A July 24 Mansion Global article highlights a new trend in the U.S. luxury housing market: livability now trumps sheer price. The Wall Street Journal/Realtor.com quarterly ranking, which evaluates the top 60 luxury metros on economic vitality and lifestyle metrics, shows that buyers increasingly prioritize quality of life, affordability and lifestyle amenities. While markets like St. Louis top the list thanks to relatively low prices, the big news is that Santa Fe, New Mexico broke into the top 10 for the first time.
What makes Santa Fe appealing
The New Mexico capital’s median luxury listing price of $2.7 million is modest compared with fellow resort towns such as Aspen or Palm Beach. Santa Fe has very little traffic, affordable prices per square foot and has a “small town with a big town feeling”—the city boasts world‑class restaurants, museums and a thriving arts scene. Buyers are drawn to its mild, high‑desert climate; summer temperatures rarely break 90°F and the town offers skiing in winter. This combination of outdoor recreation, cultural sophistication and everyday ease helps explain why second‑home buyers are choosing Santa Fe over flashier markets.
Economist Anthony Smith of Realtor.com says the ranking reflects a broader shift: buyers seek value beyond price, including quality‑of‑life factors not found in traditional luxury hubs. Santa Fe’s high “amenities” score—which includes shopping, family activities and cultural offerings—pushed it to the No. 2 spot for the second quarter. Wages in the area are relatively high, and despite a tight housing supply, inventory has grown in recent months without affecting prices. The market appears to be stable–prices have been flat after several years of appreciation, giving buyers more options.
Who’s buying?
Realtor.com data suggest that Santa Fe’s second‑home market is robust. About 9.2% of the city’s homes are vacation properties, well above the national average of 3%. Many buyers come from Texas, California and Arizona. In the second quarter, cross‑market listing views showed Maricopa County, Arizona accounted for 20.1% of out‑of‑state searches, Dallas County, Texas for 6.5% and Los Angeles County for 3.8%—evidence that southwestern and West Coast residents see Santa Fe as a cooler, more affordable alternative to home.
| Metric | Santa Fe | National/Other Reference |
|---|---|---|
| Share of vacation homes | 9.2% of homes are used as vacation properties | U.S. average is ~3% |
| Median luxury listing price | $2.7 million | St. Louis tops the ranking with $697,417 median price |
| Top out‑of‑state listing searches | Maricopa County, AZ: 20.1%; Dallas County, TX: 6.5%; Los Angeles County, CA: 3.8% | Reflects buyers migrating from hotter, costlier markets |
A safer, easier retirement choice
Some buyers have relocated to Santa Fe after wildfires and natural disasters in California, drawn by the city’s sense of safety and stability. Santa Fe offers an easier retirement option than Florida, which has grown expensive and crowded. Santa Fe’s blend of mild climate, manageable size and cultural richness makes it especially attractive to retirees and seasonal residents.
Takeaway
For those considering a second home or future retirement spot, Santa Fe offers a compelling mix: temperate weather, cultural depth, recreational opportunities and a comparatively accessible entry price. As the luxury housing market evolves toward valuing quality of life over price alone, this Southwestern city looks set to shine even brighter in the coming years.
