Cost of Living in Albuquerque

Is Albuquerque, NM, an expensive place to live? Let's find out by looking deeper into the cost of living, the average household income, and other typical expenses!

Albuquerque, New Mexico, is known as one of the best places to live in the state for more than just the exceptional weather and stunning landscapes. If you're looking for a place to live with a friendly community, diverse culture, prime real estate, deep history, and a low cost of living, then look no further.

In the heart of NM, Albuquerque is the most populous city in New Mexico, with over 560,000 residents; this mid-sized city is perfect for families, young professionals, or retirees. 

Locally known as Duke City, Albuquerque is home to the University of New Mexico, which is the largest university in the state. As a college city, the job market is constantly growing, making it a great place to find a job once you make the move. 

First things first when moving to a new area is knowing how much it is going to cost you. Moving can bring on both stress and excitement. Make sure you learn as much as you can about the cost of living before moving to Albuquerque. 

Keep Reading to learn more about the cost of living in Albuquerque.

Cost of Living

Compared to the state and national average, Albuquerque is considered an affordable place to live. Overall, the cost of living in Albuquerque is 7% lower than the national average. More specifically, compared to the national average, housing is 12% lower, utilities are 8% lower, groceries are 2% lower, and transportation is 7% lower. 

These statistics may not equate to exactly how much you are going to be spending in Albuquerque, but they will give you a good idea of how much it costs to live here. Keep in mind that the cost of living will vary greatly depending on your lifestyle, family size, location, and budget. 

The average family of four will spend about $75,469 a year. If you have no children, then your expenses will be much cheaper as a family of two spends about $44,697 per year on average. Albuquerque is known to be more affordable than other cities in the state, like Santa Fe. 

No matter where you move to in the state, New Mexico is much cheaper than other states. Due to the population size, housing, food, and most other expenses are some of the lowest in the country. 

Here are some typical cost of living aspects according to Payscale.

Real Estate

The housing market is known to rise and fall throughout the year, meaning housing prices can change frequently based on various factors. Luckily, housing prices in Albuquerque are typically affordable, 12% lower than the national average. 

The median home price is about $365,000, although this can vary based on the location and size of your home. Still, it is considered relatively affordable compared to the rest of the state and country. 

If you aren't ready to buy a home or if you're looking for short-term living, the median rent is about $1,201 a month. There are many luxury homes, single-family homes, and condos for sale around Albuquerque. 

Although housing prices are affordable, the housing market is still relatively competitive, and homes stay on the market for about 21 days. However, popular homes and locations can go off the market as fast as 8 days. 

When considering the cost of living, housing costs are usually one of the most significant expenses to take into account. If you are planning to move to Albuquerque, it is vital that you search for the best neighborhoods and find the perfect location to move to. 

Income

Over the last five months, Albuquerque's employment rate has risen and is predicted to keep climbing. The city has grown exponentially in recent years, and the current employment rate is at about 4% in August 2023, according to the U.S. Bureau of Labor Statistics. 

As the employment rate rises, the median household income does as well. Currently, the median household income is about $56,336 per year. This is higher than the median household income of New Mexico as a whole, which is $54,020.

If you are searching for a job, Albuquerque is home to many companies, primarily in Aerospace, Film and Television, Agriculture, Global Trade, Outdoor Recreation, Manufacturing, and Tourism. This diverse and growing job market makes it one of the best places to find a job in the state. 

The largest employer in Albuquerque is the City of Albuquerque, which offers a variety of services to the community, including public safety, public works, and cultural and recreational programs.

In all, Albuquerque has a growing and diverse job market with a high median household income and low cost of living. This is the perfect combination for anyone looking to move to a new area, and the job market should be at the top of your checklist when moving into a new home. 

Food and Grocery

Grocery costs in Albuquerque are about 2% lower than the national average, which may not seem like a huge difference but will end up saving you a lot of money in the long run. As a somewhat overlooked expense, many don't realize how big of an impact food costs can have on your overall cost of living.

This percentage may vary based on your personal preferences, lifestyle, and budget. On average, a single resident spends about $7,053 on groceries per year and $9,312 per year as a family of four. 

To give you a better idea of the grocery prices, here are the average prices of everyday grocery items according to Payscale.

On nights when you don't feel like cooking, don't stress; Albuquerque is filled with many adorable restaurants, from authentic Mexican restaurants to elegant steak houses to charming casual spots. Check out the list below of the best local restaurants in Albuquerque. 

