Cost of Living in New Mexico – Average Expenses, Housing & More

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Understanding the cost of living in New Mexico can help you plan your budget and make informed financial decisions — whether you already live there, are thinking about moving, or are considering it as a place to retire.

The cost of living represents the amount of money you need each month to cover essentials such as housing, food, utilities and healthcare.

In New Mexico, average monthly expenses include $1,330 for groceries, $726 for utilities, $2,160 for housing, $420 for healthcare— adding up to $8,050 per month. That’s below the national average.

Knowing how these costs compare gives you a clear picture of day-to-day living expenses and helps you decide how far your income can go in New Mexico versus other parts of the country.

How New Mexico’s cost of living compares to the national average

The overall cost of living in New Mexico is 6% cheaper than the national average.

Several key spending categories — such as housing, utilities, groceries and healthcare — contribute to this difference. While housing costs often have the biggest impact, other expenses can make certain areas more or less affordable depending on local prices and lifestyle.

For example, homeowners in New Mexico spend about 12% below rates compared to the national average.

Average monthly living costs in New Mexico

Monthly living expenses in New Mexico vary depending on whether you own or rent a home and the size of your household. Homeowners often have higher monthly costs due to mortgage payments, property taxes, and insurance, while renters typically spend less — though exact costs can vary widely by location.

Family size also makes a big difference. For couples with children aged 6–17, the average monthly cost of living is $8,405 for homeowners.

The table below shows how monthly costs in New Mexico differ for homeowners, renters, and families with children.

Category	Average monthly cost
Home Owner	$8,050
Renter	$4,546
Married Couple with Children Under 6	$7,312
Married Couple with Children 6-17	$8,405

Cost of living breakdown in New Mexico by category

Living in New Mexico involves a range of expenses that vary based on your lifestyle, household size, and location within the state. Housing — including rent or mortgage payments— averages $2,160 per month, while groceries typically cost $1,330.

Utilities cost $726 per month, and healthcare costs an average of $420 per month.

Below is a breakdown of common living costs in New Mexico to help you understand how much you might spend in each category.

Housing costs in New Mexico

Housing in New Mexico is $2,160, 12% below the national average. For families, housing expenses can climb further. Married couples with children ages 6–17 spend around $8,405 per.

Housing tends to be one of the most significant factors influencing the overall cost of living in New Mexico.

Grocery costs in New Mexico

Grocery costs $1,330 in New Mexico, the rates are 3% below the national average.

Utility costs in New Mexico

The utility cost in New Mexico is $726 per month– that’s 16% below the national average.

Healthcare costs in New Mexico

Healthcare in New Mexico costs $420 a month, it’s 4% above the national average.

Thinking about moving to New Mexico?

Relocating isn’t just about picking a new city — it’s about adjusting to a different cost of living. Everyday expenses, such as housing, groceries, transportation and healthcare, can vary dramatically from one state to another.

That’s where our Cost of Living Calculator comes in. Enter your ZIP code to see how much it would cost to maintain your current lifestyle in New Mexico.

Keep in mind that the cost of living extends beyond rent and groceries. Insurance also plays a major role in your monthly budget. From home insurance that protects your property to auto insurance that keeps you covered on the road, rates can change significantly based on where you live.

Our COLI calculator can also provide home and auto insurance estimates tailored to your ZIP code, helping you plan more accurately before making the move.

Moving From

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Moving To

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Current income after-tax

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$32,000

Cost of living in Boise City, ID, after-tax

Cost of Living

36% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Auto Insurance

46% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Home Insurance

33% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Compare cost of living: Boise City, ID, vs New York (Brooklyn) City, NY

Cost in
Boise City, ID

------- vs -------

Cost in
New York (Brooklyn) City, NY

Housing

-63%

Groceries

-10%

Utilities

-35%

Transportation

-3%

Healthcare

-20%

Misc. Goods & Services

-4%

Auto Insurance

-46%

Home Insurance

-33%

Auto Insurance

New York (Brooklyn) City, NY: $2,453
Boise City, ID: $1,321
% Change: 46% lower

Home Insurance

New York (Brooklyn) City, NY: $2,694
Boise City, ID:
$1,809
% Change: 33% lower

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L O A D I N G

How to use cost of living comparison calculator

To use the tool, enter the Zip code to get the most accurate result. Cities can have multiple Zip codes, so by entering the city name, you'll get the average for all Zip codes in that city. We may not have cost-of-living data for some non-metropolitan areas. In those cases, we provide the cost-of-living information for the nearest Zip code with available information.

The cost of living index lets you compare one area’s costs with another.
Enter where you live and the information about another community. Provide your income and calculate the cost of living.
Our tool shows what you’ll need to earn to maintain the same standard of living. The tool also highlights the cost differences for each category: housing, groceries, utilities, transportation, health care, auto insurance, and home insurance.
The cost of living tool additionally includes how much you’d save on home and auto insurance.
Enter your information below and compare the cost of living between two places.

Final thoughts

Managing day-to-day expenses in New Mexico comes down to balancing the essentials — housing, groceries, healthcare, transportation, and utilities — that make up most of your monthly budget. How much you spend ultimately depends on whether you rent or own your home and the size of your household.

A practical way to manage the cost of living in New Mexico is to focus on the categories that have the biggest impact on your wallet. Since housing often takes up the largest share, choosing a more affordable neighborhood or renting before buying can help reduce financial strain. Small adjustments — like meal planning to cut grocery costs, shopping around for insurance, or making energy-efficient upgrades — can also make a meaningful difference over time.

Frequently asked questions on the cost of living in New Mexico

How can I beat the high cost of living in New Mexico?

A high cost of living in New Mexico can stretch any budget, but a few smart strategies can help make it easier to manage. Housing tends to take the biggest share of expenses, so looking beyond high-cost metro areas can free up more of your income.

Other essentials like groceries, utilities, and transportation also offer room for savings. Simple changes — such as buying in bulk, cooking at home, or comparing insurance rates — can add up over time.

It also helps to track your spending regularly. Once you see where most of your money goes, it’s easier to make small adjustments that reduce your monthly costs.

How does inflation impact the cost of living in New Mexico?

Inflation drives up the cost of living in New Mexico by gradually increasing prices for everyday essentials. As rent, groceries, and fuel become more expensive, even small price hikes across multiple categories can quickly strain a household budget.

Over time, that means your money doesn’t go as far — leaving less room for savings or discretionary spending. In short, inflation erodes purchasing power, requiring a higher income to maintain the same standard of living in New Mexico.

How much should I earn to live comfortably in New Mexico?

To live comfortably in New Mexico, your income should cover the essentials — housing, food, healthcare and utilities — while leaving room for savings, debt repayment, and discretionary spending.

A helpful way to structure your budget is by following the 50/30/20 rule:

50% of your income goes toward needs, such as rent, groceries, and bills
30% can be used for wants, like dining out, entertainment, or travel
20% should go toward savings or paying down debt to build long-term financial stability

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.

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On this page

How New Mexico's cost of living compares to the national average
Average monthly living costs in New Mexico
Cost of living breakdown in New Mexico by category
Thinking about moving to New Mexico?
Final thoughts
Frequently asked questions on the cost of living in New Mexico

Cost of Living in New Mexico in 2025

How New Mexico’s cost of living compares to the national average

Average monthly living costs in New Mexico