Pros of Living in New Mexico
1. The locals business are actually fun to support
You know the drill. In this day and age, if you want to be considered a “good person” (whatever) then you have to support local businesses. If you’re anything like me, you’ll (grudging) make your way over to the nearest ma-and-pa shop, feign a smile, clutch your wallet and begin acting cool while the price tags make you sweat.
You’ll power through though — because you have to — as you wipe your cold clammy hands to ensure you can properly Geo-tag the location so your “friends” know you’re a good person. $4,000 and one liver later, you’ll walk out with a discounted calendar (don’t worry, the last six months will still be valid) and a stapler, patting yourself on the back.
Well, if this sounds familiar to you, fret not because the locals shops and businesses in New Mexico are actually fun to support. Local business are the backbone of New Mexico and truly a breath of fresh air from the ones I’m used to on the east coast (*shudders remembering that one shop in SoHo). One of my favorite things about living in New Mexico is having the opportunity to get everything I need (are reasonable prices) from local businesses rather than needing to rely on big box stores (of which there are plenty though).
While much of the country has gone whole hog into the franchise and chain craze with Applebee’s and Bed Bath & Beyond on every other corner, New Mexico is still a bastion for local business and it’s easy to be proud of that. Living in New Mexico you’ll find a refreshing amount of local restaurants and businesses that serve as pillars of the community and that we love to support. Join the fun.
2. Bountiful outdoor recreation
If you love the outdoors then there’s definitely a place here for you. Living in New Mexico you’ll find just about every outdoor activity that doesn’t involve an ocean is at your fingertips. In the northern parts of the state you’ll find lots of winter recreation activities as well as everything that comes along with mountains, forests, lakes, and rivers. Some of the rec you can find here includes fishing, hunting, skiing, boating, caving, hiking, rock climbing, camping, and backpacking just to scratch the surface.
3. The lovely dry climate
This one cuts both ways but as someone who lived in the southeastern US for a time (Georgia), I can safely say I prefer the dry climate of New Mexico to the humid climate of the eastern United States. Say goodbye to multiple outfit changes each day due to the sweat-drenching humidity and hello to clean, crisp (sometimes quite hot), air.
If you’re used to the hot, wet blanket of east coast summers you can kiss that goodbye. Living in New Mexico is also great for folks with chronic asthma, certain (most) allergies, and upper respiratory issues due to our dry climate.
4. Delicious southwestern cuisine
This one could have easily been at the top of the list but here we are. The downright scrumptious cuisine of the southwest makes living in New Mexico worthwhile in and of itself. Alright, I might have gotten a little ahead of myself on this one but hear me out. New Mexico has the best southwest cuisine in the US (sorry Texas & Arizona)
Here you’ll find some of the best Mexican food in America along with some really great barbecue and more. And our famous hatch green chile peppers go great on everything.
5. Abundant sunshine
Pining for a place with endless desert sunshine? Living in New Mexico you’ll find just what you’re looking for. New Mexico is the second sunniest state in America. Albuquerque alone sees a brilliant 310 days of sunshine per year while Las Cruces in the southern part of the state claims 358 days of sun!
Having lived on the east coast as well as the pacific northwest, I did not realize the effect that sun really plays on your mood until leaving New Mexico and then coming back. What a game changer! Just knowing the sun will come out tomorrow makes all the difference for me.
6. Relaxed way of life
Sit back, crack open a beer, and let’s chat about the unofficial pastime of New Mexico – taking it easy. If you’ve seen The Big Lebowski, let’s just say the dude abides here in New Mexico. Those moving to New Mexico from busier cities like New York will probably notice this change of pace immediately and might not find it’s for them. People here just seem to be calmer overall and carry a bit less stress than the average person. This allows for some genuine friendliness and good times if you’re open to it.
7. People are open
One of my favorite parts of living in New Mexico is how open the people are. You can go to a bar or restaurant and get into some really interesting and deep stuff (if you want). People living in New Mexico seem to be perhaps a bit more settled, happy, and perhaps OK with where they are in life. As a result we’re pretty open about the life choices that got us here. I certainly don’t speak for everyone and would love to hear if your experience has been different in the comments below, but for me it’s refreshing.
8. Beautiful natural scenery
I’m going to go out on a limb here and say New Mexico is the most underrated state in the US in terms of natural scenery. People visiting from different parts of the country are often stunned at the landscapes here. As an outdoors sort of a person myself, I have pinch me moments pretty frequently just looking around at how beautiful it is here.
