New Mexico’s housing challenge will affect where people can live, where employers can grow, and whether communities can attract and retain the workers they need. Housing New Mexico’s 2026 Housing Strategy projects that the state will need nearly 58,000 additional homes by 2045. At the same time, approximately 27% of New Mexicans ages 25 to 34 were living in the homes of older relatives in 2023, up from 17% in 2010. Those numbers point to a housing market where supply, affordability, and access continue to affect households across the state.
With those challenges in mind, the New Mexico Home Builders Association invited the two candidates for governor, Deb Haaland and Gregg Hull, to complete its 2026 Housing Policy Survey. The survey asked both candidates where they stand on the issues that most directly affect housing production in New Mexico.
Both Candidates Agree New Mexico Has a Serious Housing Challenge
One of the clearest findings from the survey is that there is little disagreement about the scale of the problem. Both candidates said New Mexico’s housing affordability and supply crisis requires urgent action and described housing as a top-tier legislative priority. Both also strongly agreed that the availability and affordability of housing affect New Mexico’s ability to attract workers, employers, and economic investment.
The candidates identified many of the same barriers to building more homes.
Both pointed to:
- Regulatory and permitting barriers
- Construction labor shortages
Haaland also identified high construction material costs, while Hull pointed to infrastructure costs as one of his top three barriers.
Lowering the Cost of Building a Home
One of NMHBA’s primary policy concerns is New Mexico’s Gross Receipts Tax on housing construction labor and materials. According to NMHBA’s policy platform, the tax burden can add more than $20,000 to the cost of a median-priced new home. Both Haaland and Hull strongly support NMHBA’s policy pillar calling for tax incentives for attainable housing.
Haaland said she would work to reduce Gross Receipts Tax on construction materials while structuring changes so local governments are not left absorbing the financial impact. Hull said he would work with the legislature to reduce GRT on labor and materials for attainable housing and structure the policy so savings reach buyers and renters.
Permitting Reform Could Be an Early Priority
If there is one issue where the candidates appear particularly aligned, it is permitting. NMHBA estimates that delays in permitting, plan approval, and inspections can add approximately $4,500 per month to the cost of a new home. In some cases, long or unpredictable timelines can prevent a project from moving forward altogether. Both candidates strongly support NMHBA’s proposal to streamline plan review, permitting, and inspections.
Housing Depends on Infrastructure
Even land that is available for residential development cannot necessarily support housing immediately. New neighborhoods depend on roads, water, sewer, power, broadband, and other infrastructure. When those costs fall almost entirely on the developer, they can make projects financially difficult or push additional costs into the final price of a home. NMHBA’s survey notes that this challenge is particularly significant in rural New Mexico, where infrastructure costs can prevent otherwise viable housing projects from moving forward.
New Mexico Needs the Workforce to Build the Housing
NMHBA identifies New Mexico’s construction workforce shortage as a primary constraint on housing production and supports additional investment in career technical education, trades training, pre-apprenticeship programs, interstate reciprocity, and licensing reform. Both gubernatorial candidates strongly support that policy pillar. Haaland said she would expand funding for Career Technical Education, strengthen trades education beginning in middle school, streamline occupational licensing, and expand interstate reciprocity. Hull also supports expanding career technical education and workforce training, pursuing inspection reciprocity with neighboring states, and reviewing licensing rules that increase cost without improving safety.
Who Pays for the Cost of Growth?
Impact fees and infrastructure financing are another part of the housing affordability conversation. When a new development creates the need for additional roads, utilities, or other public infrastructure, builders may be required to pay fees or fund improvements. Those expenses ultimately become part of the cost of the homes being built. NMHBA supports reviewing New Mexico’s impact fee statutes so fees are proportionate, transparent, and tied to demonstrated infrastructure needs. The association also supports alternative financing tools such as Public Improvement Districts and Tax Increment Development Districts. Both candidates support that pillar.
Continuing the Housing Conversation After Election Day
Both candidates said they are open to working with building-industry coalition partners on housing legislation during the 2027 legislative session. That creates an opportunity to carry the housing conversation beyond the campaign and toward practical solutions. Read the full 2026 Housing Policy Survey and learn more about NMHBA’s priorities for increasing housing supply and affordability across the state.