Cost of Living in Albuquerque New Mexico

Curious about the various factors impacting the cost of living in Albuquerque, New Mexico? In this guide, we'll explore the average Albuquerque living expenses, from housing and utilities to groceries, transportation, and more. Whether you're a prospective homebuyer or already a resident, this article can help offer a comprehensive overview of living costs in Albuquerque.

Summary:

Cost of Living in Albuquerque, NM
Housing Costs in Albuquerque, NM
Other Living Expenses in Albuquerque, NM
- Grocery Shopping and Dining Out in Albuquerque
- Transportation Options and Fuel Costs in Albuquerque
- Healthcare and Insurance Costs in Albuquerque
- Utilities, Internet, and Phone Expenses in Albuquerque
- Tax Rates in the Albuquerque Area
- Recreation Costs in Albuquerque, New Mexico
Average Salary in Albuquerque, NM
Albuquerque Cost of Living Comparison
Average Cost of New Construction Homes in Albuquerque by Neighborhood
Cost of Living in Albuquerque, New Mexico, Conclusion

Cost of Living in Albuquerque, NM

The average cost of living in Albuquerque, New Mexico, is 6% lower than the national average and 1% lower than the rest of the state, according to September 2024 data from RentCafe®. These relatively affordable living costs add to Albuquerque’s appeal as an attractive place to settle down.

According to the MIT® Living Wage Calculator, as of February 2024, the living wage for a single adult with no children in Albuquerque is $20.02 per hour. For a household of two adults with no children, the living wage is $14.32 per person, and for two adults with two children, it's $24.91 hourly per adult. Factoring in childcare costs, MIT finds these expenses average $19,255 annually for those with two children.

Housing Costs in Albuquerque, NM

Housing expenses in Albuquerque are also notably reasonable, coming in at 13% lower than the national average, per Payscale® in October 2024. The housing market is somewhat competitive, with homes often selling in under a month of being on the market. The median sale price of a home in Albuquerque in November 2024 is $355K, reflecting an increase of 10.2% from last year, according to Redfin®.

For renters, the average apartment in Albuquerque averages 818 square feet and runs $1,340 per month, with variations based on location, size, and quality, per RentCafe in September 2024. Annual housing costs for Albuquerque, calculated by MIT for February 2024, are $9,987 for a single adult, $12,122 for two adults without children, and $14,740 for a household of two adults and two kids.

A row of new construction homes, reflecting the cost of living in Albuquerque, New Mexico

Other Living Expenses in Albuquerque, NM

Beyond housing, Albuquerque residents benefit from lower-than-average everyday expenses on groceries, transportation, and healthcare.

Grocery Shopping and Dining Out in Albuquerque

Stocking the pantry costs about 3% less than the national average, according to Payscale in October 2024, which also offers this snapshot of typical grocery prices in the area:

Loaf of bread: $3.86
A gallon of milk: $4.55
Carton of eggs: $3.38
Bananas: $0.70
Hamburger: $5.39

MIT February 2024 data indicates that annual food costs are around $4,079 for a single adult, $7,478 for two adults without kids, and $11,988 for a household of two adults and two children.

For dining out, as of November 2024, you can expect the cost to range from approximately $18 at an inexpensive restaurant to $84 for two people over a three-course meal at a mid-range restaurant, reports Numbeo®.

Transportation Options and Fuel Costs in Albuquerque

RentCafe finds transportation costs in Albuquerque are 8% lower than the national average and 6% lower than the state average as of September 2024. AAA® reports a gallon of regular unleaded gas is around $2.91 as of November 2024.

Overall, MIT estimates annual transportation expenses at $9,325 for a single adult, $10,791 for two adults with no children, and $15,641 for a household of two adults with two children.

Healthcare and Insurance Costs in Albuquerque

Healthcare costs in Albuquerque are 4% lower than the national average, based on Payscale's October 2024 data, offering these typical prices for healthcare expenses:

Doctor's appointment: $134.56
Dental visit: $110.65
Optometrist: $123.25
Prescription drug: $233.62
Veterinary appointment: $68.14

MIT's February 2024 data puts annual medical costs for Albuquerque residents at roughly $2,723 for a single adult, $5,650 for two adults without kids, and $7,660 for two adults with two children.

Utilities, Internet, and Phone Expenses in Albuquerque

The average cost of utilities in Albuquerque is 3% lower than the national average, with monthly expenses running about $187.79 for energy and $191.08 for a phone bill, per RentCafe’s September 2024 data. Annual internet and mobile costs amount to $1,900 for a single adult and $2,496 for larger households, according to February 2024 MIT data.

Tax Rates in the Albuquerque Area

The Tax Foundation reports that individual income tax rates in New Mexico range from 1.70% to 5.90% in 2024. MIT estimates that annual taxes for Albuquerque residents average $5,862 for a single adult, $7,237 for two adults without children, and $11,624 for a household of two adults with two children.

The minimum combined sales tax rate in Albuquerque for 2024 is currently 7.63%, which includes a 4.88% state sales tax and a 2.75% city sales tax rate, according to Avalara®.

