If you’re questioning where to find reasonably priced housing and living expenses, New Mexico may be your answer.
Known for its picturesque southwest deserts and mountains, New Mexico often comes in well below the national averages for housing, utilities, and overall cost of living.
This four-corner state is also recognized for its preservation and presentation of Native American and Southwestern history, culture, heritage, and cuisine.
Equally, New Mexico boasts a diverse economy, which includes a variety of industries and organizations throughout the state.
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10 Cheapest Places to Live in New Mexico
With abundant natural beauty and significant historic attractions, New Mexico is an excellent locale for those who prefer to spend some time exploring the outdoor world.
The cold months offer great opportunities for winter sports activities, including skiing, snowboarding, and snowmobiling.
The rest of the year offers a relatively enjoyable and temperate climate, especially in the higher elevations.
New Mexico is also an excellent choice for those looking for reasonable housing prices and living wages.
The overall cost of living in the state is 5% below the national average and housing prices are closer to 8% below the national average.
Let’s explore some of the cheapest options for living in New Mexico.
1. Silver City
Located in the Southwestern portion of the state, this picturesque small town is a popular destination for an interesting cross-section of residents.
Among retirees, Silver City is becoming a more popular destination.
With its laid-back charm and walkable streets, many residents find that life moves a bit slower and with less hustle and bustle than that of a big city.
Rental prices average around $750 per month and the median home price is around $315,000 in Silver City.
Copper mining is one of the larger industries and employment options for residents of Silver City.
The town also borders the Gila National Forest, which offers employment options as well as outdoor activities including hiking and camping, boating, fishing, and hunting.
2. Roswell
As one of the more infamous cities in the United States, this relatively peaceful desert town seems to have gained quite a reputation for welcoming visitors from all over.
As a result, Roswell has become a popular tourist destination for extra-terrestrial enthusiasts.
For a place to call home, Roswell is an excellent choice, with house and rental costs well below both the state and national averages.
Additionally, residents of Roswell can expect four distinct seasons, plenty of available outdoor activities, and a diverse population of residents in the town.
3. Truth or Consequences
Few cities will have such a unique name as Truth or Consequences, which may intrigue more than a few prospective renters or buyers.
The town has also been the subject of a few films, notably a big-budget release in 1997.
As for its unique name, the town went through a rebranding in the 1950s when the popular TV game show of the same name offered to film in any town that would change its name to Truth or Consequences.
The town’s unique history is just one of the reasons people choose to live here.
Housing and rental prices are relatively inexpensive and residents and visitors can enjoy hiking and camping around Elephant Butte Lake State Park.
Plus, there are several hot springs in the area, available for a relaxing soak.
As a matter of fact, before becoming Truth or Consequences, the town was called Hot Springs, NM.
4. Lovington
Located southeast of Roswell and practically on the border with Texas, the town of Lovington, pop. 11,500, is a medium-sized city with a very attractive cost of living index.
Buying a home can be especially reasonable with median prices around $140,000.
Compared to the national average, home costs in Lovington are nearly 60% less expensive!
As a result, most residents choose to buy over renting.
Crime is also especially low in Lovington, with the majority of crime centering around property theft.
Many residents will point to the close-knit nature of the community as a prime reason why crime is low.
5. Deming
For families searching for affordable housing in New Mexico, Deming can be a great choice.
Situated in the southwestern portion of the state, Deming is a smaller town, with a population of approximately 15,000.
Many residents express their love of Deming’s small-town feel and see it as a safe place to raise a family.
Housing and rental costs in Deming are very affordable, too, which further influences families to call this New Mexico town their home.
Local attractions include the City of Rocks State Park, Water Town Park, Fort Cummings, and the Deming Arts Center.
For those searching for more adult activities, there are a few local wineries in Deming that offer tastings and tours.
6. Clovis
If you’re looking for a cheap place to live in New Mexico with strong community ties, Clovis is a top choice.
Situated on the border with Texas, Clovis is home to approximately 38,000 residents.
