Cost of Living in Albuquerque, NM

An Overview of Cost of Living in Albuquerque, NM

Understanding the cost of living in Albuquerque can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Albuquerque cost of living index is 100, which is 0% equal to the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in Albuquerque is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

What Do Locals Say About the Cost of Living in Albuquerque?

The real experts on a city are its residents. That's why we reached out to 39 locals to get their views on the cost of living in Albuquerque. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 44% found it budget-friendly with decreasing prices, while 56% said it's simply not affordable as prices have continued to rise.

Is Albuquerque Affordable?

Is Albuquerque an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Albuquerque is 10.5% higher than the national average, while the average monthly rent prices are 6.3% lower than average. The affordability of any location can also be influenced by median income levels. Albuquerque has a median household income of $53,936, which is 2.5% lower than the national average.

What Factors can Influence the Cost of Living in Albuquerque?

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Albuquerque, the standard sales tax rate starts at 5%, and the income tax rates commence at 1.7%.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Albuquerque, the transportation index is 7% lower than the national average.

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Albuquerque, the housing index is 5.5% higher than the national average.

Where is the Data From?

The Albuquerque cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.