What Is the Average Cost of Living in New Mexico?

The cost of living refers to the money needed to sustain a certain standard of living, encompassing basic expenses such as housing, food, transportation, and healthcare. This article offers an overview of the average cost of living in New Mexico, detailing various expense categories and regional differences.

Key Expense Categories

Housing costs represent a significant portion of living expenses, and in New Mexico, they vary depending on the type of dwelling. The average rent for a one-bedroom apartment across the state is approximately $1,184 per month, while a two-bedroom apartment averages around $1,418 monthly. For those considering homeownership, the median home price in New Mexico was $345,100 as of January 2025. Property taxes in New Mexico are generally lower than the national average, with a median effective property tax rate of 0.74% and a median annual tax bill of about $1,588.

Utility expenses also contribute to the overall cost of living, covering essential services for a household. The average monthly utility costs in New Mexico are around $362. This includes an average monthly electricity bill of approximately $139, which is lower than the national average.

Natural gas bills average about $60 per month, and water bills are around $32. Internet services typically range from $40 to $100 per month, depending on the provider and speed. Waste and recycling services typically add to these utility costs.

Regarding groceries and food, the typical weekly or monthly expenditure depends on household size and dietary habits. While specific statewide averages for grocery bills were not detailed, dining out costs would also vary. The cost of transportation involves several factors for residents. Gasoline prices fluctuate, impacting daily commuting expenses for vehicle owners.

For those relying on personal vehicles, car insurance premiums are a regular expense. The average cost for full coverage car insurance in New Mexico is about $2,160 per year, or around $180 per month. Minimum coverage averages approximately $450 annually, or $38 per month. Public transportation options exist primarily in larger metropolitan areas, such as Albuquerque, where bus fares and passes contribute to monthly budgets for riders. Vehicle maintenance costs are also a consideration for car owners.

Healthcare expenses form another component of the cost of living. The average cost of health insurance in New Mexico is approximately $6,886 per person annually, which translates to about $574 per month. This figure is slightly below the national average. An individual doctor’s visit can range from $83 to $127 without insurance in New Mexico, and urgent care visits average around $264. Prescription medication costs also factor into healthcare spending, varying based on individual needs and insurance coverage.

Beyond these primary categories, miscellaneous expenses contribute to the overall cost of living. These can include personal care items, entertainment activities, and clothing. Such expenditures are highly variable and depend on individual lifestyle choices and preferences.

Cost Variations within New Mexico

The average cost of living in New Mexico can vary significantly across different regions, influenced by population density, demand for services, and local economic conditions. Major metropolitan areas, such as Santa Fe and Albuquerque, generally present higher costs compared to smaller cities and rural areas. This difference is particularly noticeable in housing and services.

In Santa Fe, for example, the fair market rent for a two-bedroom apartment can be as high as $1,627 per month, reflecting the city’s status as a popular destination with higher demand. Internet costs in Santa Fe also align with those found in other larger cities like Albuquerque and Las Cruces. In contrast, the average rent for a one-bedroom apartment in Albuquerque is around $977, and a two-bedroom averages about $1,202, demonstrating a somewhat lower entry point for housing in the state’s largest city.

Smaller cities and towns typically offer more affordable living. Places like Silver City, Portales, and Deming have some of the lowest average rents in the state, with two-bedroom units significantly less expensive than in metropolitan centers. For instance, Silver City’s average rent is $525 per month. Rural areas often present the lowest costs, especially concerning housing and property taxes.

Local tax rates also play a role in these variations. While the statewide median property tax rate is 0.74%, specific counties can have different rates. For example, Bernalillo County, which includes Albuquerque, has an effective property tax rate of 0.99%, while Santa Fe County has a lower rate of 0.55%. These localized differences in property taxes can impact the overall financial burden on homeowners in different parts of the state.

New Mexico’s Cost of Living Compared to the National Average

New Mexico’s overall cost of living is generally below the national average. The state’s cost of living index is 94.2, indicating it is approximately 5.8% less expensive than the national average of 100. This relative affordability can be a significant factor for individuals and families considering relocation.

When examining specific categories, New Mexico’s housing costs stand out as considerably lower than national averages. The median home price in New Mexico, at $345,100, is notably less than the national median home sales price of $437,923. Similarly, average rental prices for apartments are also typically below the national benchmarks.

Utility expenses in New Mexico can also be more affordable. While some utility costs align with national trends, New Mexico often ranks among states with lower overall energy bills. Internet costs in New Mexico generally fall within typical national pricing tiers, offering competitive options.

Healthcare costs in New Mexico present a mixed picture. However, the percentage of median household income spent on premiums is higher in New Mexico due to lower income levels.