In the southern part of the state we recently got our second national park, White Sands, which is otherworldly and now at least semi-famous. The other one is Carlsbad Caverns which is absolutely breathtaking as well in a totally different, subterranean sort of way.
My favorite is the northern part of the state – the Carson National Forest ablaze with aspens in the fall – just wow. Then in between you’ve got all sorts of incredible nature with the highlight for me here being the pristine Gila Wilderness.
9. Low cost of living
Looking to save some money on your move? Perhaps looking to retire in New Mexico? Good news on this front. New Mexico is the second most affordable state in the western half of the United States behind Wyoming. The cost of living in New Mexico is 7% lower than the national average meaning overall things are cheaper here.
Housing is way below the national average (more on that below), utilities are less expensive here, as are groceries, and most everyday items. The cost of living in New Mexico is one of the top reasons I enjoy living here. One downside to this, however, is moving anywhere else on the west coast seems impossible due to the comparatively huge price hikes.
10. Affordable housing
This one is bound to perk up the ears of those millennials who have accepted their fate of never owning a home. I can safely say the dream is still alive in the land of enchantment. New Mexico may be the last state in the west where people can actually afford to buy a home. The median home price in New Mexico is currently around $300k which is a whopping 30% less than the national average of $428K.
While prices have risen in recent years in New Mexico along with the entire country, there’s still time to “get in” before home ownership in America goes the way of the fax machine.
- $399k−1.4%FRED / realtor.com · 2026-0924th cheapest of 50 states
- $316k±0Zillow Home Value Index (state) · 2026-0920th cheapest of 50 states
- 4.7%±0 ptBLS Local Area Unemployment Statistics · 2026-09tied for 42nd lowest of 50 states
- $4.31−2.2%AAA · 2026-10-2131st cheapest of 50 states
- 92.2US = 100BEA Regional Price Parities (SARPP) · 2024
Locals’ verdictGrade New Mexico on cost, weather, jobs, people and safety · where it stands on our rankings
Cons of Moving to New Mexico
1. Lack of jobs
Got a job lined up already? Phew, you’re in the clear. Because let me tell you, moving to New Mexico without a job can be a very trying time. New Mexico is home to the 13th highest unemployment rate in America and even in this job friendly economy, finding work here can be tough.
Don’t take my word for it. New Mexico is currently ranked the 3rd worst job market in the country. The jobs that exist seem to be heavily concentrated around the extreme ends of the scale. If you’re looking for entry level work (of the service industry variety), then there are probably open positions out there. Or, if you’re a nuclear physicist then there’s some good government jobs for you as well. Most folks in between will likely struggle.
Disagree with me? Let me know! This post is updated regularly based on comments to reflect the current environment.
2. Low paying salaries, especially for the west coast
Hooray! You found an employer that’s hiring and they’ve chosen lucky old you for the position. Great, right? Not so fast, did you check to see what the salary is? Chances are it’s lower than what you were expecting. That’s because New Mexico is home to the lowest wages in the western United States and the 12th lowest wages overall.
Even if you’re a literal rocket scientist or PhD holder you’ll find the jobs here for you (heavily concentrated in the labs and contractors up in Los Alamos) are lower paying than elsewhere in the country.
3. One of the worst economies
If the job situation has you sweaty then the overall economic conditions in the state are not going to help. Living in New Mexico you’ll find the 6th worst economy in the US. The rankings are based on the overall business environment, job opportunities, and growth.
The state’s economy is largely based on natural resources extraction, we’re talking oil, natural gas, etc, as well as tourism. Lately the oil and gas industry has been negatively impacted by the decline in global oil prices, which has lead to job losses and economic downturn in some areas.
New Mexico has, however, been making efforts to diversify its economy and attract new industries, such as renewable energy, technology, and film production. The fruits of these efforts are still waiting to ripen.
4. The dreaded windy season
Oh the windy season, how I loathe thee… For most folks around the country, the end of winter and the coming of spring, with its beautiful blooms and bright green foliage, is something that comes with a high level of dare I say, eager anticipation.
Thinking of all the outdoor activities that come with warmer weather and more sunshine brings joy to all. That is unless you find yourself living in New Mexico where those thoughts are indelibly coupled with the dreaded, the loathsome… the windy season (que the lightning flashes with ensuing dramatic dum, dum, dumms)..
Now let’s be clear. I’m not talking about a nice, easy breeze or even a steady, perhaps calming exchange of air. But rather, we’re talking about the holy hell hold your child (yes, children literally get blown over by it) variety of wind.
Usually starting in late February (but honestly now seems like no day is safe) and lasting through at least July, the winds start picking up. Later in the morning they begin gaining steam, getting up into the 20mph range (or much higher) by the afternoon, before dropping back down in the evening (if we’re lucky).
