Best Affordable Places to Live in New Mexico in 2024

Best Places to Live in New Mexico

When looking for the best places in New Mexico to live, the good news is, you have a lot of great cities to choose from. From more metropolitan options to sleepier suburbs, let’s take a close look at the most affordable options in New Mexico and what cities are a good fit depending on what stage of life you’re in.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Best Affordable Places to Live in New Mexico

If you’re looking for somewhere warm and sunny to live without facing expensive coastal prices, New Mexico may have what you’re looking for. (Albuquerque, for example, averages 278 sunny days a year.) These are some of the most affordable places to live in New Mexico where you can enjoy the sun without the sticker shock.

1. Deming

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One of the more affordable places to live in New Mexico also happens to be a city that offers earning potential. The area’s largest employers are in agriculture and food processing as well as healthcare. Deming, an hour’s drive away from the larger city of Las Cruces, also offers easy access to three state parks for hikers, bikers, and bird-watchers.

Population: 14,930

Median Household Income: $30,491

Cost of Living: 86% of U.S. average

Median Rent Price: $1,125

Home Price-to-Income Ratio: 4.2

Average Property Tax: 0.6%

Housing Affordability: While Deming is on the more affordable side for New Mexico cities, this city has seen recent increases in rent prices, signaling this may be a good city to buy in, in case prices shoot up even more.

2. Portales

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If you like a small-town feel and are looking to save on rent, then Portales, home to Eastern New Mexico University, could be a good fit. Cannon Air Force base is nearby and the peanut and dairy industries also have a significant footprint in the local economy.

Population: 11,973

Median Household Income: $44,101

Cost of Living: 74% of U.S. average

Median Rent Price: $850

Home Price-to-Income Ratio: 3

Average Property Tax: 0.5%

Housing Affordability: Rent in Portales is cheaper than in major New Mexico cities like Albuquerque, where some buyers will require a jumbo mortgage loan in order to make their purchase. While Portales residents pay a median rent of $850, Albuquerque renters need to budget for $1,400 per month.

3. Roswell

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Roswell is best known for alleged UFO landings, so don’t be surprised if friends and family are eager to come to visit and check out the tourist hot spots if you move there. Roswell is the biggest city on our list of most affordable New Mexico cities, which may appeal to those who like a little more hustle and bustle.

Population: 47,390

Median Household Income: $46,034

Cost of Living: 88% of U.S. average

Median Rent Price: $1,250

Home Price-to-Income Ratio: 3.3

Average Property Tax: 0.65%

Housing Affordability: The good news for Roswell residents or future transplants is that housing costs and average rent prices have declined in the last year. The average home value is $151,777.

4. Clovis

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If you have your heart set on buying a newer home, then you’ll be happy to hear that between 2010 and 2019, more than 1,500 new homes were built in Clovis. The Cannon Air Force base is right outside of town, and the area is known for its rodeo events and music festival. Locals and visitors enjoy the town’s zoo and 17 parks.

Population: 37,902

Median Household Income: $50,109

Cost of Living: 82% of U.S. average

Median Rent Price: $1,100

Home Price-to-Income Ratio: 3.2

Average Property Tax: 0.53%

Housing Affordability: The real estate temperature in Clovis is warm right now, but you don’t need to stress about encountering too competitive of a market. That being said, to compete more effectively in the market when home-shopping, think about going through the mortgage preapproval process before your search heats up.

5. Grants

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Located on Route 66 and featuring an active downtown commercial area, Grants is a welcoming community that is a good fit no matter what stage of life you’re in. El Malpais National monument is just outside town and Albuquerque is about an hour away.

Population: 9,071

Median Household Income: $44,782

Cost of Living: 83% of U.S. average

Median Rent Price: $695

Home Price-to-Income Ratio: 3.5

Average Property Tax: 0.72%

Housing Affordability: The housing market is cool in Grants, so you may be able to find a deal if the right property comes on the market. Patience is key in Grants though — there are currently only four rentals available.

