Why are there so many car washes in Rio Rancho?

If you spend enough time in Rio Rancho, you’ll eventually ask yourself, “why are there so many car washes in this city?”

Drive along Southern Boulevard, Unser or 528 and you’ll see them everywhere: long tunnels, bright vacuums, free towels and signs pushing unlimited monthly plans. For a city of just over 100,000 people, the car wash options can feel excessive. For example, there are four car washes within a 0.4-mile radius from my home in Corrales Heights, according to Google Maps.

Rio Rancho’s license activity report registers only seven car wash businesses. However, city officials note this count excludes smaller drive-thru car washes located at convenience stores or gas stations. These drive-thru facilities are grouped under the convenience store/gas station classification rather than being listed separately as car washes. The real number of car washes in and around city limits is closer to 20.

So why do developers keep building them?

The short answer: car washes make financial sense, especially right now.

Modern car washes are not the old corner hose-and-suds operations many residents remember. Today’s express washes rely on automation, subscriptions and scale. According to a 2025 report from real estate investment firm Yankee Capital Partners, once built, they need relatively few workers, minimal inventory and steady water access. Monthly memberships create predictable revenue, even when it’s not raining or dusty.

Those traits attract investors.

Across the country, private equity firms and large chains have poured money into the car wash industry. National brands like Mister Car Wash have expanded rapidly, buying smaller operators and opening new locations in fast-growing suburban markets. Rio Rancho fits that profile almost perfectly.

The city continues to grow, household incomes are relatively strong and most residents rely on cars for daily life. That makes Rio Rancho a safe bet for a business that depends on volume and convenience.

Zoning also plays a role. Car washes often fit easily into commercial corridors where retail demand hasn’t caught up yet. For developers, they can be easier to permit than restaurants or big-box stores and cheaper to operate than many other uses once construction is complete.

That combination creates a domino effect. One car wash proves profitable. Another developer sees the traffic and builds nearby. Soon, the corridor fills up.

Residents often ask whether Rio Rancho has “too many” car washes. There’s no official cap, and city officials generally don’t pick winners and losers in the marketplace. If a project meets zoning and utility requirements, it usually moves forward.

Still, saturation is a real concern. Industry analysts have warned that some markets may be overbuilt, especially as competition for memberships increases. Not every chain has thrived. Zips Car Wash, once a fast-growing national brand, filed for Chapter 11 bankruptcy after expanding too aggressively and taking on heavy debt.

That raises a question for Rio Rancho: what happens if the market cools?

An empty car wash is harder to reuse than many other commercial buildings. The infrastructure is specialized, the layout is narrow and water systems are expensive to retrofit. Residents have already raised concerns at public meetings about land use, water consumption and whether these projects crowd out other businesses.

Water use, in particular, draws scrutiny in a desert city. Operators say modern washes recycle most of their water and often use less than a driveway wash at home. That may be true, but perception still matters, especially as drought conditions persist across New Mexico.

The boom also highlights a broader issue in suburban development. Car washes, storage units and drive-through businesses often appear first because they are low risk for investors. But they don’t always create the walkable, mixed-use spaces residents say they want.

None of this means car washes are inherently bad. Many residents use them, and some locally owned operations have served the community for years. The question is balance.

Rio Rancho leaders face a familiar challenge: how to encourage growth that reflects community priorities without overregulating private development. For now, the market is driving decision-making.

So if another car wash pops up down the street, it’s not a coincidence or a conspiracy. It’s a bet — by investors, developers and chains — that Rio Rancho will keep growing, keep driving and keep paying monthly for a clean car.

Whether that bet pays off in the long run is something residents will be watching, towel in hand.