Southern New Mexico Economic Indicators

Second Quarter 2024

Employment in Las Cruces grew above trend in the second quarter; however, unemployment ticked up in June and was higher than the state and nation. Growth in median home prices and apartment rents has subsided, but prices remain high. Homebuilding activity ticked down in June but remained strong compared with early 2023. Trade through the Santa Teresa Port surged in June.

Labor market

Las Cruces payrolls grow strongly in second quarter

Payrolls in Las Cruces grew an annualized 3.5 percent (700 jobs) in second quarter 2024 (Chart 1). The strongest growth was seen in government, education and health, and professional and business services. Government employment rose an annualized 12.9 percent (646), education and health services increased 8.8 percent (378), and professional and business services grew 9.4 percent (170). Construction and mining employment contracted 11.4 percent in the second quarter (-126).

Year-over-year job growth in Las Cruces has been moderate at 1.8 percent (1,400 jobs) from June 2023 to June 2024. Government, manufacturing, and professional and business services grew the most over the past year. Government payrolls expanded by 5.6 percent (1,140), while professional and business services grew 5.7 percent (416). Manufacturing employment posted the fastest growth, 9.2 percent.

Unemployment increases

The unemployment rate in Las Cruces ticked up to 4.5 percent in June—the highest level since May 2022 (Chart 2). New Mexico’s unemployment rate similarly increased to 3.9 percent in June. Both the metro and state are following a national trend of rising unemployment. The U.S. unemployment rate in June was 4.1, percent which ticked up to 4.3 percent in July. National unemployment is at its highest level since late 2021.

Residential real estate

Listings tick down; prices remain steady

The number of active listings in Doña Ana County fell to 649 in June after having consistently increased since January (Chart 3). This is lower than the prepandemic (2017–19) average of 811. Nominal median list prices were $367,000 in June. Home prices in Las Cruces spiked in late 2021 and have risen slowly since. Year-over-year growth in nominal prices was only 3 percent in June.

Rent growth slows

Average apartment rents for Las Cruces were $890 in July 2024, below $1,382 for Albuquerque and $1,915 for the U.S (Chart 4). However, year-over-year rent growth in Las Cruces of 3.6 percent in July outpaced both Albuquerque (2.7 percent) and the nation (2.7 percent).

Homebuilding activity remains solid

The average number of permits filed over the past three months for new single-family homes in Las Cruces was 54 (Chart 5). This is down slightly from a recent high of 62 in January. Permitting activity for new-home construction in Las Cruces has rebounded from a slump in early 2023 and is around 2019 levels.

Cross-border trade

The three-month moving average value of imports passing through the Santa Teresa border crossing surged to $2.3 billion in June (Chart 6). Exports also increased to $1.4 billion but have consistently lagged imports. Santa Teresa is an important port of entry for goods produced across the border in Mexico, and New Mexico officials are pushing to further expand port activity. The affordability of industrial space in southern New Mexico has partly fueled growth at the port.