State cost profile · 2024 BEA RPP
Cost of Living in New Mexico
Statewide Regional Price Parities for New Mexico from the Bureau of Economic Analysis, overall, goods, services, and rents vs the U.S. average of 100, across 4 metro areas.
- 92.2
- Statewide RPP
- #37
- of 51 states by cost
- 73.6
- Rents RPP
- 4
- Metro areas
New Mexico ranks #37 of 51 states by cost, and its statewide price index has fallen 2.9 points since 2008.
- falling since 2008
- rose +1.2 points in the 2023-2024 release
- similar cost to Tennessee
The verdict
New Mexico costs less than 73% of U.S. states, a statewide index of 92.2, 7.8% below the national average.
- Rents
- furthest category from 100, at 73.6
- Tennessee
- closest statewide cost peer, 0.3 points away
- Santa Fe
- highest-cost metro, 98.8
- Farmington
- lowest-cost metro, 87.7
A $100,000 national salary carries the purchasing power of about $108,446 when earned in New Mexico.
Metro areas in New Mexico, ranked by cost
| # | Metro area | Overall | Goods | Services | Rents |
|---|---|---|---|---|---|
| 1 | Santa Fe | 98.8 | 96.1 | 76.7 | 108.0 |
| 2 | Albuquerque | 95.5 | 96.1 | 77.9 | 89.2 |
| 3 | Las Cruces | 90.2 | 96.1 | 77.9 | 63.0 |
| 4 | Farmington | 87.7 | 96.1 | 77.9 | 56.6 |
The Rents RPP index measures housing costs relative to the national average (100). For the federal 40th-percentile Fair Market Rent by bedroom size and county, see the HUD Fair Market Rents dataset.
Reading the New Mexico Cost of Living Picture
New Mexico sits in an affordability lane closest to Tennessee, Wyoming, Ohio. A lower statewide index does not mean every place or budget category is cheap; it means this state belongs with those peers before a household narrows to a metro. Its category range is 22.5 points: large enough to separate housing-sensitive and service-heavy budgets, but not a single-component outlier.
New Mexico captures 4 metro areas in the BEA dataset, and the range across them is meaningful. Santa Fe, NM leads on cost at 98.8, while Farmington, NM sits at the opposite end at 87.7 - a gap of 11.1 index points inside a single state. For goods the state indexes at 96.1, for services 77.9, and for rents 73.6. Rents run 18.6 points below the statewide index here, so housing is what pulls the whole figure down — a household that already owns outright captures much less of that discount than a renter does.
Over time, New Mexico's statewide index has eased by 2.9 points, narrowing the premium versus lower-cost states. Practically, this means a $100,000 national salary delivers the purchasing power of about $108,446 of national buying power when earned inside New Mexico, and a household relocating here would need roughly $92,212 to reproduce a $100K lifestyle. With 4 reporting metros inside the state, treat this figure as the midpoint of a range rather than a quote for any one address.
New Mexico vs every U.S. state
Where this state sits in the national cost distribution
92 Bottom 27% higher than 27% of 51 US states
Each bar is a band; taller bars hold more US states. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source U.S. Bureau of Economic Analysis, Regional Price Parities · 2024
New Mexico RPP history, 2008–2024
The statewide index has fallen 2.9 points from 2008 to 2024. The line shows every retained BEA release against the national benchmark of 100; the table preserves the component detail.
| Year | Overall |
|---|---|
| 2008 | 95.1 |
| 2009 | 96.0 |
| 2010 | 94.5 |
| 2011 | 97.1 |
| 2012 | 96.5 |
| 2013 | 95.6 |
| 2014 | 95.5 |
| 2015 | 95.4 |
| 2016 | 94.5 |
| 2017 | 95.7 |
| 2018 | 91.7 |
| 2019 | 93.0 |
| 2020 | 91.8 |
| 2021 | 89.7 |
| 2022 | 90.9 |
| 2023 | 91.0 |
| 2024 | 92.2 |
Latest BEA release change
What changed from 2023 to 2024
New Mexico's overall RPP rose +1.2 points, from 91.0 in 2023 to 92.2 in 2024. The largest category move was rents, changing from 75.3 to 73.6. RPP is a relative price index, so this reports a change against the national benchmark rather than a household's dollar bill.
What this means in New Mexico
The statewide index is a starting point, cost varies metro to metro within New Mexico.
- Don't rely on the state figure alone: Santa Fe (98.8) and Farmington (87.7) sit 11 index points apart inside New Mexico. Check your specific metro.
- Rents index at 73.6 (26.4% below average) - the largest swing in the RPP. Review the housing line before any relocation decision. Highest rents
- Weighing New Mexico against another state? Convert your salary to local purchasing power first. Salary calculator
RPP is BEA's annual price-level benchmark (national average = 100) for the data year shown, pair it with local wages and current rents before deciding.
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Cost of living guides →, cheapest and most-expensive rankings, cost of living vs wages, and how BEA constructs RPP data.
States with Similar Cost of Living
These states have RPP indices closest to New Mexico, making them useful peers for relocation or budget comparison.
Nationwide states with similar overall cost or rent prices
Two BEA RPP-derived peer sets for New Mexico: nearest states by overall regional price parity and by rents RPP. These are labelled nationwide neighborhoods, distinct from the closest-RPP list above.
Similar overall RPP
Nearest states by overall regional price parity (92.2 here).
Similar rents RPP
Nearest states by rents regional price parity (73.6 here).
Source: Bureau of Economic Analysis, Regional Price Parities Index where national average = 100
Frequently Asked Questions
How much cheaper is living in New Mexico than the U.S. average?
New Mexico has a Regional Price Parity (RPP) index of 92.2, meaning it is 7.8% less expensive than the national average. Goods are indexed at 96.1, services at 77.9, and rents at 73.6.
What salary in New Mexico equals $100K nationally?
To maintain the same purchasing power as a $100,000 salary at the national average, you would need approximately $92,212 in New Mexico. Conversely, $100K earned in New Mexico has the purchasing power of $108,446 at the national average.
How much of New Mexico's affordability is rents?
Rents in New Mexico are indexed at 73.6, which is 26.4% below the national average. The state is relatively affordable for renters.
Which is the most expensive metro in New Mexico?
The most expensive metro area in New Mexico is Santa Fe, NM with an RPP of 98.8. The most affordable is Farmington, NM at 87.7. There are 4 metro areas in New Mexico with BEA price data.
Has New Mexico gotten more affordable over time?
From 2008 to 2024, New Mexico's overall cost index changed by -2.9 points (from 95.1 to 92.2). The cost of living has been declining.
Data sources
- BEA Regional Price Parities (RPP), the cost-of-living indices shown on this page
- U.S. Census Bureau, American Community Survey (ACS), gross-rent observations behind the rents component
- BLS Consumer Price Index (CPI), goods and services price relatives
- BLS Occupational Employment and Wage Statistics (OEWS), labor-driven services component
- HUD Fair Market Rents (FMR), 40th-percentile rent cross-reference
Every figure on PlainCost is rendered directly from BEA Regional Price Parity source data, no number is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, our changelog, or report a data error. Data current as of 2024. Rankings measure the published cost-of-living index only; we don't recommend where to live or rate any metro's quality of life.