New Mexico Luxury Homes: A Millennial’s Guide To Buying In Santa Fe

More Millennials in the U.S. will achieve high-net-worth status over the next several years, making luxury home-ownership a big part of the new “American Dream.”

A study predicted that baby boomers would transfer more than $68 trillion of inheritance to the younger generation by 2030.

In Santa Fe, New Mexico, most of the prospective homebuyers belong to the Millennial generation.

The National Association of Realtors (NAR) found that older Millennials (i.e., 31 to 40 years old) had the second-highest median income among homebuyers as of 2019.

For this reason, a luxury home purchase seems plausible, but there are certain nuances. 

The site of four world class museums and the Botanical Garden in Santa Fe, NM. Located on a hilltop off the Old Santa Fe Trail.

Compare Prices Of Luxury Homes In Santa Fe

While there’s no official value for properties to fall under the luxury category, the widely accepted figure costs at least $2 million.

The best thing about buying homes in Santa Fe, however, involves its value for money. You could spend less and still live on spacious grounds.

For example, a 4,300-square-foot property with six bedrooms and five bathrooms costs almost $1.4 million. If you’re downsizing to a smaller house, you could buy one with three bedrooms and four bathrooms for $1.2 million.

Investors should also consider Santa Fe because of its buoyant market. In August 2021, Barker Realty had expected a “20% appreciation and multiple offers on properties at all price points,” according to Klain.

The Santa Fe Association of Realtors noted that closed sales in 2020 reached an average of 798 properties. The average number of closed sales in 2021 increased 16.2% to 889 properties.

Pending sales also comprised 889 properties on average in 2021, up 8.4% from an average of 820 properties in 2020.

santa fe skyline with homes and mountains

While there’s no official value for properties to fall under the luxury category, the widely accepted figure costs at least $2 million.

Know More About Real Estate Taxes

Santa Fe County imposes different tax rates for residential properties every year, but the rates remain lower than in some counties.

Only eight other states collect a lower median real estate tax as of 2021, making New Mexico one of the places in the U.S. with the lowest property taxes.

If you buy a luxury home worth $2 million in Santa Fe, the estimated property tax would cost approximately $16,000. The amount represents roughly 0.80% of the home’s estimated market value.

Keep in mind that estimates continually change, so it’s best to use the local county’s tax calculator for updated rates.

Santa Fe, New Mexico, offers a variety of luxury properties, making it an attractive second – and d third-home option for California, Colorado, Texas and East Coast homebuyers.

Business, Jobs And Other Livelihood Sources

New Mexico established laws for the benefit of entrepreneurs and employees, which makes it easy to make a living in Santa Fe.

For example, female employees benefit from the state Fair Pay for Women Act that mandated equal wages among all workers. Barker Realty noted that only a few other states have enacted a statewide law on equal pay for women.

The biggest employers in Santa Fe include creative arts, hospitality, tourism and government.

The Los Alamos National Labs employs approximately 10,000 people from administrative personnel to engineers and scientists. You’ll find more tips about relocating near the LANL through this guide.

If you’re planning to move your business into Santa Fe, the city made it easier for entrepreneurs to acclimate by starting the Santa Fe Business Incubator (SFBI) program.

Start-up companies can join the program either as affiliate or resident clients. The SFBI allows affiliate clients to use in-house facilities such as meeting rooms without requiring them to rent offices.

On the other hand, resident clients occupy spaces within SFBI’s 30,000-square-foot facility. The program seeks to encourage more businesses to invest in Santa Fe, where expensive commercial space has been a deterrent for them.

The SFBI also provides freelancers and self-employed individuals with flexible workspaces. If you have a new business idea, the RUNWAY program can assist with turning it into reality.

Ready to invest in Santa Fe? Click here to find out more about Barker Realty, a family-owned firm established in 1984.

santa fe new mexico downtown aerial view

Santa Fe-based Barker Realty has been an integral part of the local community for four generations. (Barker Realty)

Choose The Best Real Estate Broker In Santa Fe

If we specify the definition of the best real estate broker in Santa Fe, it involves technology. The NAR revealed that 99% of Millennials browse the Internet to look for homes.

The long-term impact of the Covid-19 crisis, plus the emergence of remote work, further led Millennials to scout for properties without seeing them in person.

Tech-savvy brokers then gained an advantage in capturing potential customers from the currently biggest demographic in the U.S.

Those who are between 22 and 40 years old as of 2021 comprise the biggest group of U.S. homebuyers at 37%, according to the NAR.

Barker Realty, the leading brokerage in Santa Fe, recognized the need to offer the best customer service.

The firm has launched online tools such as a mobile app for a 100% digital homebuying process, even before the pandemic. Barker Realty offers technology tools for attending virtual breakthroughs, browse property listings and exchange messages online with your broker.

Barker Realty’s app supports Android and iOS users. The brokerage’s tech tools are a great resource for Santa Fe home-buyers and sellers.

Readers of Santa Fe Reporter chose Barker Realty as the city’s best real estate company for 2018, 2020 and 2021.

Author

Randolf Santos has covered different segments of the real estate industry since 2014. He worked at S&P Global Market Intelligence before joining Forbes Global Properties as a contributor. You can reach him at [email protected]

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