• Fork & Fig: This casual American eatery is a must-stop for locally sourced, delicious sandwiches, salads, and wraps. 
• La Guelaguetza: This charming restaurant has the best Mexican staples made by two chefs who were named James Beard Award semifinalists for Best Chef: Southwest in 2022. 
• Antiquity Restaurant: This old-school fine dining spot is known as the best place for any celebration. The elegant steakhouse features oysters, beef carpaccio, and bacon-wrapped filet mignon. 

Taxes

Many people moving to a new state don't take into account how taxes will impact their overall cost of living, although it can change drastically from state to state. Albuquerque has a sales tax rate of 7.63%, which is a total of state, county, and city sales tax rates.

The state of New Mexico's tax system is ranked 22nd overall on the 2023 State Business Tax Climate Index, meaning it is average compared to other states in the country. 

The property tax rate is 1.18%, second highest in the state. However, New Mexico has the lowest property tax rates in the country; the average effective property tax rate is 0.73%. 

If you're living in New Mexico and you make about $70,000 a year, you will be taxed $10,648. The average tax rate would be 11.67%, and the marginal tax rate would be 22%. This is a substantial amount of your money being used for taxes, so it is critical to consider how taxes will affect your cost of living in New Mexico. 

Transportation

Transportation expenses are 7% lower than the national average in Albuquerque. This is a combination of public transportation fares and gas prices. The city has a bus system through the City of Albuquerque Transit Department with affordable fares. The buses only cost $2 for one day, $12 for residents above 62 years old, mobility impaired, and students aged 10 through high school. 

Buses run all around town, and Rapid Transit (ART) is available to take you between Nob Hill, Downtown, and Old Town. The buses are the best way to get around the city, although the majority of residents have their own cars. 

If you are looking to save some extra cash, Albuquerque is known to be a relatively walkable city. Most neighborhoods are easier to travel around for residents who don't wish to own a car. 

If you travel in and out of Albuquerque frequently, don't worry because the Albuquerque International Sunport is less than 15 minutes from downtown. The Double Eagle II Airport is also based in Albuquerque, giving you many options for travel in and around the city. 

Healthcare

Healthcare expenses in Albuquerque are 9% lower than the national average. Your personal healthcare costs will vary greatly depending on where you go, the specialized service you need, and your type of healthcare. This is why it is so important to consider how the average compares to your current area.

Albuquerque has many hospitals in and around the city. The best hospital in the city is Presbyterian Kaseman Hospital, which provides a wide range of medical services for patients. 

In New Mexico, the health insurance cost will vary based on the metal tier you choose. These are the average premium costs for a 40-year-old in NM: Bronze: $323 per month, Silver:  $538 per month, Gold: $510 per month.

To understand the average healthcare costs, check out the average prices for standard doctor visits according to Payscale.

FAQ: Cost of Living in Albuquerque, NM

Here are some commonly asked questions about the cost of living in Albuquerque, NM.

Is Albuquerque expensive to live in?

Compared to the rest of New Mexico, Albuquerque is 2% lower, and compared to the national average, Albuquerque is 7% lower. Overall, it is an affordable place to live. 

Is rent expensive in Albuquerque?

Rent is around the same as it would be in any other city, but it also varies greatly depending on the location and home size. The average rent is between $969 and $1,474. 

Is it cheaper to live in Albuquerque or Santa Fe?

Albuquerque is considered a more affordable place to live compared to Santa Fe, although both are wonderful places to live, and you can't go wrong with either of them.

Is it cheaper to live in Texas or New Mexico?

Texas and New Mexico are both known as affordable places to live compared to the national average, although Texas is slightly more expensive, mostly due to the housing prices. 

What is the least expensive place to live in New Mexico?

Roswell is the least expensive place to live in New Mexico, with only about 48,400 residents; it is considered a mid-sized city. 

Cost of Living in Albuquerque, NM - The Bottom Line

Other than the neverending sunshine, there are countless reasons why you should move to Albuquerque. With many fun activities, restaurants, shops, great schools, and the low cost of living, there is no reason not to move here.

After understanding the cost of living in Albuquerque, you can decide the exact location to buy your new home. Weighing all the factors, such as the cost of healthcare, taxes, food, and more, are all vital when considering a move to a new area. 

New Mexico has many other amazing places to live, like Santa Fe, Las Cruces, Rio Rancho, and Los Alamos. If you find that New Mexico may not be for you, make sure to check out the surrounding states with relatively low costs of living, like Texas, Arizona, and Colorado. 

There are many things to look for when buying a house. To ease the transition, feel free to contact one of our highly qualified Real Estate Specialists to help you along the process. Our team at UpHomes is dedicated to helping you find the home of your dreams. Don't forget to check out the beautiful homes for sale in New Mexico.