Some days the winds are full on gale force into the 70mph or higher range making living in New Mexico a true fright at times. For me, this would be the main reason I would move out of New Mexico again. It’s that level of annoyance.
5. The lack of basic nightlife
Let me preface this section by saying I am by no means a night owl and I’m not the type that’s looking for a wild night out on the town. My version of an eventful night goes something like a nice dinner, perhaps a cozy bar with a cocktail or two, and if I’m feeling especially outgoing then maybe even pool or shuffleboard at a second bar.
With that being said, I find that even those fairly basic essentials of night life are fairly hard to come by in New Mexico. They can be found in Albuquerque if you really hunt it down and Santa Fe as well, but it’s nothing like what you might expect for the biggest cities in a state. So, if you’re big on night life take that into your considerations whether moving to New Mexico makes sense.
6. The isolation is real
This is one that could cut either way depending on what you’re looking for, but for me it’s definitely a con of living in New Mexico. Here’s why. Most folks don’t realize that New Mexico is the 5th largest state in the country and with just 17.2 residents per square mile, New Mexico is also the 6th most sparsely populated state in the US.
Getting from one city or town to the next is an ordeal that requires quite a bit of driving. Sure, the drive from Albuquerque to Santa Fe is just an hour but pretty much getting everywhere else requires an hours long haul. And on that haul, there’s often very little in between.
I’ve had trips where I get thirty minutes into the drive and have to quickly do the math whether or not I have enough gas to make it to where I’m going because there’s literally nothing in between the place I’m coming from and the place I’m going to. This can be hard to relate to for east coasters where there’s a gas station and/or town every few miles or so. Out here, there’s a lot of open space and big sky.
7. The drought is bad and getting worse
Prior to the heavy winter rains of 2022/2023 most of New Mexico was in severe drought conditions. And while, for the time being we’ve seen a major reprieve, we know it will not last. Even still, a full forty percent of New Mexico is in drought conditions with 20% being severe or extreme.
The drought has made the windy season worse over the years as the air moves a lot faster without moisture slowing it down. In the future the drought is not expected to get any better and will likely worsen significantly in the coming decade.
8. Education is not a priority
If you’ve got young children or are planning on having a family in the near term then be sure to really do your homework when it comes to finding a good school or school system. It won’t be easy. Are you ready for this? New Mexico has the worst ranked education system in America. 50 out of 50 states.
And while it seems like we hit the bedrock portion of rock bottom a while ago, someone must’ve found some drilling equipment because each year we seem to be getting deeper and deeper into this hole. Not surprisingly, New Mexico is the 8th least educated state in the US with depressingly low literacy levels (more on that below).
And if you’re thinking maybe there’s an opportunity for the one-eyed man to rule in this land of the educationally blind, think again. A New Mexico city happens to have the highest concentration of PhD holders in the country – Los Alamos (or Atomic City) where the government has lots of high tech, pretty secretive work going on.
9. Shockingly low literacy
Here’s another tragic con of living in New Mexico. Of all the states in the US, New Mexico has the lowest literacy rate. That’s right, 50 out of 50 (again). Let that sink in. New Mexico’s literacy rate is a mere 70.9% as of the writing of this article (and we update regularly).
Living in New Mexico you’ll notice things are all too commonly, and embarrassingly misspelled. Not just on makeshift roadside signage but in newspapers, on local TV stations, and actual roadside signage (the DOT legitimately misspelled Albuquerque). I sometimes wonder if spellcheck doesn’t work in this state. But then the sad reality sets in of the failings of our education system here.
10. High violent crime rates
Looking for a safe spot to call home? This is not a category where New Mexico shines. New Mexico is home to the 2nd highest violent crime rate in the United States. Where there’s high poverty, poor education, and little economic opportunity you’ll find crime. Such is the case in New Mexico where desperate times lead folks to act out of desperation. While the state has introduced some initiatives in recent years to combat the alarming levels of violent crime there’s still a long way to go.
11. The terribly dry climate
Some of you may be wondering if you’re having a little Déjà vu. You’re not. This was in fact listed as a pro as well. And I do hate to be that guy, but here’s the deal. While I personally love the dry climate, my skin does not. Neither do my lips. They especially hate the dry climate. That makes this moisturizer (I’d buy it by the gallon if they sold it!) and this lip balm (life changing!) non-negotiable while living in New Mexico.
There are moments where I envy my cousins on the east coast and their beautiful skin. But those moments are fleeting. Far more fleeting than the miserable humidity they must cope with for most of the year.
