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Average Cost of Living in New Mexico: An In-Depth Guide

New Mexico is famous for having one of the lowest costs of living out of all the US states. Even with this knowledge, potential home buyers should still take into consideration additional costs associated with homeownership like home insurance, utilities, property taxes, and more.
New Mexico is famous for having one of the lowest costs of living out of all the US states. Even with this knowledge, potential home buyers should still take into consideration additional costs associated with homeownership like home insurance, utilities, property taxes, and more.

New Mexico is a rare find. Its natural beauty and resources are plenty yet it remains relatively inexpensive to live in the state known as “The Land of Enchantment.” When considering the cost of living in a particular city, region, or state, you need to consider multiple factors to get a full picture.

Potential home buyers relocating to New Mexico will benefit from the help of a local real estate agent. An experienced Partner Agent will use his or her expertise to set realistic expectations for your home buying and cost-of-living budget and needs.

Typical Home Prices in New Mexico in 2019

New Mexico median home values currently sit at $195,700. Over the past year, values have increased by 7.2%. While this sharp increase has tapered off, values are forecasted to rise 3.0% into April 2020.

The average number of days New Mexico homes spend on the market is decreasing and has maintained this downward trend since 2011. However, in certain cities, like Santa Fe and Taos, homes sit well above the state’s home value. Los Alamos also offsets the median home values because of the concentration of scientists and science related industries concentrated there.

New Mexico remains one of the poorest states in the country but many transplants, retirees, and outdoor enthusiasts are uprooting to move to this diverse state. Home values in higher-end areas are then driven up, resulting in more competition and increasing sales prices in these select areas.

How Much Are New Mexico Property Taxes?

New Mexico has one of the lowest property tax rates in the country. They rank at 13th lowest overall with a median property tax of $1,232 — about $1,000 lower than the rest of the country, according to SmartAsset.

The property tax rate in New Mexico is based on which county you live in. The rate can vary drastically and could even mean the difference of a few thousand dollars. If you find a desirable area in New Mexico, calculate the property tax to better estimate how much you’ll be paying. Chances are, just a few counties over from your desired location the property tax rate is much lower.

Average Homeowners Insurance in New Mexico

Making the jump from renting to owning comes with frequently overlooked costs. Homeowners insurance isn’t something a renter has to often pay and is a great deal more than typical renter’s insurance.

To better estimate your future homeowners insurance costs, it’s wise to look at your intended area of purchase. For example, the average cost of homeowners insurance in Albuquerque is around $778, while a little east in St. Vrain it’s estimated at $2,520. Homeowners insurance can fluctuate based upon local weather patterns, flood zones, climate, etc.

Common Home Maintenance and Repair Costs in New Mexico

In New Mexico’s mountainous regions, homes are subject to extreme weather fluctuations, including heavy snow, hail, and wind. Common fixes are roof repairs, stone work, and repainting.

Handyman rates in Albuquerque are around $326 for a standard job. In Clovis, the rate drops to $249. The average cost of an asphalt and shingle roof in New Mexico is around $221 per 100 square feet. It’s wise to put a little money away each month for future home repairs once you purchase a house.

Other Costs of Living in New Mexico to Consider

Buyers should take extra care creating a comprehensive list of additional costs that come with homeownership and their intended location. Depending on the city, buyers may need to consider airport access, transportation costs besides daily livability, like dining, shopping, and entertainment.

Monthly bills can go way up if the city you live in is rural and remote. Groceries, gas, and personal transportation costs can add hundreds of dollars to your budget. Much of New Mexico is rural and residents pay a premium for solitude, in more ways than just real estate costs.

Find a Top New Mexico Real Estate Agent

No matter your familiarity with New Mexico, potential home buyers should use the help of a knowledgeable local real estate agent. Clever Partner Agents are top rated and have immense local knowledge.

Your Clever Partner Agent will help set realistic expectations and find you the home of your dreams based on your budget and needs. Contact Clever today for a straightforward, enjoyable home buying experience.

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Reuven Shechter

Reuven Shechter is the Outreach Coordinator at Clever Real Estate, the free online service that connects you with top real estate agents to help save on commission. He spreads the word about Clever, disseminating studies to journalists and developing relationships with media outlets. Reuven is passionate about investing in real estate and creating lasting success for families. His writing has been featured in Max Real Estate Exposure, Leverage Marketing, and more.

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