For deep-pocketed home buyers in search of a second home, they’re increasingly looking to the high desert.
Instead of dealing with the humidity, hurricanes and skyrocketing prices of Florida, Santa Fe, New Mexico is offering a Western alternative that’s quietly gaining ground.
This quarter, the New Mexico capital cracked the top 10 of the Wall Street Journal/Realtor.com luxury housing market index for the first time, landing in the No. 2 spot — just behind St. Louis and ahead of many legacy markets traditionally associated with second-home prestige.
The index, released Thursday, evaluates high-end markets based not just on property values, but also on lifestyle perks, economic vitality and long-term growth potential.
“There’s not much traffic in Santa Fe and prices are still pretty affordable per square foot compared to other luxury markets such as Aspen, Palm Beach and the Hamptons,” Darlene Streit, a broker with Sotheby’s International Realty, told Mansion Global.
“We’re a small town with a big town feeling. We have a lot of world-class restaurants, museums and an arts and cultural scene.”
Indeed, that is true, as Santa Fe — which has been especially popular among film-industry retirees from Los Angeles — is also replete with art galleries and home to the Georgia O’Keeffe Museum. It’s also impossible to ignore its wide selection of restaurants and bars — the latter of which will always serve up strong margaritas, and chips and queso.
At a median luxury listing price of $2.7 million, Santa Fe isn’t exactly a bargain, but it’s proving to be a value compared to more saturated resort markets.
And unlike Palm Beach or Naples, it offers a dry, temperate climate that rarely reaches sweltering heights — and isn’t on a first-name basis with every tropical storm. However, those prone to altitude sensitivity may want to prep in advance, as Santa Fe is at a higher elevation than the city of Denver.
“We have a lot of Texans who tend to spend their summers here because we rarely break 90 degrees, compared to many of the metros in Texas,” Kyle Klain, co-leader at Barker Realty, told the outlet.
“Come the holiday season and the winter, they tend to come to those second homes and use them for their family gatherings for Christmas or an excuse to go skiing.”
The area’s appeal is especially strong among second-home buyers and retirees — particularly those coming from California, Arizona and Texas — many of whom are seeking stability and comfort without sacrificing access to nature and culture.
“We’ve had some people come because of the fires and different natural disasters that have happened in California,” said Streit. “It’s pretty stable in Santa Fe, we haven’t had, thankfully, a big natural disaster in town. Perhaps, it feels a little safer.”
According to Realtor.com, 9.2% of homes in Santa Fe are vacation properties, more than triple the national average.
And even as inventory has grown, prices have remained flat — something Klain says is new for a market that experienced steady appreciation over the past five years.
Anthony Smith, senior economist at Realtor.com, noted that Santa Fe’s strong “amenities” score played a major role in its jump up the rankings, thanks to its blend of cultural offerings and family-friendly appeal.
“Santa Fe really stands apart from other cities within New Mexico and is one of the biggest hidden gems within the Southwest,” he told Mansion Global. It’s also easy to access via its own airport, though that’s smaller than the Albuquerque airport located less than an hour away.
And while Florida was once the default choice for those looking to retire or relax in luxury, rising costs and climate volatility are sending buyers elsewhere.
“It’s perhaps an easier place to retire than some other places,” Streit said. “Florida used to be a great, easy, inexpensive place to retire, but it’s become fairly costly. Santa Fe is still a pretty good price in comparison, and it’s not overrun with people.”
