When searching for the cheapest place to live in New Mexico, you’ll be happy to discover that the state’s cost of living is more affordable than the national average. It’s also geographically diverse with vibrant metropolitan cities, mountains, the Chihuahuan Desert, and rural villages. Before moving here, learn about the median income locations, the most affordable places to live in New Mexico, and where to get the cheapest rent.
Cost of living in New Mexico
The overall cost of living in New Mexico is 88.4, which is cheaper than the national average of 100. Expect to pay less for groceries, health care, pet rent fees, utilities, transportation, and housing than renters in most other states.
Some of the cheapest places to live in New Mexico based on median income alone are:
1. Los Alamos
2. Santa Fe
3. Alamogordo
4. Rio Rancho
5. Carlsbad
Los Alamos
Located close to the White Rock Canyon, Jemez, and Pajarito Plateau, Los Alamos is a paradise for hikers, mountain bikers, snowboarders, and skiers. The city has some of the best schools in New Mexico and low crime rates, making it ideal for families. Young professionals also thrive here.
The median income is above the national average, mainly because of the Los Alamos National Library, which sustains much of the economy. As such, the majority of the adult population has a master’s degree or higher accreditation.
The median family income is about $98,000 per year, and an apartment costs about $1,150 per month.
Santa Fe
Santa Fe is the capital city and the oldest state capital in the U.S. Its rich heritage includes the San Miguel Mission, one of the oldest churches in the U.S., and the Palace of the Governors, the oldest operating government building.
Santa Fe’s vibrant art scene includes the Georgia O’Keeffe Museum, plenty of shopping opportunities in the year-round farmers markets, and leisure activities for bikers, hikers, and snow skiers. Plenty of restaurants offer meals like burritos, sopapillas, and chiles.
The median household income is approximately $50,213 per year, and an apartment costs about $1,285 per month.
Alamogordo
In 1945, Alamogordo became famous as the test site for the first atomic bomb because of its isolation. A stone monument marks this historic spot. Today, it is a vibrant and family-friendly city with diverse suburban neighborhoods and parks, including the Alameda Park Zoo that has a program for saving the endangered Mexican wolf.
Some of Alamogordo’s economic activities include the military activities at The White Sands Missile Range and the Holloman Air Force Base. The White Sands National Monument is a top tourist attraction because of its white dunes. Another famous attraction is the balloon festival that happens every September.
The median household income is approximately $43,460 per year, and the average rent is about $1,000 per month.
Rio Rancho
Rio Rancho is among the most affordable places to live in New Mexico for families because of the availability of decent schools, libraries, sports facilities, nature trails, and parks. The elderly also enjoy the Sandoval County Senior Program, which offers transportation and in-house meals in partnership with the Meadowlark Senior Center and the Mid-Region Senior Program.
The median household income is approximately $59,243 per year, and the average rent is about $1,035 per month.
Carlsbad
Carlsbad has a magnificent cave system in its national park, and its economy also benefits from a rich deposit of natural gas, potash, and oil. Lake Carlsbad offers many family-friendly activities, including fishing and picnicking along the shores.
The median household income is approximately $48,058 per year, and the average rent is about $1,990 per month.
The Cheapest Place to Live in New Mexico
Renters can access most of the cheap places to live in New Mexico without compromising living standards. The cheapest neighborhoods are family-friendly, safe, and have many different apartment styles.
Some of the cheapest places to live in New Mexico based on rent prices include:
Grants
With a population of approximately 9,036 residents, Grants has a tight-knit society where you can easily get to know all your neighbors. The serene suburban feel makes it one of the best cheap places in New Mexico.
The average rent prices for various types of apartments are:
- Studio: $425
- One bedroom: $645
- Two bedrooms: $850
- Three bedrooms: $1,040
Lovington
As its name suggests, Lovington is one of the ideal cheap places to live in New Mexico for singles. Furthermore, the sumptuous Southwestern cuisine and friendly atmosphere attract many renters from other parts of the U.S.
Rent depends on the apartment type, but the average rates are:
- Studio: $695
- One bedroom: $845
- Two bedrooms: $1,100
- Three bedrooms: $1,295
Raton
Raton is one of the safest places in New Mexico, making it ideal for raising a family. The city offers cheap apartments and many affordable activities. For example, you can engage in camping, hunting, boating, and hiking at the Sugarite Canyon State Park.
Expect to pay the following rent prices:
- Studio: $590
- One bedroom: $665
- Two bedrooms: $750
- Three bedrooms: $1,040
Hobbs
Owing to its ability to provide many job opportunities and affordable housing options, Hobbs has been experiencing a rapid population increase over the years. Furthermore, the best neighborhoods are only a short commute from the city center and the Cowboy Hall of Fame.
You can get the cheapest place to live in New Mexico in Hobbs by choosing the following apartments:
- Studio: $402
- One bedroom: $660
- Two bedrooms: $753
- Three bedrooms: $906
Roswell
Roswell is famous for being an alleged crash site for an unidentified flying object (UFO) in 1947. Apart from the conspiracy theories, the residents are friendly and the place has amazing natural beauty.
You can find cheap rent in Roswell ranging from the prices shown below:
- Studio: $446
- One bedroom: $688
- Two bedrooms: $750
- Three bedrooms: $1,099
Frequently asked questions
New Mexico’s cost of living is generally lower than the national average, making it an attractive option for those looking for affordable living expenses.
The average cost of a home in New Mexico is around $223,000, according to Zillow. However, housing costs can vary widely depending on the city or region. For example, in Santa Fe, the average home price is much higher, at around $615,000, while in Las Cruces, it is closer to the state average at around $219,000.
The cost of utilities in New Mexico varies depending on the season, location, and usage. On average, New Mexico residents pay around $121 per month for electricity, $52 per month for natural gas, and $55 per month for water and sewer, according to Numbeo.
The average cost of transportation in New Mexico varies depending on factors such as the type of vehicle and the distance traveled. According to data from AAA, the average cost of gas in New Mexico in 2021 was around $2.74 per gallon. Public transportation options vary by city, but some cities like Albuquerque and Santa Fe offer affordable bus and light rail services.
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