Cost of Living in Albuquerque, NM [2025]

One of the greatest perks of living in Albuquerque is nearly the endless amount of sunshine you’ll enjoy year-round. On average, the city sees approximately 310 days of sunshine each year. Despite all of the sunny days, this Southwest city still provides four distinct seasons to its residents.

While renowned for its International Balloon Fiesta, Albuquerque offers far more than just the spectacle of picturesque hot air balloons drifting across the stunning desert landscape at sunrise. Both naturally beautiful and culturally rich, the Albuquerque metropolitan boasts both an artistic atmosphere and a favorable economy.

Whether you’re looking to move to Albuquerque to take advantage of the relatively low cost of living, the unbeatable weather, or a combination of both, you need an idea of what your costs will look like. This guide provides a breakdown of the cost of living in Albuquerque, helping you understand the expenses you'll likely encounter while living there.

Cost of Living in Albuquerque

What Is The Cost of Living in Albuquerque?

The cost of living in Albuquerque is 2% less than the average U.S. city, with residents spending around $4,423 a month to live there.

Best Places offers a cost of living in Albuquerque, NM that is broken down by category as follows:

Where is the Cost of Living Highest in Albuquerque, NM?

The cost of living is higher in areas with greater desirability and proximity to amenities, such as Nob Hill, known for its nightlife and proximity to the University of New Mexico. Additionally, the High Desert area, characterized by its upscale homes and proximity to open spaces, tends to have a higher cost of living.

Where is the Cost of Living Lowest in Albuquerque, NM?

Generally, more affordable areas in Albuquerque can be found further from the city center and major employment hubs, such as the South Valley, which offers a more laid-back atmosphere and generally lower housing costs, and areas like West Mesa and Southwest Albuquerque, which provide a more suburban feel and often have more affordable price points compared to other parts of the city.

How Much Is Rent in Albuquerque, NM?

In December, Albuquerque's median rent dipped slightly by 0.2%. However, over the past year, it has seen a modest 2.9% increase. As of January 2025, the average monthly rent in Albuquerque sits at $1,205. This breaks down to $991 for a one-bedroom and $1,268 for a two-bedroom unit.

Nationally, the median rent for a one-bedroom is $1,206, a two-bedroom is $1,358, and the overall average is $1,373. Compared to the national average, Albuquerque's rental market is more affordable, coming in at 12.2% lower.

How Much is a 1-Bedroom Apartment in Albuquerque, NM?

Based on data compiled in our rent report, the median cost of a one-bedroom apartment in Albuquerque as of January 2025 is $991.

How Much is a 2-Bedroom Apartment in Albuquerque, NM?

Based on data compiled in our rent report, the median cost of a two-bedroom apartment in Albuquerque as of January 2025 is $1,268.

How Much is Housing in Albuquerque, NM?

The Albuquerque housing market has experienced consistent and substantial growth, with the median home price currently at $308,100. This figure stands in stark contrast to the median price index in major cities like New York, which reaches a staggering $667,200.

This affordability is further emphasized when comparing Albuquerque to other large metropolitan areas. For instance, Phoenix boasts a median home price of $413,000, while Raleigh's median sits at $427,000. These figures highlight the relative affordability of the Albuquerque housing market within the context of the broader national landscape.

What Salary Do You Need to Live in Albuquerque, NM?

Our research indicates that Albuquerque residents typically spend around $4,423 per month, or approximately $53,076 annually, on living expenses. To determine a comfortable living budget, the 30% rule for rent is a helpful guideline. This rule suggests that rent should ideally not exceed 30% of your monthly income.

Given the median rent for a one-bedroom apartment in Albuquerque is currently $991, a monthly income of roughly $3,303 (or $39,636 annually) would align with this recommendation. This income level should provide sufficient funds to cover essential expenses, allow for some savings, and offer flexibility for entertainment and other discretionary spending.

How Much Are Utilities in Albuquerque?

Despite the nearly year-round sun, winters in Albuquerque are cold and snowy, albeit short. The coldest days of the year fall in December with an average overnight temperature of 29°, while summers are hot and dry. July is the hottest month with an average daytime high of 92°.

