What Is the Cost of Living New Mexico?

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What Is the Cost of Living New Mexico?

New Mexico is a historic state with a fascinating past. Beautiful scenery, incredible architecture, a broad employment market, and unique cuisine are just a few of the reasons why this state is a desirable area to live, work, and play.

So, how much does it cost to live in New Mexico, and should you relocate there? 

While many people think of New Mexico as an arid desert, it is actually lush with greenery and has 300 days of sunshine every year. There’s also plenty of room because the population density is only about 12 people per square mile. In New Mexico, there’s no shortage of places to visit. Moving to New Mexico will satisfy your adventurous side, from trekking in Chaco Canyon National Historical Park and Carlsbad Caverns National Park to exploring the otherworldly in historic Roswell. When looking for a home in this lovely state, think about how far your money will stretch. What is the minimum wage in New Mexico, the Land of Enchantment, in order to live comfortably? It’s all about considering the benefits and drawbacks when it comes to finding your future home. When you consider career changes, schooling options, safety, neighborhood values, entertainment, and a slew of other issues, the burden of choice can feel overwhelming. Do not be concerned; assistance is always available. This straightforward overview of New Mexico’s cost of living will show you what to expect in each of the state’s major regions. Knowing how far you can stretch your dollars can help you examine each area and settle into a comfortable lifestyle that takes advantage of New Mexico’s many benefits.

New Mexico is less expensive than the rest of the United States on average. According to Bureau of Economic Analysis data, goods and services in the state cost 8.9% less than they do on a national level. New Mexico has the 18th lowest overall cost of living when compared to all other states. Living in densely populated urban metro areas is generally more expensive than living in more rural locations. There are four major cities in New Mexico. The cost of goods and services in the Santa Fe metro region is 2.2 percent lower than the national average and 6.7 percent more than the statewide average, making it the most costly in the state.

The cost of living in New Mexico is discussed in detail below, covering housing, utilities, transportation, taxes, and more.

Is living in New Mexico Expensive? 

Many people opt to relocate to New Mexico because the cost of living is lower than the national average. In fact, living in New Mexico costs 11.6 percent less than the national average. All of this is to say that the cost of living in New Mexico varies depending on where you want to live. For example, living in Albuquerque costs a bit more than the national average because the average is 7.5 percent lower. Clovis, New Mexico, has a 14.3% lower cost of living. The cost of living in New Mexico is lower than in other states, no matter where you go. When comparing the cost of living in Albuquerque with Denver, Colorado, Denver is clearly more expensive. Albuquerque’s rent prices are nearly half of what they are in Denver, and its restaurant prices are approximately a quarter of what they are in Denver.

Housing Prices 

New Mexico’s average single-family home costs $193,200. Housing in the state is 16 percent less expensive than the national average; however, this varies by region. The average home in New Mexico is worth $166,800. In the last ten years, home values have increased by 6.5 percent. The cost of living in Santa Fe is slightly higher than the national average, owing primarily to skyrocketing house costs. A large number of the state’s most expensive homes are located in this city. Santa Fe’s typical living costs are three percent lower than the national average, excluding housing costs. When housing costs are taken into account, costs rise by 20% above the national average.

It’s worth noting that living in a big city is usually more expensive than living in a small town. New Mexico has four urban regions, one of which is Santa Fe. In comparison to 2019, the average sale price of a single-family home in Santa Fe grew by 10.7% in 2020. Since 2006, this is the greatest single-year increase in the metro area. Even so, now is an excellent time to buy a property in New Mexico.

In New Mexico, the average rent for a 1,470-square-foot apartment is $1,250. New Mexico rent is 24.2 percent cheaper than the national average of $1,650. Albuquerque rents for 72.16 percent less than New York. The cost of living in New York is most likely influenced by housing costs.

Expenses for Utilities 

In Albuquerque, the cost of basic utilities is around $140, which includes power, heating, cooling, water, and garbage. A month’s worth of Internet at 300 Mbps costs $65. Basic utilities for a 915 sq. ft. apartment will cost around $137 per month.

