Ernst & Young presents data showing Santa Fe growth, housing pressure and workforce gaps

Ernst & Young presenters on Wednesday told the Santa Fe Quality of Life Committee that the city is growing but facing rising housing costs and workforce challenges that should shape the next economic development strategic plan.

The consultants, Tony DeLisi, managing director of Ernst & Young Economic Development Advisory Services, and Jung (Young) Kim, research director, said the city—s population grew faster than the county and state from 2018 to 2023, driven in part by increased housing construction. At the same time the presenters flagged diverging trends on housing and income: median household income in the city has not risen as quickly as in surrounding geographies, while the gap between home values in Santa Fe and the U.S. widened to about $215,000 by the end of last year.

"Every community is very different," DeLisi said, describing the work as an effort to ground strategy in data. Kim added that the city—s population has a higher share of residents 65 and older (27 percent in the city versus 20 percent in New Mexico), but the prime working-age cohort (25–54) remains 38 percent of the city population and is comparable to state and national levels.

Why it matters: Committee members and staff said the findings should be used to align the city—s land-code update and future strategic solicitations so policy choices respond to housing supply, income distribution and industry composition.

Key data points and discussion

- Population and age: The city—s median age was reported as 46.2 years; the 65+ cohort was 27 percent of city residents, higher than statewide and national shares. Kim noted the workforce-age share remains near national levels, complicating the narrative that Santa Fe is only an older retirement community. (Presentation excerpts: Tony DeLisi; Jung Kim.)

- Income and industry mix: The presenters said median household income in the city has trailed the county and country in recent years. DeLisi and Kim pointed to the local industry mix—including a relatively large hospitality sector—and a mix of fixed-income retirees and households in poverty as forces keeping the median lower.

- Housing supply and values: Kim said housing permit activity rose after 2018 and helped drive population growth; however, the home-value gap with the U.S. widened to about $215,000 by late 2024. Presenters linked that partly to pent-up demand and limited supply.

- Workforce and retention: Stakeholder interviews summarized by the team identified workforce shortages across sectors (restaurants, construction, health care) and difficulty retaining younger residents, which participants said could limit the city—s ability to grow high-paying, scaled clusters.

Committee reaction and next steps

Council members asked how the analysis would inform the city—s land-code redevelopment and broader strategic planning. Erica Nelson, director of the city team coordinating the study, said city staff are connecting the consultants— findings to the land-use contractor to avoid duplication and align analysis.

DeLisi and Kim said the work presented is the first-phase data assessment and that a later strategic-planning phase would deepen stakeholder engagement, include more interviews and potentially city-specific administrative data (for example, city-level housing permits), which HUD data do not provide.

The presentation will be shared with the Economic Development Advisory Committee materials; staff said future work will be scoped to include additional quantitative and community engagement phases to inform an RFP for a full strategy.