Santa Fe and Austin: Economic Growth and the American Way of Life

Founded in 1610, Santa Fe is the oldest state capital in the United States. Located at the foot of the Sangre de Cristo Mountains, the southernmost range of the Rockies, Santa Fe has become a refuge for famous actors and artists seeking to escape the spotlight. Originally populated by Native Americans and later colonized by Spain, the capital of New Mexico, nicknamed “the enchanted land,” today exudes a relaxed atmosphere where young people rub shoulders with affluent retirees.

"Santa Fe is a unique market; we don't have a lot of properties for sale. People come here to buy a second, third or even fourth home," explains Ginny Cerrella, a real estate agent in Santa Fe for 30 years. If we exclude the current slowdown in the real estate market due to the global economic downturn and the fact that many buyers are hesitant to take the plunge, the city continues to attract people. "These days, unless you're incredibly wealthy and don't care about the stock market because it has no impact on your standard of living, buyers are paying cash. We're seeing an influx of different types of buyers: Californians, Texans, people from Oklahoma, even Arkansas, not to mention New Yorkers, who have always made up the bulk of the Santa Fe market," she adds. “Prices here are not competitive, which is why many people are moving here, as taxes are low.” For example, a $10 million home in California is equivalent to a $4 million home in Santa Fe, or a $10 million estate would be equivalent to a $25 million to $30 million home in Los Angeles.