12. Low life expectancy
Rounding out the cons of living in New Mexico is perhaps the greatest downer of all. An actual matter of life and death. New Mexico has the 9th lowest life expectancy of any state in the US. Average life expectancy in New Mexico is just 74.5. If that doesn’t sound too bad then compare that to Hawaii where folks live an average of 6 more years (80.7 years). The low life expectancy goes hand and hand with the lack of education and high poverty rates.
Tell the next person the thing the guide misses.
FAQ – Life in New Mexico
Is New Mexico a good place to live?
Is New Mexico a good place to live?
New Mexico is a good place to live for certain folks but there are also challenges to consider. The state has a diverse culture, rich history, and beautiful natural landscapes, which may appeal to some people. New Mexico also offers a relatively low cost of living compared to other states in the U.S.
On the other hand, New Mexico’s economy has some challenges, such as a relatively high poverty rate, lower median household income compared to the national average, and a higher unemployment rate. The state’s economy is largely based on the extraction of natural resources, such as oil, natural gas, and minerals, as well as tourism and government services.
So, it depends on what you are looking for. If you like outdoor activities, nature and history, and you don’t mind living in a place with a lower cost of living, New Mexico is a good place to live. But if you’re looking for a place with a strong economy, it might be hard to find in New Mexico.
Is New Mexico a good place to retire?
Is New Mexico a good place to retire?
Yes, New Mexico is a good place to retire for people seeking sunshine and a lower cost of living. The state has a diverse culture, rich history, and beautiful natural landscapes, which may appeal to some retirees.
New Mexico also offers a relatively low cost of living compared to other states in the U.S. and it’s known for its sunny and dry weather, which can be beneficial for retirees who are looking to avoid harsh winters.
On the other hand, the state has a relatively high poverty rate, lower median household income compared to the national average, and a higher unemployment rate, which can be a concern for retirees.
Is marijuana legal in New Mexico?
Is marijuana legal in New Mexico?
Yes, recreational marijuana is now legal in New Mexico. In 2021, the Governor of New Mexico, Michelle Lujan Grisham, signed legislation to legalize marijuana for adult use.
What are the best cities in New Mexico?
What are the best cities in New Mexico?
A few of the best cities in New Mexico include:
- Santa Fe: Known for its art and cultural scene, historic sites, and outdoor activities. It’s the capital of the state and it’s known for its adobe architecture, museums, and the Santa Fe Opera.
- Albuquerque: The largest city in the state, offers a mix of modern amenities and Old Town charm. It’s known for its hot air balloon festival, the Sandia Mountains, and the Albuquerque Biological Park.
- Taos: Known for its art scene and natural beauty, Taos offers skiing in the winter and hiking and rafting in the summer. It’s also home to the Taos Pueblo, a UNESCO World Heritage Site.
- Las Cruces: Located in southern New Mexico, Las Cruces offers a mild climate and a low cost of living. It’s home to the New Mexico State University and offers a variety of outdoor activities.
- Roswell: Known for its UFO and extraterrestrial history, Roswell offers a variety of museums, tours and events related to this topic. It’s also a good place for outdoor activities.
What are people that live in New Mexico called?
What are people that live in New Mexico called?
People that live in New Mexico are commonly referred to as “New Mexicans.”
New Mexico is the what state? (nickname)
New Mexico is the what state? (nickname)
New Mexico is known as the land of enchantment.
How is the weather in New Mexico?
How is the weather in New Mexico?
The weather in New Mexico can vary greatly depending on the region and the time of year. The state is located in the southwestern United States, and it has a generally arid climate with hot summers and mild winters.
In the summer months, temperatures can reach over 100°F (38°C) in some areas, particularly in the southern and eastern parts of the state. Thunderstorms are also common during the summer, providing some relief from the heat.
In the winter, temperatures are generally mild, with lows in the 30s°F (-1°C) and highs in the 50s°F (10°C) in most parts of the state. However, the northern mountains can receive heavy snowfall, making it a popular spot for skiing and other winter sports.
New Mexico is known for its sunny and dry weather, which is why it’s a good place for retirees and people looking to avoid harsh winters. In general, the state is considered as a place with a semi-arid and desert climate.
It’s important to note that the weather can change rapidly, and thunderstorms and flash floods can occur, particularly in the summer months, so it’s always important to stay informed and prepared when traveling or participating in outdoor activities.
What’s the cost of living in New Mexico?
What’s the cost of living in New Mexico?
