All Forum Posts by: Bobby Mcgrail

Due to incredibly low property tax rates, Santa Fe has become an attractive place for HNW to hold assets in real estate form with low carry costs. 

There are entire neighborhoods in more affluent areas that have very few full time residents, and the properties are not rented or Airbnb’s. They are diversification properties and 5th, 6th homes etc. 

Funny enough most of these ghost neighborhoods are usually predominantly owned by Californians and Texans.  

Santa Fe has very low supply, and without knowing more about your price range it’s difficult to say. 

But if you’re having difficulty affording now, your realtor is likely incorrect that prices will drop significantly with interest rates. Demand is too high, far too much of the property value was already being bought cash prior to low interest rates, and it is a historic capitol city after all. 

Overall macro US trends don’t really apply here. The high minimum wage forced out a lot of first time home buyers as those homes are now rentals for 4-5 coffee baristas etc. (check k-12 enrollment rate declines pre-covid). It’s become popular for middle class families to work in Santa Fe and live in Albuquerque or Rio Rancho while commuting on the train. 

If you’re looking for affordable family housing, on the south side there are some decent neighborhoods in the $350k+ range, but it’s not exactly “Santa Fe” to out of towners, and don’t expect a yard. 

The regulatory environment in Santa Fe is tough. The City Council is also fairly malleable to pressure, and uncertainty would be my largest concern regarding short term rentals. There is growing momentum/grumblings to further restrict/civically-monetize real estate in Santa Fe, especially for second homes, out of state buyers, and landlords. 

It's not minute by minute, but the landscape can change dramatically in a couple months.