To combat the cold winters and hot summers, you'll need to account for higher utility costs. Albuquerque’s basic utilities include electricity, heating, cooling, water, and garbage, running $363.54 for a 915-sq. ft. apartment. That's much higher than the national average of $253.14.

Before making your move to Albuquerque, it’s a good idea to determine how much utilities will cost in an apartment so you can budget accordingly.

How Much is Transportation in Albuquerque, NM?

If you're a single adult without children, and you drive your own car, you'll spend about $9,325 for transportation in Albuquerque annually. However, a family of four with two working adults and two children will pay $15,641 for transportation annually.

Albuquerque’s main official public transportation operator is ABQ RIDE. Operating throughout the city, ABQ RIDE makes it easy and affordable to travel from one neighborhood to the next. The New Mexico Rail Runner Express is another public transportation option that services Albuquerque to Santa Fe, stopping throughout the metropolitan area of Albuquerque.

If you are able to live and work within the city, you may be able to rely on public transportation. But, for those who have unique schedules or a longer commute, the public transportation in Albuquerque may not be the most dependable. In these instances, you will most likely need to account for having a vehicle of your own.

How Much is Food in Albuquerque, NM?

To cover the costs of eating at home, MIT’s Living Wage Calculator estimates that if you're a single adult without children, you can expect to pay at least $4,079 on food per year. However, a family of four with two working adults and two children should expect to pay $11,988.

While Albuquerque offers countless must-eat dining options, it is best known for its unique local cuisine, blending Spanish and Native American flavors. Absolute must-haves while living in Albuquerque include chiles rellenos, huevos rancheros, carne adobada, tamales, and enchiladas. Dining out in Albuquerque presents a range of options for every budget. Casual eateries and fast-food joints typically offer meals between $10-$25 per person. While upscale dining experiences can easily exceed $50 per person, Albuquerque's diverse culinary scene boasts numerous affordable and delicious options.

According to our database, Grocery costs in Albuquerque are 2.67% higher than the average U.S. city. For example, one gallon of regular milk costs $4.69 in an Albuquerque grocery store, while the national average is $4.62. Factors like the specific grocery store, brand choices, and dietary restrictions can significantly impact your weekly bill. However, a family of four can typically expect to spend between $100-$250 per week on groceries.

How Much is Healthcare in Albuquerque, NM?

When planning your budget in Albuquerque, healthcare costs are a crucial consideration. According to MIT's Living Wage Calculator, a single adult without children can expect to spend approximately $2,723 on healthcare expenses annually. For a family of four (two working adults with two children), healthcare costs can rise significantly, with an estimated annual expenditure of $7,660.

These figures can vary depending on factors such as age, health conditions, insurance coverage, and the specific healthcare providers utilized. It's essential to research and compare health insurance plans available in Albuquerque, considering factors like deductibles, co-pays, and network coverage.

How Much are Utilities in Albuquerque, NM?

Albuquerque enjoys nearly year-round sunshine, but experiences distinct seasons. Winters, though short, can be cold with occasional snowfall, with December typically seeing the coldest temperatures, averaging around 29°F overnight. Conversely, summers are hot and dry, with July often reaching average daytime highs of 92°F.

These temperature extremes significantly impact utility costs. Heating and cooling expenses are notably higher than the national average. For an apartment, basic utilities (electricity, heating, cooling, water, and garbage) can average around $363.54 per month, compared to the national average of $253.14.

Before making your move to Albuquerque, it’s a good idea to determine how much utilities will cost in an apartment so you can budget accordingly.

How Much is Child Care in Albuquerque, NM?

Childcare costs in Albuquerque can significantly impact a family's budget. The cost of childcare varies depending on the type of care (daycare, in-home care, preschool), the age of the child, and the provider's qualifications and experience. Childcare estimates for a family with 2 working adults and 2 children could be as much as $19,255 a year, representing a considerable portion of income for many families.

Albuquerque Fitness and Entertainment

Albuquerque offers a diverse range of fitness and entertainment options. Numerous gyms, yoga studios, and fitness centers cater to various fitness levels and budgets, with an average monthly membership cost for one adult at around $32.50. When the weather permits, residents can enjoy the city's natural beauty with activities like hiking the La Luz Trails, exploring the ABQ BioPark Zoo, and relaxing at Tingley Beach.