The cost of living in New Mexico is generally lower than the national average. According to data from the Council for Community and Economic Research, the cost of living index for the state is around 92.5, which means that it is 7.5% lower than the national average.
Housing, healthcare, and utilities are the main categories where cost of living is lower in New Mexico than the national average.
What’s the median home price in New Mexico?
What’s the median home price in New Mexico?
The median home price in New Mexico is currently $304,147.
What are the top industries in New Mexico?
What are the top industries in New Mexico?
The top industries in New Mexico include:
- Oil and gas: New Mexico is a major oil and gas producing state, with oil and gas being the largest contributor to the state’s economy. The state is home to several large oil and gas fields, including the Permian Basin and the San Juan Basin.
- Tourism: New Mexico is known for its natural beauty, cultural heritage, and outdoor recreation opportunities. The state has several national parks, such as Carlsbad Caverns National Park and White Sands National Park, as well as historical sites, such as Taos Pueblo and the Chaco Culture National Historical Park, that attract millions of visitors each year.
- Federal government and military: New Mexico is home to several federal government and military facilities, such as Kirtland Air Force Base, White Sands Missile Range, and the Los Alamos National Laboratory, which provide significant employment opportunities for the state’s residents.
- Film production: New Mexico has a growing film industry, thanks to its diverse landscapes, skilled workforce, and generous film incentives. The state has been the location for many movies and TV shows, such as The Avengers, Breaking Bad, and The Lone Ranger.
- Renewable energy: New Mexico has significant potential for renewable energy, particularly solar and wind power. The state has been investing in renewable energy to create jobs and attract new industries to the state.
- Manufacturing: New Mexico has a diversified manufacturing sector, with a focus on aerospace, electrical equipment, and machinery.
What’s the median salary in New Mexico?
What’s the median salary in New Mexico?
The median salary in New Mexico is currently $51,243.
Is New Mexico a tax-friendly state?
Is New Mexico a tax-friendly state?
Yes, New Mexico is a tax-friendly state. The taxes in New Mexico are generally considered low compared to other states with a flat personal income tax rate of 4.9%.
There is no state sales tax on food, prescription drugs and medical devices, and the state has a relatively low property tax rate.
Map of New Mexico
Pros & Cons of Moving to New Mexico (Summary)
- Local businesses
- Bountiful outdoor recreation
- Lovely dry climate
- Delicious southwestern cuisine
- Abundant sunshine
- Relaxed way of life
- People are open
- Beautiful natural scenery
- Low cost of living
- Affordable housing
- Lack of jobs
- Low paying salaries
- Terrible economy
- The windy season
- Lack of nightlife
- Isolation
- The drought
- Poor education
- Low literacy
- High violent crime rate
- Terrible dry climate
- Low life expectancy
Compare the Pros vs Cons of Living in New Mexico
| Pros of Moving to New Mexico | Cons of Living in New Mexico |
|---|---|
| Local businesses | Lack of jobs |
| Bountiful outdoor recreation | Low paying salaries |
| Lovely dry climate | Terrible economy |
| Delicious southwestern cuisine | The windy season |
| Abundant sunshine | Lack of nightlife |
| Relaxed way of life | Isolation |
| People are open | The drought |
| Beautiful natural scenery | Poor education |
| Low cost of living | Low literacy |
| Affordable housing | High violent crime rate |
| Terrible dry climate | |
| Low life expectancy |
Helpful Related Links
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What Moved in 2026
Update from The Honest Local, September 2026: everything from here down was added after the original local wrote this guide, with a source for each figure.
On September 1, 2026, 97.1% of New Mexico was in drought. Two years ago that number was 40%.
Housing stopped being the cheap part. Realtor.com’s median listing price for New Mexico is $399,475Median listing price, realtor.com via FRED, September 2026. Updates itself when the source does. as of September 2026, and Albuquerque’s sat at $418,600. Santa Fe listed at a median of $808,475 the same month.
The rest of the bill is still low. MERIC’s second quarter of 2026 index scored New Mexico at 90.2Cost of living index, MERIC, second quarter of 2026. housing 82.4. Updates itself when the source does. against a national 100, the 13th cheapest state and the cheapest in the West. Albuquerque rents actually fell 0.7% in the year to September 2026 (Apartment List, median $1,219).
The drought went from bad to nearly total. On September 1, 2026, 97.1% of the state was in drought and 77.9% was in severe drought or worse, per drought.gov. Two years ago that first number was 40%.