Best Places to Live in New Mexico for Families

If you have a couple of little ones or are planning on expanding your family, then you’re likely curious about what places in New Mexico families might like. Let’s take a closer look at some family-friendly cities.

1. Santa Fe

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With almost 21,000 family households, Santa Fe knows how to attract happy families looking to raise their children in a great place. Kids will enjoy the reptile museum, skate school, and children’s museum, among other local attractions. Their parents will appreciate the sunny climate and great local cuisine and the benefits of living in a small but still sizable city (think: job opportunities and a manageable commute).

Population: 89,008

Median Household Income: $61,990

Cost of Living: 108% of U.S. average

Median Rent Price: $2,700

Home Price-to-Income Ratio: 4.09

Average Property Tax: 0.64%

Housing Affordability: Rents in Santa Fe are high compared to other towns on our list, and the average home value weighs in at over $570,000. The home price-to-income ratio is reasonable, however, and as with any city, some neighborhoods are more affordable than others. Most buyers use a mortgage to purchases a home. Visit a home loan help center to learn more about the process.

2. Los Alamos

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Located on a mountain plateau not far from Santa Fe and Taos and many parks and protected lands, Los Alamos is home to the Los Alamos National Laboratory, which is also its main employer. Families might appreciate that, per capita, the population has exceptionally high levels of education, and the school district here is among the best-ranked in the state.

Population: 13,179

Median Household Income: $118,293

Cost of Living: 98% of U.S. average

Median Rent Price: $2,600

Home Price-to-Income Ratio: 4.3

Average Property Tax: 0.67%

Housing Affordability: Rents, though higher than in many other New Mexico towns, have seen price decreases of late, although typical home values, already over a half-million dollars, are rising. The market can be competitive, so understand mortgage prequalification vs. preapproval and the right time in your search to explore these steps.

3. Rio Rancho

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Families who want to ensure their children receive a strong public school education will appreciate how many highly ranked public schools call Rio Rancho home. When the kids aren’t hard at work, they can enjoy a lot of family fun in this community. From outdoor parks to indoor trampoline centers that help beat the summer heat, there’s no shortage of good times to be found in Rio Rancho.

Population: 108,082

Median Household Income: $70,615

Cost of Living: 84% of U.S. average

Median Rent Price: $2,250

Home Price-to-Income Ratio: 4.7

Average Property Tax: 0.87%

Housing Affordability: Rio Rancho may only be a quick drive from Albuquerque, but rents are somewhat higher here. The good news is that there are a lot of available rentals in Rio Rancho. For parents looking to settle down, homeownership is likely in sight. The average home value is $329,000, higher than some other New Mexico locations but lower than the national average. The market in Rio Rancho moves briskly, but there are many properties for sale.

4. Albuquerque

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There are 63,480 households in Albuquerque with children living in them, so families might enjoy lots of opportunities to build their village.

Population: 561,008

Median Household Income: $56,366

Cost of Living: 95% of U.S. average

Median Rent Price: $1,400

Home Price-to-Income Ratio: 4.12

Average Property Tax: 1.18%

Housing Affordability: Take advantage of Albuquerque’s cool housing market and $129 year-over-year average drop on monthly rental prices to find affordable housing for the whole family.

5. Roswell

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If you’re looking for a kid-friendly city to raise your kids in, Roswell has a lot to offer. From the Chattahoochee River to the many UFO museums and attractions to zoos and cinemas, there is no shortage of family-friendly fun waiting for you in Roswell.

Population: 47,390

Median Household Income: $46,034

Cost of Living: 88% of U.S. average

Median Rent Price: $1,250

Home Price-to-Income Ratio: 3.3

Average Property Tax: 0.65%

Housing Affordability: Rent prices have dropped in Roswell on a year-over-year basis, which can help out families on a tight budget. The average Roswell home value sits around $143,000, less than half of the U.S. average.

