It’s intimidating to choose the right town or even the right state to buy vacation rental property. If you invest in an area that is on everyone’s radar, you risk buying property for much more than it is worth. But if you search too hard for the next breakout market, you’ll introduce too much uncertainty to your financial portfolio.
If you are seeking a stable market to buy a rental property, Santa Fe, New Mexico should be on your shortlist. Of course, Santa Fe attracts tourists across the country and the world looking for Southwestern charm. But as the capital of New Mexico, it is also a hub for local businesses and state government. Government employees who regularly need to visit the state capital are ideal repeat renters for your future property.
Santa Fe’s status as a hub is a title it earned long ago. “Santa Fe has always been such an important meeting center,” says Jaime Way, gallery director at Shiprock Santa Fe. “It was the capital of trade between the three cultures. The Anglo traders, the Hispanic culture, and, of course, the Native American culture.”
Now, tourists mostly visit Santa Fe to take in the views and shop. USA Today named Santa Fe its #1 Best Destination for Shopaholics. Their list of the top 10 places in Santa Fe to shop includes book stores, fine art, rugs, pottery, and even a cooking school. Of course, many visitors will also be looking to grab a sharp cowboy hat to take home.
Rented.com includes Santa Fe on its list of The 150 Best Places To Buy
In it’s vacation rental report, the website estimates an annual rental income of $75,000 in Santa Fe. This is a far higher estimated income than nearby markets like Tucson ($30,000) and Phoenix, Arizona ($41,500). Capitals of bordering states such as Denver, Colorado and Salt Lake City, Utah did not make Rented.com’s list.
AirDNA gave the market an overall grade of A. They also emphasized the demand for rental property in Santa Fe and the low fluctuation in that demand between low and high tourist season. The most exciting and scary thing about vacation rental properties is that there are thousands of options. Any place in the country (and even the world) could be your new second home. Because real estate is a long term investment, you should find a destination that is not just hot now but is here for the long haul. That is why Santa Fe, New Mexico deserves to be on your radar.
Explore all of your options on HighFlyRE and determine which vacation market fits your needs.