The cost of living in Clovis is roughly 10% less than the national average and home prices average just under $150,000.
Local attractions in Clovis include Hillcrest Park, an escape room, an axe-throwing venue, and the Norman and Vi Petty Rock and Roll Museum.
7. Farmington
Nestled between the Navajo Nation Reservation and the San Juan National Forest, Farmington is another great place in New Mexico to raise a family.
Noted for its excellent public education, this community is also a bastion for historical and cultural information.
From the ancient and sacred Pueblo ruins to Broadway performances on a sandstone stage, Farmington has a little bit of everything.
Average housing costs are below the national average and the cost of living also clocks in at about 20% lower than the nation.
As far as employment, Farmington has a healthy mix of low-, medium-, and high-skill level jobs available.
Additionally, crime rates are low in Farmington, while public education is ranked high.
8. Las Cruces
The city of Las Cruces is located near the southern edge of the state and is on the border of the Chihuahuan Desert, and Mexico further to the south.
Over 100,000 residents live in and around Las Cruces.
Much of the city has a suburban feel and many residents own their own homes.
The cost of living here is more than 10% below the national average.
Many residents enjoy hiking and exploring the Mesilla Valley Bosque State Park and the famous White Sands National Park, which is just up the road.
Locals also frequent the Rio Grande River, which runs just outside the city.
Within the city, a litany of cultural, artistic, and historic monuments, museums, and attractions are available for tours or self-guided visits.
9. Grants
Founded by and named after three Grant brothers from Canada in the 1880s, the town was originally a railroad town for the expansion of the Atlantic and Pacific Railroad.
In modern times, Grants was well-known as a stop along the famed Route 66.
Although not as many travelers are heading to Grants as they used to, many residents appreciate the laid-back nature of the current city.
As a result, housing and rental prices in Grants are much lower than both state and national averages,
Residents often explore the outdoors in and around the city, with the Chuska Mountain range to the west and Mt. Taylor to the east.
To the north, Bluewater Lake State Park is another attraction for outdoor enthusiasts.
Residents can enjoy hiking, fishing, horseback riding, and other outdoor activities within the serene natural setting of this reservoir lake.
10. Alamogordo
With just over 30,000 residents, Alamogordo is one of the cheapest yet most desirable locations in the state, especially for retirees.
Alamogordo’s history and notoriety can be derived from ancient and more recent events.
Historically, humans have inhabited this area in the Tularosa Basin of the Chihuahuan Desert for at least 11,000 years.
In more recent history, Alamogordo can be connected to the Trinity test, which was the first explosion of a nuclear bomb.
Residents of Alamogordo will find living expenses to be, on average, 10% cheaper than the national median range.
Housing in Alamogordo is a whopping 55% cheaper than the national average.
Although many residents are homeowners, there is still a significant number of renters, too.
This is important since both renters and home buyers can find affordable homes or apartments in the city.
Additionally, overall crime is low, public education ranks high, and the city is incredibly diverse in its population and culture.
New Mexico Safety Overview
READ THE FULL REPORT: New Mexico Safety Review
Safety Index:
- OVERALL RISK: MEDIUM
- TRANSPORT & TAXIS RISK: LOW
- PICKPOCKETS RISK: MEDIUM
- NATURAL DISASTERS RISK: LOW
- MUGGING RISK: LOW
- TERRORISM RISK: LOW
- SCAMS RISK: LOW
- WOMEN TRAVELERS RISK: LOW
Frequently Asked Questions
How affordable of a state is New Mexico to live in?
New Mexico is a very affordable state to live in.
Across the board, the state of New Mexico consistently ranks below the national averages for housing, food, clothing, groceries, and utilities.
What kind of employment options are available in New Mexico?
The oil and natural gas industry is one of the biggest employers in the state.
Aerospace, agriculture, and outdoor interests are also important sources of revenue for the state.
How does New Mexico compare to the rest of the country in terms of total population?
Although New Mexico is the 5th largest state by size, there are only 2.1 million residents in the entire state.
As a result, New Mexico is ranked 36th in total population.
