Santa Fe Renters Benefit as Apartment Construction Surges
A significant increase in multifamily housing construction in Santa Fe is creating a more favorable rental market for residents, with landlords offering incentives like extended periods of free rent to attract tenants.
Flashy mailers promising free rent and modern amenities have become common as hundreds of new units come online in 2025. This represents a shift from recent years, when limited supply allowed landlords to rapidly increase rents. Peter Aberg, president of Aberg Property Co., described the current market as a “renter’s market,” noting that “rent growth has stalled and, in some cases, declined a little bit because of all this new supply.” Approximately 900 to 1,100 new units are expected to be available this year, concentrated on the city’s south side and east of Cerrillos Road.
The surge in construction – with over 2,500 units currently under construction and nearly 4,000 more in the pipeline – is also impacting occupancy rates, which have fallen from around 92% a year ago to closer to 85% in 2025. Santa Fe Mayor Allan Webber highlighted the “dramatic uptick in multifamily construction” in a recent memo, pointing to data showing rent increases have slowed to just 0.5% above last year’s rates. This affordability shift comes as the city grapples with a broader housing crisis, where the average rent for a two-bedroom apartment is approximately $2,114 per month, according to Zillow, putting it out of reach for many workers. The increased housing supply may alleviate some pressure on the city’s workforce, a third of whom currently commute from more affordable areas like Rio Rancho or Española.
While developers face rising construction costs, potentially limiting further price reductions, the influx of new apartments – many featuring resort-style amenities – is changing the dynamics of the Santa Fe rental landscape. The New Mexico Home Builders Association is advocating for legislative changes to further encourage housing development, including a proposed $10,000 tax credit for new homebuyers, as detailed on their website. City officials are monitoring the situation and considering further steps to address affordability, with several projects, including the 244-unit Zia Flats, scheduled for completion in the coming years.
