AP News - Santa Fe has long referred to itself as “The City Different” for its distinct atmosphere and a blending of cultures that stretches back centuries. Now, it’s trying something different — something officials hope will prevent a cultural erosion as residents are priced out of their homes.
It’s the first city in the United States to directly link wages to housing affordability, aiming to counter high rents by tying minimum wage increases to consumer prices as well as fair market rental prices.
Many see the new ordinance as a big step forward for workers, but Mayor Alan Webber also sees it as an important tool for addressing an affordability crisis that threatens the very fabric of Santa Fe.
“The purpose is to make a serious difference in assuring that people who work here can live here,” he said. “Santa Fe’s history and culture is really reflected in the diversity of our people. It’s that diversity that we’re trying to preserve.”
Santa Fe is not alone. Rising rents and housing prices have squeezed households nationwide, leaving many with less income to pay for other necessities. Experts say the financial pressure on renter households has increased compared to pre-pandemic conditions.
Santa Fe’s minimum wage will increase to $17.50 starting in 2027. The annual increase historically has been tied to consumer prices, but going forward a new blended formula will be used to calculate the annual increase, with the Consumer Price Index making up one half and fair market rent data making up the other.
There’s a 5% cap in case costs skyrocket, and if consumer prices or rents tank in any particular year, the minimum wage will not be reduced.
Santa Fe first adopted a living wage in 2002. The ordinance has been expanded over the years and the mission this time was to deal with median housing prices and rental costs that were far above any other major market in New Mexico.
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