New Mexico’s Food Prices 

New Mexico’s food prices are generally comparable to national norms. A liter of milk costs. Seventy-eight cents in Albuquerque, while a cappuccino would set you back around $4.50. A fast-food combo meal costs around $7, whereas a standard lunchtime menu (with a drink) in the business district costs around $15. A three-course supper for two at a mid-range restaurant in Los Alamos costs $35. A pound of potatoes costs. Sixty-nine cents while a pint of domestic beer costs 5.00.

Healthcare Costs in New Mexico

In New Mexico, out-of-pocket costs and insurance premiums for health care are comparatively inexpensive, assuming at least a basic level of coverage. The average cost of health care for a single adult in the state is $3,326 per year, compared to $4,266 nationally. The average annual healthcare cost for a family of four is $10,213 — $2,737 less than the national average of $12,950.

Food Prices in New Mexico 

Another daily item that has a big impact on an area’s overall cost of living is food. The cost of food varies from state to state, according to data from the United States Department of Agriculture. A single adult in New Mexico spends an average of $3,082 on food each year, while a family of four spends an average of $8,902. To put things in perspective, a single adult’s annual food expenditure is $3,240, while a family of four’s annual food cost is $9,354. These figures are based on a nutritionally appropriate diet purchased from a grocery shop and prepared at home.

Costs of Child Care in New Mexico 

Child care costs contribute thousands of dollars to a family’s annual budget. In New Mexico, the average yearly cost of child care for a four-year-old is $7,844, well below the national average of $8,903. In New Mexico, it costs an average of $13,857 a year to care for a four-year-old child and an eight-year-old child, compared to a national average of $15,853.

Costs of Transportation

Ninety percent of residents in New Mexico drive to work. Because the state’s business sectors are more dispersed, driving around requires more time and petrol. The average motorist in the state travels 14,178 miles per year. When you add it all up, it may be quite costly. At two dollars a gallon, the average motorist in the state spends $1,000 per year on gas alone. When you include in the cost of insurance — the average car insurance premium is $1,275 — it’s a no-brainer. A regular monthly public transportation pass is $30.

 Taxes

State and local taxes in New Mexico are lower than the national average, excluding federal taxes and combining state and local taxes such as property and sales taxes. New Mexico’s state tax collections per capita are $2,707 per year. New Mexico’s personal income tax rates range from 1.7 percent to 4.9 percent, depending on your income category. 

County Costs of Living (or County Equivalents) 

The cost of living varies not only from state to state but also from neighborhood to neighborhood within states. Sandoval County, which includes Rio Rancho, has the highest overall cost of living for a family of four in New Mexico, at $83,558 per year, much above the state average of $72,666. 

What About the Entire State?

The state averages are remarkably similar in each of the regions that have been studied thus far. 

When you consider that Albuquerque is home to nearly 25% of the state’s population, this isn’t surprising. New Mexico’s overall combined cost rating is 101 percent of the national average, or one percent higher than typical. In New Mexico, there are only two pricing categories that are above average. Housing gets a 106 percent rating, while miscellaneous costs get a 101 percent rating. Groceries, healthcare, utilities, and transportation each receive a score of 98, 97, 96, and 97 percent. Once again, housing costs account for nearly all of the inflationary charges, raising the average cost of living in an otherwise low-cost area. The state’s high housing rates are concentrated largely in the northern portion, with Santa Fe and Taos serving as exceptions. The cost of living in New Mexico is favorable no matter where you look. Even in places where the costs appear to be high on paper, such as Santa Fe and Farmington, the majority of the costs are tied to housing. Using reliable resources can assist you in finding an economical, high-quality property that will eliminate the majority of your anticipated costs. After that is taken care of, you can focus on enjoying the rich culture, incredibly gorgeous weather, panoramic views, and world-class food while taking in the rich culture, overwhelmingly lovely weather, and world-class food.

