Introduction
Santa Fe, New Mexico, often referred to as The City Different, boasts a unique blend of culture, history, and natural beauty. Its rich heritage, vibrant arts scene, and stunning landscapes make it a highly sought-after destination for travelers from all over the world. Amidst this backdrop, the short-term rental market, particularly through platforms like Airbnb, has flourished, offering visitors a more personalized and immersive experience during their stay.
Market Statistics
According to data from Chalet, there are currently 1,937 active short-term rentals in Santa Fe. With an average daily rate of $317.30 and an occupancy rate of 64%, these properties generate an annual revenue of $61,400 on average. This indicates a robust market, with an average gross yield of 10.85%, making it an attractive option for property investors.
Additionally, insights from Zillow reveal that while the median home value in Santa Fe stands at $566,125, homes in the area experienced a depreciation of 3.70%. This presents an interesting dynamic for both homeowners and investors in the short-term rental market.
Financial Considerations
When considering investment opportunities in Santa Fe’s short-term rental market, it’s essential to factor in financial considerations such as property taxes. According to SmartAsset, the average property tax rate in Santa Fe is 0.86%, which is a crucial aspect to include in the overall investment calculation.