Recommended: Tips to Qualify for a Mortgage

Best Places to Live in New Mexico for Young Adults

To help recent grads and new professionals make the most out of their careers and their downtime, let’s examine some of the best places to live in New Mexico for young adults.

1. Albuquerque

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Young adults often like to skip the sleepy suburbs in favor of a bit more hustle and bustle. With over half a million residents in Albuquerque, the largest city in New Mexico, young adults have a lot of opportunities to meet friends, date, and expand their professional network.

Population: 561,008

Median Household Income: $56,366

Cost of Living: 95% of U.S. average

Median Rent Price: $1,550

Home Price-to-Income Ratio: 4.12

Average Property Tax: 1.18%

Housing Affordability: Young adults on a budget will appreciate the housing market in Albuquerque. With 900 rentals available and a year-over-year drop of $174 in monthly rental prices, they should have lots of options. The average home value here, like the overall cost of living, hovers below the national average at around $322,000. If you’re thinking of purchasing a home, it would be wise to explore first-time homebuyer programs in New Mexico.

2. Los Alamos

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When first starting out, young adults tend to earn lower salaries, but it can be a smart move to settle in an area with a high earning potential. Home to the University of New Mexico and Los Alamos National Laboratory, Los Alamos offers ample opportunities for growth. It’s also not far from Santa Fe and other larger cities that may offer job options.

Population: 13,179

Median Household Income: $118,293

Cost of Living: 98% of U.S. average

Median Rent Price: $2,600

Home Price-to-Income Ratio: 4.3

Average Property Tax: 0.67%

Housing Affordability: Los Alamos median rent has come down a bit recently but it’s not the bargain you’ll find in Albuquerque. Homes for sale here typically start at the half-million dollar mark; look in the neighboring community of White Rock for maximum options.

3. Santa Fe

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No matter what type of career path a young adult wants to forge in Santa Fe, they have options. The capital of the state offers many government jobs, as well as employment in healthcare, casinos, and banks. Los Alamos National Laboratory, with a staff of 14,000, is less than an hour’s drive away.

Population: 89,008

Median Household Income: $61,990

Cost of Living: 108% of U.S. average

Median Rent Price: $2,700

Home Price-to-Income Ratio: 4.09

Average Property Tax: 0.64%

Housing Affordability: Santa Fe’s rental market is currently cool although the median rent is on the higher side. As noted above, the average home value weighs in at over $570,000. The home price-to-income ratio is manageable, however, and as with any city, some neighborhoods are more affordable than others.

4. Las Cruces

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Young adults looking to have a little fun outside of work hours may get a kick out of the Las Cruces weekend and nighttime scenes. They can take their pick of breweries, bars, and restaurants at night, plus museums, hiking trails, and a packed calendar of local events during the day.

Population: 113,888

Median Household Income: $47,722

Cost of Living: 92% of U.S. average

Median Rent Price: $1,650

Home Price-to-Income Ratio: 5.9

Average Property Tax: 0.76%

Housing Affordability: While Las Cruces has seen a year-over-year average change of $50 in rental prices, the market is still cool so there shouldn’t be too much competition. Locals can also expect to spend less compared to other cities like Santa Fe.

5. Roswell

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Roswell can be a great place to make new friends and enjoy single life before settling down to start a family — not to mention there are almost 15,000 job opportunities available, so finding that great first job should be doable.

Population: 47,390

Median Household Income: $46,034

Cost of Living: 88% of U.S. average

Median Rent Price: $1,250

Home Price-to-Income Ratio: 3.3

Average Property Tax: 0.65%

Housing Affordability: Rent prices have been dropping ($400 year-over-year change) in Roswell, which is likely welcome news to any young adults budgeting an entry-level salary.

Recommended: First-Time Homebuyer Guide

Best Places to Live in New Mexico for Retirees

Settling down somewhere warm and sunny for retirement doesn’t sound too bad does it? Here are some of the best places to live in New Mexico for retirees.

