What's the Cost of Living in Santa Fe, NM?

Are you considering moving to Santa Fe, NM, and want to know the real cost? Keep reading to learn all about the cost of living, median household income, and typical expenses.

Situated in the Northern part of New Mexico, Santa Fe is one of the most sought-after places to live in New Mexico. While most people believe New Mexico is all desert, it actually offers a great deal of green space and nearly year-round sunshine.

Since its admission to the United States in 1912, New Mexico boasts a deep history, stunning scenery, beautiful architecture, a diverse job market, and delicious cuisine. If you are planning on moving to or visiting Santa Fe, there will be no shortage of fun-filled things to do. 

From world-class art galleries to skiing, Santa Fe is the center for all things culture, adventure, and recreation. Sitting 7,200 feet up near the Rocky Mountains, the city is located in the valley of the Rio Grande, surrounded by 1.5 million acres of unspoiled national forest.     

Home to only 80,000 residents, Santa Fe may not be big in size, but it has more than enough to offer you, with over 400 restaurants, 250 art galleries, prime real estate, and 19 world-class museums. Before moving, it is vital to calculate the overall cost of living if you want to be completely prepared. Make sure you learn as much as you can about the cost of living in Santa Fe. 

Keep reading to learn all about the cost of living in Santa Fe, NM

Cost of Living

Compared to the national average, the cost of living in Santa Fe is about 12% higher. This is a combination of many factors which contribute to the cost of living. Healthcare, utilities, and transportation costs are all much lower than the national average. The main contributors driving up the cost of living in Santa Fe are housing and groceries. 

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

The typical Santa Fe household with two adults and two children must make about $81,217 per year to live comfortably. However, depending on your needs and family size, you can live here for much cheaper. 

New Mexico as a whole has a lower-than-average cost of living, which is one of the main factors attracting many people from all over the country. Due to population size, housing is the most expensive cost of living expense. However, you still have many options for housing as rent can be much more affordable. 

In all, Santa Fe is a relatively affordable place to live, but if you want more options in New Mexico, Albuquerque also has a low cost of living.

Real Estate

Out of all the cost of living expenses, you will most likely spend the most on housing, as it is higher than the national average. The housing market is somewhat competitive as the majority of homes stay on the market for about 46 days. You'll need to jump on the chance if you want your dream home in Santa Fe.

The median home price in Santa Fe is about $808,050, rising 5.5% from last year, according to the Santa Fe Reporter. The city offers many home options to check out, from classy townhomes to cozy single-family homes to breathtaking luxury homes.

Along with diverse home styles, home prices can be as low as $60K and as high as nearly $20M, meaning you have plenty of options when finding your dream home. 

Each neighborhood offers something unique; make sure to look at homes in your desired location. The average rent in Santa Fe is about $1,650, which is relatively affordable compared to other cities and towns. 

Whether you desire a quiet area to retire, rural living, access to the outdoors, or city life. Santa Fe has ample options for you to choose from.

Income

With over 88,000 residents, Santa Fe has an abundance of job opportunities. The job market is projected to grow quicker than any other area in New Mexico. More specifically, Santa Fe is projected to add over 32,250 more jobs in the upcoming years.

The unemployment rate in Santa Fe is at 3.4% as of September 2023, and just over 20,000 jobs were added in the state in 2023, according to the Department of Workforce Solutions. 

As a popular tourist spot, the hospitalist industry is the second largest employer in Santa Fe after the government. Another large employer is the art scene, as Santa Fe is known for being home to over 250 stunning art galleries and dealers. 

Many people are moving to the Santa Fe area as the technology-based sector grows. Companies like Vizzia Technology, Norsam Technologies, and Solstar Space Company are popping up around Santa Fe and could be a great place to find a job.

No matter your experience or expertise, Santa Fe has something for everyone. You can almost guarantee to find the right job in the right area here in Santa Fe. 

Food and Groceries

Food costs are one of the most overlooked expenses, but it is vital to take them into consideration as they vary greatly from city to city. 

Overall, grocery costs are only 1% higher than the national average. Realistically, you won't be paying much more than you would in any other city across the nation. 

The average family living in Santa Fe spends about $862 on groceries per month. 

Keep in mind that it all depends on where you shop, your preferences, and family size. There are many ways to cut down on food costs, but you'll undoubtedly want to eat out once you taste one of Santa Fe's best restaurants. Take a look at some of the local favorites here in Santa Fe. 

• La Plazuela At La Fonda: This picturesque restaurant features a high-class menu for breakfast, lunch, and dinner.  
• Cafe Pasqual's: This local favorite restaurant offers classic Mexican dishes from locally sourced ingredients. 

