What Is the Cost of Living in Santa Fe, New Mexico?

Santa Fe, New Mexico, stands as the oldest capital in the United States, a city celebrated for its rich history, vibrant culture, and flourishing artistic community. This unique blend of tradition and creativity draws many individuals to consider making it their home. Understanding the financial landscape is an important step for anyone contemplating a move to this distinctive city. This article provides a comprehensive overview of the costs associated with living in Santa Fe.

Housing Expenses

Housing represents a significant portion of living expenses in Santa Fe, with costs generally higher than national averages. For those looking to rent, the average monthly rent for an apartment is around $1,650 for an 836-square-foot unit, which is comparable to the national average. A one-bedroom apartment might cost around $1,400 per month, while a two-bedroom unit averages $1,290 monthly. The rental market can be competitive. Rental prices can vary based on location, with neighborhoods like San Mateo and Valle Del Sol typically being more expensive, while areas such as La Madera and Casa Alegre may offer more affordable options.

Homeownership in Santa Fe also carries a substantial financial commitment. Median home values in the city typically range from approximately $520,000 to $590,845. The median sale price for homes can vary, from around $507,700 to $687,132. These figures reflect a market where unique and historic properties often command higher prices.

Property taxes in Santa Fe County are comparatively low, which can offer some relief to homeowners. The effective property tax rate in Santa Fe County is around 0.51% to 0.55%, notably lower than the national median of 1.02%. The median annual property tax bill in Santa Fe is approximately $2,086. Furthermore, current New Mexico law limits the annual increase in property taxes to a maximum of 3% per year.

Essential Daily Expenses

Utility costs in the city are generally lower than the national average. Average monthly utility bills, covering electricity, heating, cooling, water, and garbage, typically range from $130 to $360. The average monthly electricity bill is about $140. Internet services average around $67 per month.

Water costs approximately $35 monthly, with sewer around $30, and trash collection also about $30, though these can vary based on specific providers or homeowner association fees. Natural gas expenses fluctuate seasonally, ranging from $20 in warmer months to $100 in colder periods.

Grocery and food expenses in Santa Fe are moderate compared to national averages. A single person might budget between $200 and $250 for monthly groceries. For a family, the average monthly grocery bill is around $862. Dining out costs vary, with a meal at an inexpensive restaurant costing about $18. A three-course meal for two at a mid-range restaurant can range from $60 to $120.

Transportation in Santa Fe is largely car-dependent, as public transportation options are somewhat limited. Gasoline prices typically fall within the range of $3.10 to $3.50 per gallon. For those utilizing public transit, a one-way bus fare is about $1.50 to $2, and a monthly pass costs $50. Vehicle ownership also includes other costs, such as monthly car insurance, which averages between $100 and $150, and annual vehicle maintenance, estimated at $1,200.

Healthcare and Other Costs

Healthcare expenses in Santa Fe are generally lower than the national average, often by about 8%. The average monthly cost for health insurance in New Mexico is approximately $513 for a Gold plan, or about $445 for a benchmark plan without tax credits. An employer-sponsored health insurance plan might cost around $150 per month. For a single adult, the annual cost for medical care is estimated to be about $3,282.

Childcare can be a significant expense for families in Santa Fe. The average cost for childcare providers in the city is approximately $22.64 per hour, or about $2,943 per month. Infant care is slightly higher, averaging around $24.09 per hour, or about $3,132 per month. The average annual cost for childcare in Santa Fe is approximately $11,200, and for a two-child family with two working adults, this expense can reach $12,582 annually.

A movie ticket typically costs around $12. A gym membership averages $40 per month. The average daily cost for food when eating out is approximately $75 per person.

New Mexico has a graduated individual income tax system, with rates ranging from 1.7% to 5.9%. The state does not impose a traditional sales tax, but rather a “gross receipts tax” (GRT), which businesses typically pass on to the consumer. The statewide GRT rate is 5.125%, but combined state and local rates can vary, potentially reaching up to 9.0625% depending on the specific municipality.

General Cost of Living Overview

Santa Fe’s cost of living is generally higher than the national average, typically ranging from 12% to 16% above it. This elevated cost is primarily driven by housing expenses, which can be as much as 60% higher than the national average. Conversely, other significant categories such as utilities, healthcare, and transportation often present costs that are lower than or comparable to national averages. The overall financial commitment required to live in Santa Fe reflects the city’s unique cultural appeal and amenities.