1. Los Alamos

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Looking to make new friends in retirement? Seventeen percent of residents in Los Alamos are over the age of 65. It’s easy to meet new people in Los Alamos thanks to the wide range of attractions like museums, parks, and senior centers.

Population: 13,179

Median Household Income: $118,293

Cost of Living: 98% of U.S. average

Median Rent Price: $2,600

Home Price-to-Income Ratio: 4.3

Average Property Tax: 0.67%

Housing Affordability: The rental market in Los Alamos is cool right now, so retirees looking to downsize and switch to a rental don’t have to stress about competing too much with other renters for the best homes and apartments.

2. Santa Fe

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Looking to get out of the house and socialize? There are three well reviewed senior centers in Santa Fe that help keep seniors active. If a resident is ready to make the move to assisted living, there are also many of those communities to choose from.

Population: 89,008

Median Household Income: $61,990

Cost of Living: 108% of U.S. average

Median Rent Price: $2,700

Home Price-to-Income Ratio: 4.09

Average Property Tax: 0.64%

Housing Affordability: While Santa Fe rentals are an average of $2,725 per month, there are condos to be found in the $275,000-$450,000 range. With a down payment of even 10% you could enjoy monthly payments that are less than the cost of a rental. Explore the different types of mortgage loans to see how your payments would be affected by your loan type.

3. Taos

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If you’re looking for a quieter retirement, you may find the charming town of Taos appealing. More than a third of Taos residents are ages 65 or older, and Taos is home to Valverde Commons, a senior co-housing community, as well as a lively arts scene and lots of great dining options.

Population: 6,442

Median Household Income: $37,083

Cost of Living: 98% of U.S. average

Median Rent Price: $1,900

Home Price-to-Income Ratio: 12.4

Average Property Tax: 0.45%

Housing Affordability: With a $600 year-over-year drop in rental costs, retirees in Tao can stretch their retirement income farther than they could in other New Mexico cities. Home values are significantly above the national average at more than $450,000. The high price-to-income ratio reflects the fact that more than a quarter of the county’s residents are seniors, many of whom have limited incomes.

4. Ruidoso

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A low average property tax of $692 can help retirees living in Ruidoso make the most out of their retirement income. A plethora of wineries and waterfront activities is likely to ensure kids and grandkids will keep coming back for fun visits.

Population: 7,796

Median Household Income: $45,414

Cost of Living: 86% of U.S. average

Median Rent Price: $1,595

Home Price-to-Income Ratio: 6.7

Average Property Tax: 0.65%

Housing Affordability: Despite being a hot rental market with more renter demand than the national average, Ruidoso retirees are enjoying lower rental costs than last year. The average home value is around $315,000 and many available properties make the most of the area’s natural beauty and Sierra Blanca mountain views.

5. Rio Rancho

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Rio Rancho offers a range of retiree amenities through its senior centers and services. The Meadowlark Senior Center provides recreational, social, and educational classes and programs, while the Broadmoor Senior Center serves as an additional hub for lifelong learning, offering health, fitness, and nutrition classes, as well as cultural and technology activities. Rio Rancho’s Senior Services Advisory Board plays a pivotal role in shaping and enhancing these offerings, ultimately enriching the retirement experience there.

Population: 108,082

Median Household Income: $70,615

Cost of Living: 84% of U.S. average

Median Rent Price: $2,250

Home Price-to-Income Ratio: 4.7

Average Property Tax: 0.87%

Housing Affordability: Rental prices start at around $1,000 a month in Rio Rancho, but can go as high as $4,000. As noted above, home values are below the national average but still top $300,000.

💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.

Best Places to Live in New Mexico Near the Mountains

New Mexico boasts more than 2,900 named mountains, the highest being Wheeler Peak north of Santa Fe. So it should be easy to find a mountain town where you can settle down.

