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Spotlight on: Santa Fe

Local HBA

By Gary Ehlert, EO of the Santa Fe Area Home Builders Association

Vital Stats:

• City of Santa Fe population:  62,000
• Santa Fe County population:  129,300
• Price of starter homes:  $140,000 and up
• Average home price:  $278,000
• 2002 housing permits:
  • 739 single-family units
  • 22 multifamily units

Outlook for 2003:
Between April 2002 and April 2003, we had a 15% increase in building permits. However, we dealt with five separate building moratoria, and one permitting program was a special retrofitting initiative for saving water.

Demand for new homes will probably always be strong here, due to the favorable climate, the availability of a slower pace of life, and the history and cultural amenities that Santa Fe has to offer. Historically speaking, the City of Santa Fe grows at about 2% annually, the county at about 4%. What is questionable is the city’s and county’s ability to find new sources of water to maintain economic sustainability amidst our current drought conditions.

Biggest source of concern for builders:
The biggest concern is water management and delivery. Building permits are directly contingent on the availability of new hookups and water sources.

Market trends:
Home values are going up! Buyers from around the country are realizing that Santa Fe is an ideal place to retire, or at least to have a home for two to three months a year. They’re escaping the rat race of the Silicon Valley or Chicago’s Golden Triangle to settle down here and enjoy life.

Remodeling is the wave of the future, along with high-end housing. Both continue to do exceptionally well.

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