Cost of Living in New Mexico | Housing, Lifestyle & Expenses 2025

Housing Costs in New Mexico

Housing is the biggest expense for most households, and here New Mexico shines:

• Statewide Median Home Value (2025): ~$319,000

• Albuquerque: ~$340,000 — affordable big city living with job opportunities

• Santa Fe: ~$590,000 — higher due to art, culture, and tourism demand

• Los Lunas: ~$335,000 — commuter-friendly and family-oriented

• Bosque Farms: ~$525,000 — large lots, semi-rural lifestyle

Renters also find affordability:

• 1-Bedroom Apartment (ABQ): $950–$1,200/month

• 2-Bedroom Apartment: $1,200–$1,600/month

• Los Lunas & Belen: 10–20% lower

👉 Explore Los Lunas homes for sale 

Utilities & Transportation

• Electricity & Gas: $150–$180/month

• Water & Trash: $40–$60/month

• Internet: $65–$80/month

Transportation:

• Gas: ~$3.20–$3.40/gallon (below U.S. average)

• Commutes: Albuquerque ~23 min; Los Lunas ~30 min to ABQ

• Public Transit: Limited outside Albuquerque

Food & Groceries

Groceries in New Mexico run 5–7% below national averages.

• Family of 4: ~$900–$1,100/month

• Casual Dining for Two: $30–$40

• Mid-range Restaurant for Two: $70–$90

Local tip: Farmers’ markets like the ABQ Rail Yards Market or Santa Fe Railyard make it easy (and affordable) to shop fresh. And of course—green chile is everywhere, and often doesn’t cost extra. 

Healthcare & Insurance

Healthcare costs are slightly lower than the U.S. average:

• Healthcare Index: ~93 (vs 100 national avg)

• Doctor Visit: $120–$140 (without insurance)

• Hospitals: UNM Hospital (Albuquerque), Presbyterian, and Christus St. Vincent (Santa Fe)

Rural areas have fewer options, but affordability and slower pace of life make New Mexico appealing for retirees.

Entertainment & Lifestyle

Living in New Mexico means enjoying world-class experiences at budget-friendly prices:

• Albuquerque International Balloon Fiesta: $15–$30 per ticket

• Museums (ABQ & Santa Fe): $10–$20

• State Park Pass: ~$40 annually per vehicle

• Outdoor Recreation: Free trails, mountains, and desert adventures

From skiing in Taos to soaking in hot springs or hiking White Sands, adventure is everywhere.

Where to Live in New Mexico

• Albuquerque: Affordable urban hub with jobs & diversity.

• Santa Fe: Pricier but rich in arts, culture & dining.

• Los Lunas: Family-friendly, commuter town, more affordable.

• Bosque Farms: Rural feel, equestrian lifestyle, near Albuquerque.

• Taos: Mountain town, skiing, arts scene.

FAQs: Cost of Living in New Mexico

Q: Is New Mexico expensive to live in?
A: No, New Mexico’s cost of living is ~8–10% below the U.S. average, making it more affordable than Colorado or Arizona.

Q: Which city is the most affordable in New Mexico?
A: Los Lunas, Rio Rancho, and Belen offer lower housing costs compared to Santa Fe and Taos.

Q: Is Santa Fe more expensive than Albuquerque?
A: Yes, Santa Fe’s housing costs average ~$590,000 vs ~$340,000 in Albuquerque.

Q: How much money do you need to live comfortably in New Mexico?
A: A household income of $55,000–$65,000 typically supports a comfortable lifestyle for a family, depending on location.

Final Thoughts

New Mexico offers an affordable lifestyle with priceless benefits—rich traditions, welcoming communities, and year-round sunshine. Whether you’re buying your first home, retiring, or relocating for work, the cost of living here delivers value without compromise.

Unlike many neighboring states, New Mexico lets you enjoy mountain views, cultural festivals, and incredible food at a fraction of the price. Here, your money stretches further, and your lifestyle grows richer.

👉 If you’re ready to make your move, New Mexico isn’t just a cheaper choice—it’s a chance to create the life you’ve been dreaming of.

Ready to explore what living in New Mexico could look like for you? I’m Harriett Taylor, AI Certified Realtor with Altura Real Estate—one of the world’s first AI Certified Agents based right here in New Mexico.

With advanced AI insights + local expertise, I’ll help you find the right home at the right price.

📞 Call me today at 505-450-8690
🌐 Visit search-newmexicohomes.com