What Is the Minimum Amount of Money Required to Live Comfortably in New Mexico?

In New Mexico, the required income to live comfortably is $42,445. This is split into three categories: 50 percent for needs, 30 percent for discretionary expenditure, and 20 percent for savings. A single individual without children may live in Mexico on $13.97 per hour, or $26,880 per year, according to Living Wage.

Purchasing a Residence in New Mexico 

You’ll need an experienced Realtor if you’re considering relocating to lovely New Mexico. 

You’ll need an agent that knows the ins and outs of the greatest neighborhoods in particular. 

UpNest comes in handy in this situation. Home values are rising in many parts of New Mexico, while housing costs are cheap when compared to the national average. That is why now is an excellent time to purchase a property in New Mexico.

The Benefits of Living in New Mexico

Natural Attractions

The spectacular natural beauty of New Mexico is well-known and admired. As a result, New Mexico attracts tens of thousands of visitors each year. Mountains, rivers, deserts, woods, national parks, valleys, and other natural wonders await you in the Land of Enchantment.

Climate is Favorable

Residents of New Mexico can take advantage of the state’s warm, continental climate, which includes all four seasons. Summers are hot and sunny, while winters are frigid and snowy. The local climate’s major drawback is its dryness and lack of precipitation throughout the year. However, because of the high amount of sunny days, most people prefer this environment.

Traditions and a Diverse Culture 

New Mexico is noted for its ethnic diversity, lengthy history, and ancient traditions. Many people from ancient Native American tribes, as well as Hispanics and Latinos, can be found in the Land of Enchantment. There are also large Asian, Middle Eastern, and African-American communities. They all contribute to a really unique culture with well-preserved traditions. Many cities in New Mexico resemble open-air museums, with a wide range of architectural styles reflecting the state’s long and varied history. 

Wines of High Quality

More than 60 vineyards in New Mexico generate around 900,000 gallons of wine each year. In the Land of Enchantment, there is even a True Wine Trail. Local wine is delectable and has been inspired by Latino and Spanish customs.

The Drawbacks of Living in New Mexico

High Incidence of Crime

Unfortunately, New Mexico has a higher crime rate than many other states. The rate of violent crimes is 8.6% (per 1,000 residents), compared to 3.7 percent nationally. Poverty-related crime is also at an all-time high, at over 39%. (versus the national level of 24 percent ). New Mexico has the highest rates of property and violent crime in the state’s mountain area.

Roads That Are in Poor Condition

New Mexico’s roadways are in horrible shape, especially in rural areas. Almost a quarter of rural roads are in such poor condition that they increase the danger of accidents. The “Most Dangerous Road in the United States” or “The Devil’s Highway” is a road in New Mexico. Bridges and numerous mountainous roads in the state are also in bad shape. The state’s hilly regions in the north are the riskiest for driving.

Education of Poor Quality

Despite the fact that New Mexico had the highest number of doctoral degrees in 2000, the state’s primary and secondary education remains inadequate. Only 25% of school students passed the arithmetic test in 2018, while only 31% of students finished the English arts test. One of the key causes for New Mexico’s poor public education system is a lack of financing. With less than $11,000 spent per student yearly, public schools are ranked 17th.

There Aren’t Many Well-Paying Jobs. 

There aren’t many well-paid jobs in New Mexico because it’s one of the poorest states in the country. Despite having a low unemployment rate in comparison to other states, many inhabitants in the Land of Enchantment are unable to find work that pays well enough to live comfortably. New Mexico’s average hourly rate is $16. The state’s average annual wage is roughly $53,000.

A Low Rate of Literacy

The literacy rate of New Mexico is the lowest in the country. In the Land of Enchantment, 29.1 percent of adults have low literacy. Furthermore, 25 percent of the adult population in seven of the state’s nine counties has a literacy level below that of the state’s average. The majority of them are Hispanics who know only a few words of English or none at all. Low literacy is a severe problem because it is linked to a variety of societal concerns such as poverty, drug usage, unemployment, and so on.

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