. Census data shows Albuquerque's population grew 3.2 percent between 2020 and 2025, but housing starts in that period averaged 1,840 units per year, below the 2,100 units annually the city says it needs to keep pace with demand and prevent further rent increases. The new code permits developers to build up to 6 stories on parcels along the three main corridors without seeking a variance, simplifying the approval process.

What Changes for Property Owners and Renters

Residents living near the affected corridors will see the most immediate effects. A two-acre vacant lot on Central near San Pedro, currently zoned for retail only, can now host a 120-unit apartment complex with street-level shops. The zoning change removes a permitting step that previously required individual review for any project exceeding three stories. Developers say this cuts 6 to 12 months from the timeline to groundbreaking, which could lower financing costs passed on to renters. Local housing advocates note that faster approvals do not guarantee affordable units, however. The code includes no affordability requirements; developers remain free to set rents at market rate.

Existing residents in single-family neighborhoods just off the corridors expressed concerns at council hearings about traffic and parking. The ordinance requires new projects to provide 1.2 parking spaces per residential unit and limits building heights to 35 feet one block away from the corridors, a buffer designed to ease the transition. City planning staff said the height limit at distance was a compromise to address livability concerns while still allowing higher-density development where the infrastructure exists to handle it.

Economic and Infrastructure Questions Ahead

The city's transportation department will study traffic patterns on Central, Montgomery, and San Pedro over the next 18 months. A 2024 traffic count showed 28,000 vehicles daily on Central between San Pedro and San Mateo, with congestion during peak hours already slowing commutes. City officials said they will reassess the corridors' capacity and, if needed, recommend street improvements or transit expansion to the council by December 2027. The bus rapid transit project on Central Avenue, scheduled to launch in 2028, was cited by planners as infrastructure that will support the new zoning.

The planning director noted that the code revision does not mandate development; it merely allows it. Some parcels may remain vacant or continue their current use if owners choose. City staff will monitor permitting trends quarterly and report to the council. The next scheduled review of the ordinance's effects is set for July 2028.

Albuquerque residents interested in projects proposed under the new code can submit public comments during the site plan phase, which remains subject to council or planning board review depending on project size. The city planning department's website lists pending applications and hearing dates.