People enjoy colorful hot air balloons at the Balloon Fiesta in Albuquerque, New Mexico

Recreation Costs in Albuquerque, New Mexico

If you’re curious about how much you pay to play in Albuquerque, below are a few of our favorite attractions and venues in the city. Check out these top spots and the cost for some fun activities around town:

Albuquerque International Balloon Fiesta: Watch the sky fill with colorful hot air balloons as you enjoy food vendors, live music, and local artisans. General admission tickets are $15 per person per session, while children 12 and under are free!
Sandia Peak Tramway: Experience stunning panoramic views of the city and the surrounding mountains aboard the Sandia Peak Tramway. The ride offers breathtaking scenery. Once at the top, you can enjoy hiking, dining, and photography. A round-trip tram ride costs $34 for adults (21-61 years), $24 for children, and is free for children under the age of two.
Old Town Albuquerque: Steeped in history, Old Town features charming adobe buildings, unique shops, and local art galleries. Don’t miss the San Felipe de Neri Church, built in 1793, which adds a touch of historical significance to this vibrant area. Explore Old Town Albuquerque for free.

For more great ideas of stuff to do around the city, check out our list of the best things to do in Albuquerque.

Average Salary in Albuquerque, NM

As of September 2024, the average salary in Albuquerque is $63,723 per year, according to ZipRecruiter®. Salaries typically range from $46,045 at the 25th percentile to $79,976 at the 75th percentile. Job salaries in food prep and serving tend to be on the low end of the salary spectrum at $30K a year, while management jobs offer salaries on the higher end of around $117K.

MIT estimates that the required annual income after taxes to cover the cost of living in Albuquerque, New Mexico, is $35,785 for a single adult, $52,330 for two adults with no kids, and $91,987 for a household of two adults with two children, as of February 2024.

Albuquerque Cost of Living Comparison

When comparing Albuquerque's cost of living to other major cities, it's clear that this New Mexico gem offers a more affordable lifestyle. Below, we evaluate how Albuquerque stacks up against Houston, Dallas, and Phoenix, highlighting differences in housing, transportation, utilities, and overall expenses. This information, sourced from the Forbes® cost of living calculator in October 2024, offers a closer look at why Albuquerque may be the budget-friendly choice you seek.

Albuquerque, NM vs. Houston, TX: In Albuquerque, transportation costs are 3% lower, while homes are 7% more expensive than in Houston. The overall cost of living is similar, with utilities being 4% cheaper.

Albuquerque, NM vs. Dallas, TX: The cost of living is 8% lower in Albuquerque overall compared to Dallas, with home prices being 12% cheaper and utilities 16% more affordable, while transportation costs remain about the same.

Albuquerque, NM vs. Phoenix, AZ: Albuquerque’s cost of living is 10% lower than in Phoenix, with transportation expenses 15% less, home prices 25% less, and utility costs down by 8%.

Interior kitchen of a new construction home, a factor in the cost of living in Albuquerque, NM

Average Cost of New Construction Homes in Albuquerque by Neighborhood

Let’s take a look at what you can expect to pay for new construction homes in some of the top areas in and around Albuquerque.

Rio Rancho

Rio Rancho is a fast-growing suburb northwest of Albuquerque, known for its affordable housing and friendly atmosphere. The area has excellent parks and recreational facilities, making it a popular choice for many. With proximity to Albuquerque and scenic views of the Sandia Mountains, Rio Rancho offers a suburban lifestyle with easy access to city amenities.

The cost to build a new home in Rio Rancho, according to NewHomeSource®, ranges from the low $300Ks to the mid $600Ks as of October 2024. Pulte® new construction homes in Rio Rancho, NM, start in the low $400Ks.

Downtown Albuquerque

Downtown Albuquerque is the city’s busy urban center, offering a blend of historic landmarks, modern apartments, and plenty of things to do and see since it’s home to many attractions, including museums, theaters, restaurants, and nightlife. With pedestrian-friendly streets and proximity to public transportation, Downtown Albuquerque is ideal for those who enjoy an active, city-oriented lifestyle in New Mexico.

There aren’t a lot of new builds in the city center; however, per NewHomeSource in October 2024, the cost to build a new home in the Albuquerque area ranges from the low $300Ks to the upper $900Ks. Our new construction homes in Albuquerque, NM, start in the mid $400Ks.

Uptown

Uptown Albuquerque is the city’s commercial and shopping district, known for its large malls, restaurants, and business centers. It’s a popular destination for both locals and visitors, featuring upscale shopping at ABQ Uptown and convenient access to major employers in the area. With a mix of retail, dining, and residential spaces, Uptown has it all for those who want to remain in the city proper.

According to NewHomeSource, the cost to build a new home in Albuquerque near the Uptown area ranges from the low $300Ks to the upper $900Ks as of October 2024. Our new construction homes in Albuquerque, NM, near Uptown start in the mid $800Ks.

North Valley

North Valley is a scenic neighborhood in Albuquerque, characterized by its rural feel and larger properties. Known for its agricultural roots, with many local farms, wineries, and equestrian facilities, North Valley offers residents a peaceful, nature-filled lifestyle. The area also gives you easy access to the Rio Grande and outdoor recreation, making it a favorite for those seeking a quiet home and proximity to the city.

As of October 2024, the cost to build a new home in the North Valley area ranges from the mid $300Ks to the low $700Ks, according to NewHomeSource. Our new construction homes in Estates at Academy near North Valley start in the mid $800Ks.

Sandia Heights

Sandia Heights is an upscale neighborhood at the base of the Sandia Mountains, known for its breathtaking mountain views and serene atmosphere. The area features spacious homes and access to outdoor activities like hiking and biking, appealing to nature lovers and outdoor enthusiasts. With its peaceful setting and proximity to the Sandia Peak Tramway, Sandia Heights offers a secluded lifestyle conveniently close to Albuquerque.

The cost to build a new home in the Sandia Heights area ranges from the high $600Ks to the high $900Ks, per NewHomeSource in October 2024. Our new construction homes in Estates at Academy near Sandia Heights start in the mid $800Ks.