Mackenzie Bishop, co-owner of Abrazo Homes and lifelong New Mexican, says challenges in the state’s housing market and business environment are prompting the residential builder to explore expansion opportunities outside New Mexico. While the company, founded in 2010, remains committed to its home state, Bishop described New Mexico’s “anti-growth philosophy” as a barrier to long-term business viability.

Speaking about the frustrations he has encountered over two decades of homebuilding in the Land of Enchantment, Bishop cited factors such as stagnant population growth, high taxes, rising housing prices, affordability issues, and bureaucratic delays in permitting processes. These obstacles have fueled discussions within the company about entering markets in other states, particularly Texas, where population growth, a robust job market, expedited permitting, and the absence of a state income tax present attractive conditions for builders.

Earlier this month, Bishop shared on social media that launching operations in Texas is a “near weekly temptation” for the company. However, he emphasized that Abrazo would not be abandoning New Mexico but rather expanding its portfolio to include new markets. “We’re married to this place and its success, but sometimes it’d be nice to not be wholly dependent on it,” Bishop said.

The potential move reflects broader concerns among New Mexico builders, who are facing similar challenges. Hakes Brothers, a Las Cruces-based construction firm, is reportedly considering relocating its headquarters out of state, although the company declined to comment publicly.

Bishop noted that he and co-owner Brian McCarthy have previously been anchored in New Mexico by family ties and local connections, which continue to be important. Nonetheless, the ongoing economic and regulatory environment in New Mexico, combined with the imperative to sustain their business and support employees and families over the long term, is driving them to evaluate strategic growth outside state borders.

Abrazo is currently researching opportunities in Texas, as well as Utah and Arizona, and is engaged in discussions with partners in those regions. Any expansion beyond New Mexico would be a gradual, multiyear process.

“I still believe in New Mexico, and we’re going to continue to be part of the solution and move things forward,” Bishop said. “But just from a tactical, business standpoint, we have to wear a different hat and try to figure out how we can ensure the long-term solvency of our business.”