Cost of Living in New Mexico: A Guide for Homebuyers

You’re considering moving out west, but you’re curious about the cost of living in New Mexico and how it compares to where you live.

Don’t worry, we are here to help. This guide will explore the cost of living in New Mexico, from housing expenses to food and healthcare costs. We’ll also provide data from state cost of living index tools and how New Mexico ranks in the nation for livability.

Additionally, we will share a handy set of additional online resources to measure and compare the cost of living expenses in different New Mexico communities.

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What makes up the ‘cost of living’ in New Mexico?

When you’re planning to live in a new state, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Statista, a leading market data platform, defines “cost of living” as “the monetary cost of goods and services necessary to maintaining a certain standard of living.”

This overall cost will vary significantly based on location, even within the state. But the core living expenses you’ll pay for typically include the following categories:

• Housing (rent/mortgage)
• Energy (utilities)
• Food (groceries)
• Transportation (vehicles or transit systems)
• Healthcare (doctors, hospitals, etc.)

However, the costs often extend beyond these basics to cover other expenses, such as:

• Clothing
• Education
• Childcare
• Entertainment

These factors combined create a snapshot of the cost of living you can expect in a given city. However, it’s important to note that your costs are ultimately influenced by your income and debts and how the dollar amounts compare to the costs of basic needs in the New Mexico city where you live — or want to live.

Let’s take a quick look at some ways you can compare your current living cost with what you might experience if you move to New Mexico.

What’s a New Mexico cost of living index (CLI)?

A cost of living index (CLI) monitors how much these basic expenses change over time in different cities or regions. They provide a way to compare the price of maintaining a certain standard of living.

The CLI is calculated by assessing the price of essential goods and services such as housing, food, healthcare, and transportation in different areas.

An index is typically standardized, with a base city or region assigned a baseline index value (often set at 100). Other cities or regions are then compared against this benchmark. For example, a New Mexico or city with a CLI of 120 would signify that living there is 20% more expensive than the base location, while an index of 80 indicates it’s 20% less expensive.

A cost of living index will typically break down and score each basic expense by category. Here are separate scores for New Mexico from the worldpopulationreview.com Cost of Living Index:

• Groceries: 96.70
• Housing: 87.50
• Utilities: 93.20
• Transportation: 93.50
• Health: 99.60
• Miscellaneous: 98.30

New Mexico overall annual cost of living data

Using additional data collected by Forbes, let’s take a closer look at actual dollar amounts and how New Mexico ranks compared to the other 50 states in the U.S.

• Total annual cost of living: $34,501 — ranks #46 out of 50 states

(Average yearly expenses for housing, food, healthcare, transportation, and taxes)

• Total annual disposable income: $19,899  — ranks #16 out of 50 states

(Total cost of living subtracted from average salary shown in table below.)

New Mexico cost of living data at a glance

Source: Forbes using data from the C2ER, U.S. Census and BLS reports, MIT Living Wage Calculator, Kaiser Family Foundation, and other public sources

New Mexico tax rates

• State individual income tax rate: 1.70%-5.90%*
• State sales tax rate: 5.00%
• Effective property tax rate (percentage of home value): 0.80%
• Median annual property taxes paid: $1,470
• Average annual property tax bill: $2,239

*Some jurisdictions may collect local income taxes

Of 50 states, how does New Mexico rank for livability?

If you’re planning a move to the Centennial State, you may be interested in more than just the cost of living data. Here’s a summary of livability insights for New Mexico:

New Mexico livability rankings

• Crime and corrections: #47 (corrections outcomes, public safety)
• Economy: #44 (business environment, jobs, growth)
• Education: #50 (higher education, pre-K-12)
• Fiscal stability: #15 (long- and short-term stability)
• Healthcare: #38 (access, quality, public health)
• Infrastructure: #44 (energy, Internet access, transportation)
• Natural environment: #32 (air and water quality, pollution)
• Opportunity: #41 (Affordability, economic opportunity, equality)

Source: U.S. News & World Report

»See more details about these categories on this U.S. News New Mexico rankings page.

Additional cost of living indexes

Here are some cost of living index links to research additional New Mexico living expenses:

• Statista: Provides free access to many basic statistics. Paid subscriptions are available for more detailed information about New Mexico communities.
• ACCRA (C2ER): Maintained by the Council for Community and Economic Research. This is a paid service that maintains one of the largest databases of cost of living metrics for most all New Mexico cities.
• World Population Review CLI page: This website provides a free search-by-state tool at the bottom of its Cost of Living Index page.
• Numbeo: This crowd-sourced CLI promotes itself as “the world’s largest database of user-contributed data about cities and countries worldwide.” This service can show you user-provided insights such as the cost of an inexpensive restaurant or the perceived presence of crime in different parts of New Mexico. It’s free for personal use.

Why are people moving to (or away from) New Mexico?

According to the United Van Lines 47th Annual Movers Study that tracks migrations within the United States, here are the reasons why people are moving into New Mexico or away to other states.

Primary reasons people are moving

Total inbound: 59.6%

Total outbound: 40.4%

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Budgeting for your move to New Mexico

Below is a collection of handy online tools to help estimate your moving costs and living expenses in New Mexico — from how much you’ll need to pay a mover to how much your current home might sell for and the proceeds you can expect.

1. Online move cost estimators

With today’s smart technology, you can find a wide variety of tools to help you estimate the cost of paying for a mover or how to find a trusted mover for your relocation to New Mexico. Some examples include:

• Move.com Moving Cost Calculator
• Consumer Affairs ‘Find a Mover’ tool
• U-HAUL ‘Moving Help Cost’ resource page

2. Cost of living calculators

Cost of living calculators are different from cost of living indexes. These tools, typically free, provide a comparison based on income and regional costs for housing, transportation, food, healthcare, and other basic necessities in the two locations you select

For example, if you live in El Paso and want to move to Albuquerque. Some popular cost-of-living calculators include:

• Bankrate
• BestPlaces
• Insure.com
• Forbes
• Numbeo
• RentCafe
• Salary.com

3. Living wage and budget calculators

• Living Wage Calculator: Designed by the Massachusetts Institute of Technology (MIT), this calculator can help you estimate the local wage rate that you’ll need as a full-time New Mexico worker to cover the costs of your family’s basic living expenses in a selected new location.
• Family Budget Calculator: This tool, provided by the Economic Policy Institute (EPI), estimates the income your family will need to attain a modest — yet adequate — standard of living in your selected new community. Choose from 10 family types in all counties and metro areas in New Mexico.

4. Homebuyer calculators

• Home Affordability Calculator: Understand the costs associated with buying a home and find out how much home you can afford before you start looking at homes for sale or planning a move.
• Down Payment Calculator: Estimate how much you might need to put down on a home and learn more about the loan options that work best for you.
• Closing Costs Calculator: Find out how much cash you’ll need for closing costs on a house, including estimated lender and third-party fees.

5. Home seller calculators

• Home Value Estimator: Get a preliminary estimate of what your current home is worth, along with options to help you get the best price when you’re ready to sell.
• Best Time to Sell Calculator: Use this calculator that incorporates nationwide real estate transaction data to help time your move.
• Agent Commissions Calculator: Learn how much you might pay in real estate agent commissions when selling a house in your current market.
• Net Proceeds Calculator: Get a ballpark idea of the net proceeds you could earn from the sale of your existing home.