The True Cost of Living in Albuquerque: Is It Affordable in 2025?

When planning a move, one of the biggest questions is: Can I afford to live there? Albuquerque, New Mexico, has long been known for its blend of affordability, culture, and natural beauty—but how does it measure up in 2025?

Here’s a breakdown of the true cost of living in Albuquerque this year and whether it’s still one of the Southwest’s most affordable cities.

 Housing Costs in Albuquerque

Housing is usually the largest expense for most households. The good news? Albuquerque remains more affordable than many metro areas.

• Median Home Price (2025): Lower than the national average, though prices have risen slightly in recent years.

• Renting: One-bedroom apartments average less than in cities like Denver or Phoenix. Larger rentals in family-friendly neighborhoods remain competitively priced.

• Neighborhoods to Consider:

  • Affordable: Rio Rancho, Westside, Barelas

  • Mid-range: Uptown, North Valley

  • Higher-end: Nob Hill, North Albuquerque Acres, Sandia Heights

 Utilities & Essentials

Living in the desert means energy bills can spike in summer, but overall utilities remain reasonable compared to national averages.

• Electricity & Gas: Around average, with seasonal highs for A/C in July–August.

• Water & Trash: Handled by the City of Albuquerque.

• Internet: Widely available through providers like Xfinity and CenturyLink.

 Food & Groceries

Grocery prices in Albuquerque are fairly moderate. Locals often save money by shopping at:

• Farmers markets (fresh, local, often cheaper for produce)

• Chains like Smith’s, Albertsons, and Sprouts

• Warehouse options like Costco

Dining out is also affordable, especially at local restaurants, with New Mexican cuisine offering great value for unique flavors.

 Healthcare Costs

Healthcare expenses in Albuquerque tend to be slightly below the national average. Major hospitals include UNM Hospital, Presbyterian, and Lovelace, with a strong network of clinics across the metro.

 Transportation

Albuquerque is largely car-dependent, though walkable neighborhoods (like Nob Hill and Downtown) reduce transportation needs.

• Gas Prices: Generally below the national average.

• Public Transit: ABQ Ride buses cover much of the city, though most residents rely on personal vehicles.

• Insurance & Registration: Typically more affordable than many states.

 Lifestyle & Entertainment

Living in Albuquerque comes with built-in perks that don’t break the bank. Residents enjoy:

• Free or low-cost outdoor recreation (hiking, biking, ballooning)

• Cultural events like the Albuquerque International Balloon Fiesta

• Affordable museums, galleries, and live music venues

 So, Is Albuquerque Affordable in 2025?

Yes—Albuquerque continues to offer an affordable lifestyle, especially compared to larger metro areas in the Southwest. Housing, utilities, and everyday expenses are manageable, making it an attractive option for retirees, families, and remote workers alike.

Final Thoughts

If you’re weighing a move in 2025, Albuquerque remains one of the most budget-friendly cities in the region while still delivering on culture, community, and convenience.

Thinking about moving to Albuquerque? Let’s connect—I’ll help you find the right neighborhood and home that matches both your lifestyle and your budget.

FAQs About Albuquerque’s Cost of Living

Q: Is Albuquerque cheaper than Phoenix or Denver?
A: Yes, housing and daily expenses are generally lower, making Albuquerque a more affordable choice.

Q: What’s the average home price in Albuquerque in 2025?
A: Still below the national average, though trending upward as demand grows.

Q: Is Albuquerque affordable for retirees?
A: Absolutely—lower housing costs, healthcare, and plenty of recreation make it a retirement-friendly city.