Taxes

The next overlooked expense is taxes, which can add up by the end of the year and vary greatly from city to city. It is absolutely essential to calculate how much you will be spending on taxes before you move to a new place. This is especially important if you are moving to a new position or starting a new job. 

The current minimum combined 2023 sales tax rate in Santa Fe is 8.19%. This is a total of state, county, and city sales tax rates. The New Mexico sales tax rate is currently 4.88%.

The effective property tax rate is the 10th highest in the state at 0.64%. New Mexico has a graduated individual income tax rate that ranges from 1.70% to 5.90%. For example, if you make $70,000 a year in New Mexico, you will be taxed $10,684.

Although the property tax rate is the 10th highest in the state, it is still relatively low. It is making Santa Fe one of the best places to move to as a retiree, as it is a moderately tax-friendly state. 

Transportation

Transportation costs in Santa Fe are much lower than the national average. Santa Fe offers many public transportation options, including a reliable and affordable bus system called Santa Fe Trails to take you around time. 

Santa Fe Pick-Up is a free shuttle that runs throughout town and stops at many of the most popular attractions, like Canyon Road and the Museum of International Folk Art. This is a great option if you are visiting and want to visit the city's best attractions for an affordable price.

If you are only visiting, a car isn't necessary, but if you are moving to Santa Fe, it is advisable to bring your own mode of transportation. As a small town, the downtown area is fairly walkable, but there are limited parking options.

The New Mexico Rail Runner Express is a great rail service option if you travel from Santa Fe to Albuquerque or other areas. 

The nearest airport in Santa Fe is the Sante Fe Regional Airport (SAF), which is only 9.6 miles from the city center. There are also two nearby airports in Albuquerque (ABQ) and Alamosa (ALS).

Healthcare

Along with transportation costs, healthcare costs in Santa Fe are much lower than the national average. New Mexico is working on completing the healthcare transparency website, which is scheduled for completion by December 31, 2023. This will include the average prices paid by New Mexicans with private insurance for many medical procedures, allowing residents with high deductibles to easily search for the highest quality and most affordable healthcare. 

Santa Fe has several highly regarded hospitals, including Chistus St. Vincent Regional Medical Center, Presbyterian Santa Fe Medical Center, and Santa Fe Indian Hospital. All three of them accept Medicare, but Presbyterian does not accept Medicaid. 

The average single adult without children spends about $3,282 on medical care in one year in Santa Fe. Two working adults with two children pay an average of $12,582 per year. 

Healthcare costs will vary greatly depending on where you go, the type of insurance you have, and your personal medical needs.  

FAQ: Cost of Living in Santa Fe, NM

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

What salary do you need to live in Santa Fe?

A household in Santa Fe with two adults and two children must make around $81,217 per year to live comfortably. This will vary greatly depending on your lifestyle needs and preferences. 

What is the average price of housing in Santa Fe?

In October 2023, the median home price in Santa Fe was approximately $819.9K, trending up every year. This will also change greatly depending on when you move, where you move to, and other factors.

Is it cheaper to live in Albuquerque or Santa Fe?

Overall, Albuquerque is more affordable than Santa Fe, but both are relatively affordable options if you are interested in New Mexico.

Is Santa Fe retirement friendly?

Santa Fe boasts a relaxed lifestyle and friendly community, making it one of the very best places for retirees in the state. There are many affordable retirement communities and peaceful neighborhoods to pick from.

Where is the most minor crime in New Mexico?

The top safest cities in New Mexico include Rio Rancho, Grants, Lovingotn, Anthony, Raton, and Alamogordo. Bigger cities like Santa Fe and Albuquerque are still seen as safe areas to live. 

Cost of Living in Santa Fe, NM - Our Final Words

Santa Fe is one of the less affordable places to live in New Mexico, but it is still an amazing option. The fundamental factor driving up the cost of living is the housing prices. This means you can still move to this fantastic city; just be prepared to pay a higher-than-average price for housing. 

With so many things to do and diverse neighborhoods, Santa Fe is an amazing location to retire, move to, or visit. Featuring delicious cuisine and views like no other place in the country, it is no surprise that so many people are moving to Santa Fe. 

New Mexico offers many beautiful places to live, and Santa Fe is one of the seven best places to live in the state. If you find that Santa Fe is not for you, there are still many other amazing places to live in New Mexico, like Albuquerque, Las Cruces, and Roswell.

Don't hesitate to contact one of our highly qualified Real Estate specialists to help you along the process. Our team at UpHomees 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.