1. Taos

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Taos residents of any age enjoy the scenery here. Taos lies in the southern Rocky Mountains and is near the Sangre de Cristo range. Williams Lake is a picturesque mountain lake that combines the best of both worlds, mountains and water.

Population: 6,442

Median Household Income: $37,083

Cost of Living: 98% of U.S. average

Median Rent Price: $1,750

Home Price-to-Income Ratio: 12.4

Average Property Tax: 0.45%

Housing Affordability: Saving on rent is a big part of the Taos appeal. Taos renters can expect to spend $1,350 less than they would if they lived in Los Alamos. Home values are above the national average here, however.

2. Santa Fe

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Those who want to be close to the mountains, but who also want access to big-city amenities and a busy job market will find that Santa Fe checks all of their boxes (and has a relatively low cost of living). As a major bonus to foodies, Santa Fe also has a bustling food scene.

Population: 89,008

Median Household Income: $61,990

Cost of Living: 108% of U.S. average

Median Rent Price: $2,724

Home Price-to-Income Ratio: 4.09

Average Property Tax: 0.64%

Housing Affordability: While Santa Fe rent is on the higher side, it’s still cheaper than pricier New Mexico cities like Los Alamos.

3. Aztec

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Aztec is near the Angel Peak Scenic Area and offers more than 30 miles of mountain biking trails, not to mention hiking, bird-watching, and lake access. You can explore the history of the Puebloan ruins or visit the Aztec Speedway for an adrenaline-pumping show.

Population: 6,126

Median Household Income: $46,509

Cost of Living: 88% of U.S. average

Median Rent Price: $900

Home Price-to-Income Ratio: 4.8

Average Property Tax: 0.73%

Housing Affordability: Even in light of a hot rental market, Aztec rental prices have dropped slightly. Home values hover around $223,000, well below national averages.

4. Ruidoso

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Between lakes and wineries, there’s no shortage of ways to enjoy the many recreational options that come with living in Ruidoso, located in the Sacramento Mountains at 6,900 feet elevation. Want every day to feel like a vacation? You’ll fit right into this small town.

Population: 7,796

Median Household Income: $45,414

Cost of Living: 86% of U.S. average

Median Rent Price: $1,300

Home Price-to-Income Ratio: 6.7

Average Property Tax: 0.65%

Housing Affordability: A move to Ruidoso can be a savvy financial one — locals spend less than half as much on rent as they would if they lived in Santa Fe.

5. Los Alamos

Photo credit: iStock/benedek

For that small town feel, with the potential to still forge a strong career path, check out Los Alamos, which lies at one end of the Jemez Mountains National Scenic byway. The area offers 150 miles of trails and even has a high-altitude golf course.

Population: 13,179

Median Household Income: $118,293

Cost of Living: 98% of U.S. average

Median Rent Price: $2,600

Home Price-to-Income Ratio: 4.3

Average Property Tax: 0.67%

Housing Affordability: A median high household income comes with higher rental costs, with an average of $3,100 per month.

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The Takeaway

When deciding to move to New Mexico, in addition to looking at what the state has to offer, it’s important that you narrow your focus to what the individual cities are like. There are so many different cities in New Mexico that can appeal to different buyers based on affordability or the lifestyle they promote.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help. SoFi Mortgages: simple, smart, and so affordable.

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FAQ

Where is the most affordable place to live in New Mexico?

With a median rent price of $650 and an average home value that’s about half of the national average, Grants is one of the most affordable spots to call home in New Mexico. It’s a little more than an hour’s drive from Albuquerque.

What is the nicest area to live in New Mexico?

There are plenty of nice places to live in New Mexico, but mountain towns like Taos and Aztec offer unparalleled views and access to the natural beauty of New Mexico.

Is it a good idea to move to New Mexico?

Whether or not it’s a good idea for you to move to New Mexico depends entirely on your unique preferences, budget, and lifestyle. Luckily, New Mexico is one of the more affordable states to live in on average and has a lot of natural beauty to offer residents.

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