Jobs are better, pay is not. WalletHub’s 2025 jobs ranking moved New Mexico up to 28th. Unemployment was 4.7%Unemployment rate, BLS, September 2026. Preliminary. Updates itself when the source does. in September 2026, tied for the 7th-highest of the 50 states we track. Median household income was $64,140 in 2024, about 23% under the US figure.
Child care went free. New Mexico now covers child care for every family regardless of income, paid straight to the provider, and the 2026 Legislature wrote it into state law. For a young family that’s a bigger raise than any tax cut.
November 3, 2026 is a big ballot. The governor’s office is open (Lujan Grisham can’t run again), plus a US Senate seat and the House races. Whoever wins inherits the oil money and the school rankings in the same envelope.
Cost of Living in New Mexico
New Mexico runs about 10% cheaper than the country as a whole. That’s MERIC’s second quarter of 2026 index, 90.2Cost of living index, MERIC, second quarter of 2026. housing 82.4. Updates itself when the source does. against a US of 100. Housing scores 82.4, utilities 79.4 and groceries 95.8 on the same index, and the Bureau of Economic Analysis price parity for 2024 backs the headline up at 92.2, a hair less generous. The bargain is housing. BEA scores New Mexico housing at 73.6, a full quarter under the national figure, while goods come in at 96.1, which is to say a gallon of milk costs what it costs everywhere.
Housing is where the discount is shrinking. Zillow’s typical home value for the state is $315,812Typical home value, Zillow, September 2026. New Mexico. Updates itself when the source does. as of September 2026, against $366,157Typical home value, United States, Zillow, September 2026. Updates itself when the source does. nationally, so you’re still about 14% under. Asking prices are another matter. Realtor.com’s median listing is $399,475Median listing price, realtor.com via FRED, September 2026. Updates itself when the source does. here and $419,250Median listing price, United States, realtor.com via FRED, September 2026. Updates itself when the source does. nationally, and that gap is nearly gone. The typical renter household hands over 30.1% of its income (Census, 2020 to 2024), right on the line where the housing people start using the word burdened.
The rest of the monthly bill. Regular gas is $4.31Regular gas, AAA, October 21, 2026. Updates itself when the source does. (AAA), the 20th-priciest of the 50 states we track, so no help there. Residential electricity ran 16.09 cents a kilowatt hour in July 2026 against 18.31 nationally (EIA), so the swamp cooler is cheap to run. State income tax tops out at 5.9%Top state income tax rate, the Tax Foundation, 2026. Updates itself when the source does. across 6State income tax bracket note, the Tax Foundation, 2026. graduated: 6 brackets, top 5.9% starts at $210,000 (single filer). Updates itself when the source does. brackets. The property tax bill is genuinely small, an effective 0.70% with a median annual bill of $1,731 by the Census Bureau’s count (2020 to 2024), or 0.63% by the Tax Foundation’s.
Cost of living by city in New Mexico
Statewide averages hide a lot here. Houses in Santa Fe and Los Alamos price like Denver, in Roswell and Silver City like 2015. BEA only prices metro areas, so the four small towns get a blank in that column.
| Metro area | Typical home | Typical rent | Prices vs US | Unemployment |
|---|---|---|---|---|
| Albuquerque | $349,900 | $1,499 | 95.5 | 5.5% |
| Santa Fe | $552,700 | $1,922 | 98.8 | 4.9% |
| Las Cruces | $287,900 | $1,469 | 90.2 | 6.2% |
| Farmington | $281,600 | $1,303 | 87.7 | 6.4% |
| Los Alamos | $581,400 | $2,541 | 2.7% | |
| Taos | $438,500 | $1,994 | 6.0% | |
| Roswell | $172,900 | $1,302 | 5.7% | |
| Silver City | $186,100 | $1,329 | 5.8% |
Read that table twice. Farmington is the cheapest of the four metros BEA prices, 12% under the US, and it also has the highest unemployment on the list. Santa Fe is the reverse, the priciest of the four with the lowest unemployment of the four.
Where to Live in New Mexico, by Who You Are
Families with kids
The biggest reason to move here with small kids is two words, child care. New Mexico now covers child care for every family regardless of income, and the Early Childhood Education and Care Department puts the saving at about $12,000 per child a year. The fastest-growing big city is Rio Rancho, which went from 104,047 people in 2020 to 112,524 in 2024 per the Census Bureau, more growth than Albuquerque, Las Cruces or Santa Fe managed. It sits on Albuquerque’s northwest shoulder, shares Albuquerque’s job market, and its homes are counted in the Albuquerque row of the table. Los Alamos is the lab town and prices like it, a $581,400 typical home and $2,541 typical rent, the highest of any town in the table, and you’ll pay it gladly if one of you works up the hill.
