D
eep-pocketed home buyers seeking a second home are increasingly turning to Santa Fe, New Mexico, as an attractive alternative to traditional luxury markets. The city's mild climate, rich cultural scene, and affordability have earned it the No. 2 spot on the Wall Street Journal/Realtor.com luxury housing market index, surpassing legacy markets like Palm Beach and Naples.

    Santa Fe offers a unique blend of world-class amenities, including art galleries, museums, and restaurants, without the high prices and crowds found in other resort destinations. The median luxury listing price is $2.7 million, making it more affordable than Aspen or the Hamptons. The city's dry climate and low humidity also make it an attractive option for those seeking to escape tropical storms.

    The area's appeal extends beyond its natural beauty, with many second-home buyers and retirees drawn to Santa Fe's stability and comfort. "It feels a little safer" compared to other areas prone to natural disasters, says Darlene Streit of Sotheby's International Realty. With 9.2% of homes in Santa Fe serving as vacation properties, the city is catering to those seeking a second home that offers both relaxation and access to culture.

    Santa Fe's downtown area is charming and walkable, with a strong sense of community. The city's airport provides easy access for visitors, although it's smaller than the Albuquerque airport nearby. As Florida becomes increasingly unaffordable and prone to climate volatility, Santa Fe is emerging as a hidden gem in the Southwest, attracting buyers from Texas, California, and Arizona who value its unique blend of affordability, amenities, and lifestyle.

    The city's strong "amenities" score, according to Realtor.com senior economist Anthony Smith, played a significant role in its jump up the rankings. Santa Fe's stability, combined with its natural beauty and cultural offerings, make it an attractive option for those seeking a second home that offers both relaxation and access to culture.