New Mexico cost of living
Can you afford to live in the Land of Enchantment?
+1 more
People considering a move to New Mexico need to think beyond the scenery and climate. It’s equally important to understand the cost of everyday necessities like housing, groceries and health care. Knowing these specifics can help ensure your move aligns with your long-term financial goals.
To determine the cost of living in New Mexico, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent official sources to gather housing, food, transportation, health care and utility costs for a complete picture of everyday expenses.
People in New Mexico spend $46,076 each year on goods and services, on average.
Jump to insightThe average rent in New Mexico is $1,184, versus the national average rent of $1,639.
Jump to insightResidents in New Mexico spend $286.39 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.89 in New Mexico.
Jump to insightRecent data shows that employees in New Mexico pay $1,672 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in New Mexico
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in New Mexico was $46,076 in 2023. This number represents the average amount residents spend each year on the essentials — including housing, medical care, groceries, utilities, fuel and other goods and services.
Here’s a breakdown of the largest spending categories in New Mexico:
| Category | Annual per-capita cost in New Mexico |
|---|---|
| Housing and utilities | $8,165 |
| Health care | $7,998 |
| Food and beverages for off-premises consumption | $4,031 |
| Gasoline and other energy goods | $1,532 |
| All other personal consumption expenditures | $24,349 |
| Total cost | $46,076 |
Housing costs in New Mexico
For most households, where you live and what you pay for housing is the single biggest factor in the family budget. According to the latest data from Apartments.com, New Mexico’s average rent is $1,184, which is less than the national average rent of $1,639. Housing costs can vary widely depending on the city, neighborhood and size. Compare your options before committing.
The U.S. Census Bureau’s 2023 American Community Survey details average monthly rents in New Mexico:
- One-bedroom rent: $888
- Two-bedroom rent: $1,055
- Three-bedroom rent: $1,269
- Four-bedroom rent: $1,614
If you’re planning to buy, the median home price in New Mexico is $369,900, compared with the U.S. median home price of $446,638.
Property taxes play a role in your monthly expenses as well. New Mexico’s effective property tax rate is 0.61%, which is something to factor in when budgeting for homeownership. New Mexico ranks No. 34 for the highest effective property tax rates in the nation.
» COMPARE: Best moving companies in New Mexico
Food costs in New Mexico
How much you spend on groceries in New Mexico depends on your shopping habits and family size. The U.S. Census Bureau reports the average household spends $286.39 per week on food at home, compared with a national average of $270.21.
Eating habits, whether you prefer to cook at home or dine out, can have a big impact on your monthly food budget. In larger cities like Albuquerque or Santa Fe, expect higher prices at restaurants and specialty stores. However, smaller towns and rural parts of New Mexico often see lower grocery prices, and shopping at local markets or discount grocers can provide additional savings.
Transportation costs in New Mexico
Transportation is another vital cost to consider. As of August 2025, New Mexico drivers pay $2.89 per gallon for regular gas, while the U.S. average is $3.13. The price you pay at the pump will depend on fuel markets and your driving habits.
Auto insurance costs also affect your transportation budget. The average premium for full coverage in New Mexico is $1,148.99, which is slightly lower than the national average of $1,258.
Health care costs in New Mexico
Access to health care is essential for families. In New Mexico, the average employee pays $1,672 each year for employer-sponsored health insurance, while employers cover the remaining $6,660 of the $8,333 annual premium.
For comparison, employees across the U.S. pay an average of $1,640 out of a total premium of $8,182.
Utility costs in New Mexico
Utility bills are a regular part of household expenses. In New Mexico, the average monthly electric bill is $91.20, compared with the national average of $136.84.
Natural gas prices in New Mexico come in at $8.20 per thousand cubic feet, while the U.S. average is $12.92.
FAQ
Does New Mexico have a high cost of living?
No, New Mexico does not have a high cost of living compared with the national average. Most residents pay less for housing and utilities than in other parts of the country.
Is New Mexico a good place to live?
Yes, New Mexico is a good place to live if you’re looking for affordable housing and lower overall costs. Many people are choosing to move to New Mexico, and renters can benefit from reasonable prices in many areas. The lower cost of living is a major draw for families and retirees alike.
» RELATED: Best moving companies
Is New Mexico good for renters?
Yes, New Mexico is good for renters. Rent tends to be affordable, and the quality of life for renters is high. However, tenant protections may not be as robust as in some other areas, so it’s important to review lease agreements and local laws carefully before signing.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
