NEW MEXICO (KRQE) – In the past seven years, rent in New Mexico has gone up by 60%. That’s double the national rate of increase, and in Santa Fe, it’s even higher, with an increase of 75% during the same period.
Affordable housing still a concern in Santa Fe
According to Alex Horowitz, project director of housing policy at The Pew Charitable Trusts, the primary driver of this trend is a severe lack of new housing construction. “New Mexico is the only state in the Southwest that has not passed state laws to allow more homes,” Horowitz said.
Horowitz presented findings from Pew’s latest study to the Economic and Rural Development Committee, revealing that New Mexico’s housing inventory has shrunk to just half of what it was in 2018. This shortage gives landlords a competitive edge, allowing them to raise rents significantly.
He emphasized that low- and middle-income residents are the most affected by the housing crisis. However, they also benefit the most when the housing supply increases. “The benefits are largest to low-income households because it takes the pressure off the housing stock. They don’t have to compete for their own homes with middle-income residents,” Horowitz explained…