For indoor entertainment, Albuquerque boasts a thriving arts scene with theaters, museums, and live music venues. The Indian Pueblo Cultural Center, the National Museum of Nuclear Science & History, and the Explora Science Center and Children's Museum offer engaging experiences for all ages and admission for under $20. Moviegoers can catch a film at a local cinema for approximately $15.00 (without concessions). Albuquerque's diverse culinary scene and numerous festivals and sporting events further enrich the city's vibrant entertainment landscape.

Other Expenses to Consider in Albuquerque, NM

New Mexico has a progressive income tax rate, ranging from 1.7% to 5.9%, which is generally considered competitive compared to many other states. The state also levies a gross receipts tax, similar to a sales tax, with a combined state and local rate of 7.62% in Albuquerque.

Beyond income and sales taxes, moving out of state to Albuquerque will likely involve various relocation costs. These can include moving company fees, temporary housing expenses, transportation costs, and storage fees. Settlement costs can include security deposits, application fees, pet deposits, utility connection fees, home internet setup fees, and the cost of purchasing essential household items.

Furthermore, furnishing your new apartment can be a significant expense. Consider exploring affordable options like secondhand stores, consignment shops, or furniture rental services to help furnish your home on a budget. Careful planning and budgeting are crucial to ensure a smooth and financially manageable transition to Albuquerque.

Albuquerque’s Job Market

The Albuquerque job market offers a diverse range of opportunities across sectors like healthcare, education, technology, and tourism. Major employers include the University of New Mexico, Sandia National Laboratories, and the state and federal government.

While Albuquerque offers a slightly lower cost of living compared to other U.S. cities, it's crucial to consider the overall economic landscape. The unemployment rate in Albuquerque is slightly lower than the national average of 4.2%, currently at 4.1%. However, according to the U.S. Census website, the median household income rate is also lower than the national average of $78,534, currently at $65,604 per year.

Looking for an Apartment in Albuquerque?

Finding an apartment in Albuquerque can be a rewarding experience, especially in a city boasting over 300 days of sunshine per year. Apartment List can make your search easier by helping you to refine your search by budget, desired amenities, and preferred neighborhood. You can easily compare rental prices, read reviews from other renters, and even schedule tours directly through our website. Start your apartment hunt today by taking the Apartment List quiz, and discover the many wonderful neighborhoods that Albuquerque has to offer.

FAQs: Cost of Living in Albuquerque

What salary do you need to live comfortably in Albuquerque?

The salary needed to live comfortably in Albuquerque varies significantly depending on individual circumstances and lifestyle choices. A single person may find a comfortable living standard with a salary between $40,000 and $60,000 per year, allowing for adequate savings and leisure activities. While the median household income in Albuquerque is $65,604, families typically require higher incomes, potentially exceeding $100,000 per year, to comfortably cover expenses such as childcare, education, and other family-related costs.

How expensive is it to live in Albuquerque?

Albuquerque offers a relatively affordable cost of living compared to many other major cities in the United States. Housing costs, while a significant factor, are generally lower than the national average. The average rent for a 1-bedroom apartment in Albuquerque is $991 per month. Residents typically spend around $4,423 per month, or approximately $53,076 annually, on living expenses. However, the cost of living can vary significantly depending on your lifestyle, location within the city, and family size.

What is the population of Albuquerque?

According to the U.S. Census Bureau, there are an estimated 560,274 people living in Albuquerque.

What do groceries cost in Albuquerque?

Grocery costs in Albuquerque are 2.67% higher than the average U.S. city. The average monthly grocery cost in Albuquerque is approximately $307.

Is it cheaper to live in Texas or New Mexico?

Generally, the cost of living in New Mexico, including Albuquerque, is lower than in many parts of Texas. According to the Best Places, New Mexico's cost of living is 21.1% cheaper than the U.S. average, while Texas's cost of living is 12.2% lower than the national average. This suggests that, on average, New Mexico offers a more affordable cost of living compared to Texas.