SANTA FE, N.M. (AP) — Santa Fe, famously known as 'The City Different', is making waves with a radical approach to tackle the rising housing crisis that threatens its diverse population. In a pioneering step, the city has become the first in the U.S. to directly link minimum wage increases to housing affordability metrics, a move aimed at maintaining the very essence of Santa Fe's rich cultural tapestry.
In an effort to address skyrocketing rents and living costs, the city’s ordinance is set to raise the minimum wage to $17.50 by 2027. This wage increase will be informed by a new blended calculation consisting of half the Consumer Price Index and fair market rental data. The initiative is seen as an essential response to ensure that the local workforce can afford to live where they work.
Mayor Alan Webber emphasizes the ordinance’s potential impact, stating, 'The purpose is to make a serious difference in assuring that people who work here can live here.' Nearly 20% of the city’s workforce, an estimated 9,000 workers, will benefit from this policy. However, experts caution that merely raising wages may not completely resolve the housing affordability issue, especially for vulnerable populations such as seniors and individuals with disabilities.
The ordinance comes at a time when nationwide housing costs are outpacing wage growth, leading to increased financial stress for renters. Local economist, Reilly White, collected data showing that minimum wage workers were falling further behind, necessitating a recalibration of how wage increases are calculated.
In addition to the wage policy, Santa Fe is planning to permit more housing developments and has enacted a mansion tax to fund affordable housing projects. Mayor Webber notes that increasing housing supply is crucial, adding that 'the stakes are high' in maintaining the city’s diversity and affordability. As construction progresses on new housing complexes and with supportive measures in place, Santa Fe is taking significant steps toward a more sustainable future for its residents.
In an effort to address skyrocketing rents and living costs, the city’s ordinance is set to raise the minimum wage to $17.50 by 2027. This wage increase will be informed by a new blended calculation consisting of half the Consumer Price Index and fair market rental data. The initiative is seen as an essential response to ensure that the local workforce can afford to live where they work.
Mayor Alan Webber emphasizes the ordinance’s potential impact, stating, 'The purpose is to make a serious difference in assuring that people who work here can live here.' Nearly 20% of the city’s workforce, an estimated 9,000 workers, will benefit from this policy. However, experts caution that merely raising wages may not completely resolve the housing affordability issue, especially for vulnerable populations such as seniors and individuals with disabilities.
The ordinance comes at a time when nationwide housing costs are outpacing wage growth, leading to increased financial stress for renters. Local economist, Reilly White, collected data showing that minimum wage workers were falling further behind, necessitating a recalibration of how wage increases are calculated.
In addition to the wage policy, Santa Fe is planning to permit more housing developments and has enacted a mansion tax to fund affordable housing projects. Mayor Webber notes that increasing housing supply is crucial, adding that 'the stakes are high' in maintaining the city’s diversity and affordability. As construction progresses on new housing complexes and with supportive measures in place, Santa Fe is taking significant steps toward a more sustainable future for its residents.
