SANTA FE, N.M. (KRQE) – One of the most expensive cities in New Mexico is only getting more expensive. Some newly released data shows just how much it could cost to be a homeowner in Santa Fe.

“Just enough houses haven’t been built in the last 20 years. We have a shortage just from the get-go,” said Chief Research and Policy officer at Homewise, Kelly O’Donnell.

Odonnel with Homewise, a Santa Fe based non-profit that develops affordable housing, said due to the demand for housing, land prices are high.

According to the latest data released by the Santa Fe association of realtors, the city of Santa Fe median home price rose by about 14% from the 4th quarter of 2021 to this quarter. Median homes prices jumped from almost $535,000 to more than $608,000. Home sales are down, while mortgage rates are up.

“In the last year or so mortgage rates have gone up quite a bit and as the federal reserve tries to get a handle on inflation and that’s how they try and bring inflation down is by raising interest rates,” said O’Donnell.

While O’Donnell said there’s not one solution, she mentioned giving financial assistance can help. She also believes neighborhoods need to allow new housing developments to be built in their area. The City of Santa Fe said they provide rental assistance to build affordable rental units.

“It’s really helpful in a market like ours where the sales prices are so much higher than the local income because what it means is a buyer doesn’t have to have as big of a mortgage as they would if they were having to qualify for the whole thing themselves,” said Director of the City of Santa Fe’s Office of Affordable Housing, Alexandra Ladd.

In addition to subsidized rentals, the city also helps up to 35 households a year by giving out no-interest loans up to $50,000. According to the city, there are currently 250 affordable units under construction.

The Greater Albuquerque Association of Realtors also recently released their 2022 report. Showing average sales prices in Albuquerque have risen more than 4% from the 4th quarter of 2021 to the 4th quarter of 2022, while new listings dropped 20%. The average price for a single-family home is almost $370,000.