Retirees
Las Cruces is where retirees land. A claimed 358 days of sun, a $287,900 typical home, $1,469 typical rent, prices 10% under the US, and New Mexico State University keeps the town from feeling like a waiting room. Silver City ($186,100 homes, $1,329 rent) and Alamogordo ($233,500 homes) are the budget versions with mountains attached. Santa Fe is the one you retire to when money isn’t the question. The catch for anyone over 60 is medical care outside Albuquerque and Santa Fe, and a Las Cruces local said it plainly this year.
Thank you for this honest report. I live in Las Cruces, and one negative report that needs to be addressed is the lack of good doctors. While we do have good doctors, so many doctors had to leave the state because of policy changes after covid, that it is really hard to get good medical treatment now.
We also have extremely poor governance here. It is very frustrating to be the bottom of all the states in education, economy, and medical help. This is absolutely a reflection on our state government, and yet it has not changed for several years.
Vanna Granger, in the thread below, February 2026
People in their 20s
Albuquerque, and it isn’t close. It has the state’s biggest job market and rent you can carry on a first salary, $1,455 typical for the city itself per Zillow in August 2026 (Apartment List’s median, which counts apartments only, is $1,219). Pay runs low and the nightlife is quiet for a city of half a million, though the music scene is better than you’d guess, and a working jazz musician in the thread below says there are jam sessions every week. Santa Fe is the prettier version with $1,922 rents and an art economy, and Las Cruces is the college town version with NMSU and $1,469 rents. Anywhere smaller and you’d better already know why you’re going.
Remote workers
You’re the person New Mexico was built for, because you bring the salary the state can’t pay. Taos ($438,500 homes, $1,994 rent) and Santa Fe are the scenery-first picks, and the altitude is real, 7,000 feet in Santa Fe, so give yourself a month. Las Cruces and Farmington are the cheap-and-sunny picks. And if you want a house for under $175,000, Roswell prices like that, And if isolation sounds like a feature, look at the eastern plains around Portales.
I bought a house in floyd , new mexico in April of 2021 and I absolutely love it there! I love the friendliness of the people /neighbors , everyone has been so helpful in making my transition very easy and nice.
I was born and lived in California for 43 years and i am so tired of it . The people suck ,the cost of living is very high! I sold my house and decided to buy out of state in new mexico because i couldn’t afford to buy another house in California ! Everyone and i mean everyone from my realtors to the title company to the neighbors and everyone in general was so helpful and wonderfully nice!
I love living in mew mexico !! And the scenery is my favorite it is so much more beautiful than California. And with my COPD(chronic obstructive pulmonary disease) with emphysema and other health issues i can live comfortably .
And i dont have to love in the desert anymore i really like rhe great plains its beautiful and i love the isolation!
AK, in the thread below, April 2023
Moving to New Mexico, the Checklist
The stuff nobody writes about and everybody Googles. Most of this comes from official state and county pages, checked September 24, 2026, and the links go to the source so you can see if a fee has moved.
- Driver’s license. Bring a current out-of-state license and you skip the written and road tests, so the only thing you can fail is the eye chart. REAL ID wants one proof of your identification number, one proof of identity and two proofs of New Mexico residency. It’s $18 for four years or $34 for eight, plus a one-time $15 DWI records check on everyone moving in from another state, which is New Mexico’s way of saying hello. So $33 or $49 all in. Do it the week you get the lease. Source, New Mexico MVD, apply for a new driving credential.
- Your car. First registration in your name is in person too, and a car from out of state needs a VIN inspection first. Most field offices do them, some want an appointment, so call before you drive over. Bring the title, an odometer statement, proof of insurance at New Mexico’s minimums ($25,000 per person, $50,000 per accident, $10,000 property damage), two proofs of residency and proof of identity. Passenger registration runs $27 to $62 a year depending on weight and model year, or $54 to $124 for two years. Bernalillo County, which is Albuquerque, also wants an emissions test. Source, New Mexico MVD, register your vehicle.
- Income tax. Spend 185 days a year here, or call it home, and the state counts you as a resident and taxes all of your net income (Section 7-2-2 NMSA 1978). If you file a federal return, you file a PIT-1 here. Rates top out at 5.9%Top state income tax rate, the Tax Foundation, 2026. Updates itself when the source does. (Tax Foundation, 2026). There’s a refundable Working Families Tax Credit worth 25% of your federal earned income credit (2023 rate). Source, New Mexico Taxation and Revenue, personal income tax overview.
