Cost of Living in Santa Fe, NM

An Overview of Cost of Living in Santa Fe, NM

Understanding the cost of living in Santa Fe 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 Santa Fe cost of living index is 112, which is 12% higher than 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.

Housing costs significantly influence the Santa Fe cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 45.8%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

What Do Locals Say About the Cost of Living in Santa Fe?

The real experts on a city are its residents. That's why we reached out to 19 locals to get their views on the cost of living in Santa Fe. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 26% found it budget-friendly with decreasing prices, while 74% said it's simply not affordable as prices have continued to rise.

Is Santa Fe Affordable?

Wondering if Santa Fe is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Santa Fe, for example, the median home price is 57.4% higher than what folks pay nationally, and monthly rent is 18.5% higher than the usual rates. Plus, income levels matter too, with Santa Fe boasting a median household income of $57,274, which is 3.5% higher than the national average.

What Factors can Influence the Cost of Living in Santa Fe?

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Santa Fe, the baseline sales tax rate begins at 5%, and income tax rates start at 1.7%.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Santa Fe, the healthcare costs are 4.3% lower than the national average.

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Santa Fe, the groceries index is 2.6% lower than the national average.

Where is the Data From?

The cost of living in Santa Fe, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.