- Property tax. Your taxable value is one third of the assessed value, and a home’s valuation can only rise 3% a year while the same person owns it. Here’s the part that bites a mover. The cap resets when a house sells, so the year after you buy, the county brings your value up to what you paid, and the previous owner’s nice low number goes away. The 0.70% average up top is pulled down by people who’ve owned for years. Source, Bernalillo County Assessor, for new homeowners, and the assessor’s FAQ for the one-third rule.
- Child care. Apply through the Early Childhood Education and Care Department, by phone at 1-800-832-1321 or at a field office, with photo ID, the kids’ birth verification and proof of New Mexico residency such as a lease or a utility bill. Source, New Mexico ECECD, child care assistance.
New Mexico vs Arizona, Colorado and Texas
Everybody shopping New Mexico is shopping a neighbor too, so here are the same numbers side by side.
| New Mexico | Arizona | Colorado | Texas | |
|---|---|---|---|---|
| Prices vs US (100) | 92.2 | 100.7 | 103.1 | 97.1 |
| Housing vs US (100) | 73.6 | 106.8 | 127.4 | 96.5 |
| Typical home | $318,200 | $418,000 | $532,700 | $299,400 |
| Median household income, 2020 to 2024 | $64,059 | $79,964 | $95,470 | $78,476 |
| Unemployment | 4.7% | 4.9% | 4.0% | 4.4% |
| Violent crime per 100k | 648 | 383 | 438 | 349 |
| Property crime per 100k | 2,351 | 1,541 | 2,235 | 1,813 |
| Top income tax rate | 5.9% | 2.5% | 4.4% | none |
| Effective property tax (Census) | 0.70% | 0.48% | 0.48% | 1.49% |
| Combined sales tax | 7.68% | 8.54% | 7.89% | 8.20% |
| Movers in 2024 | -1,571 | +34,902 | +5,422 | +85,267 |
Against Arizona. Arizona costs 8 points more and its houses cost $100,000 more, and its violent crime rate is 40% lower. Arizona’s flat 2.5% income tax is the lowest of the three that charge one. What you get here for the trade is rents about 30% under Arizona’s and summers you can go outside in.
Against Colorado. If you’re being priced out of the Front Range, Taos is the same mountains for less, $438,500 against $559,700 in metro Denver, and Farmington, an hour from Durango, is $281,600 against Durango’s $687,200.
Against Texas. This is the closest fight.
Questions people ask about New Mexico
What do I need to do when I move to New Mexico?
Three trips and one form. Once you’re a resident, swap your license at an MVD field office ($18 for four years, plus a one-time $15 records check for out-of-state movers), register your car in person with a VIN inspection if it came from another state, and file a PIT-1 income tax return if you file a federal one, since 185 days here makes you a resident. If you buy, expect the county to reset your home’s value to what you paid the year after. The full checklist with the state’s own links is in the guide above.
Is New Mexico cheaper than Texas, Arizona or Colorado?
On the whole bill, yes. Crime runs higher here than in all three. The side-by-side table is in the guide above.
Where in New Mexico should I live?
It depends on who you are, and the guide above sorts it. Families lean Rio Rancho and Los Alamos, retirees lean Las Cruces, Silver City and Santa Fe, people in their 20s belong in Albuquerque, and remote workers get Taos and Santa Fe for the scenery or Las Cruces and Farmington for the price. Santa Fe and Los Alamos homes price like Denver, Roswell and Silver City price like 2015.
Figures marked with a dotted line update themselves from AAA, BLS, MERIC, Zillow, realtor.com via FRED and the Tax Foundation. Last checked October 21, 2026.
Locals who love New Mexico talk about the scenery, the friendliness of neighbors, and the freedom to camp and hike on open land that would be a state park anywhere else. Transplants from California and Texas say the cost of living and the people feel like a relief after crowded, expensive coasts. But others who grew up there or spent decades in the state describe leaving after years of frustration, citing bad governance, a weak education system, and crime that never seems to improve.
The warning that comes up again and again is healthcare. Locals say doctors left after policy and insurance changes made the state hard to practice in, leaving people waiting or driving elsewhere for basic treatment. Housing surprises newcomers too, with long waits in Santa Fe and cheap, plentiful options up in the San Juan area, a contrast most guides don’t mention.
“I love the friendliness of the people /neighbors , everyone has been so helpful in making my transition very easy and nice.”
AK Local · 43 years
“Doctors don't want to live there because New Mexico's insurance and tort laws are punitive to healthcare providers”
Mustard Jane Local · 8 years
“If you move up to the san juan area, housing is cheap and excessive”
Stay Ashy Reader
