As housing prices in California increased by 21% in 2021—up $136,000 from last year—more Californians are searching for a new place to live.
Housing costs in California aren’t the only thing increasing. The Consumer Price Index, which is calculated by the Bureau of Labor Statistics, has reported a 0.5% increase in July, and an overall increase of 5.4% for the year. Food and groceries, utilities, and transportation have also seen a hike in price.
Cost of Living Comparison
According to BestPlaces, the cost of living comparison between New Mexico and California shows clear evidence that moving to New Mexico makes economic sense.
|Overall Index: Homeowner, No Child Care, Taxes Not Considered||52.6% less|
|Food & Groceries||9.5% less|
|Housing (Homeowner)||75.1% less|
|Median Home Cost||76.3% less|
How Much Does it Cost to Live in New Mexico?
A comfortable income is much lower here than in California. The average income needed to live comfortably in New Mexico is $42,445. If you are single, you may be able to live off even less.
The current average home price in New Mexico is about $253,438, according to Zillow. That’s less than half of the California home price average of $683,996. While home prices here have increased, it’s worth noting the average family can still get a great space for a lot less!
Finally, state and local taxes average just $2,707 annually with personal income taxes fluctuating between 1.7 to 4.9 percent, depending on a family’s combined income. What’s more, your property taxes will also be about one-third lower in the Land of Enchantment. The average property tax rate here is about 0.78%. One reason property taxes in New Mexico are so low? The taxable value of a property can only increase 3% in any given year.
Reasons to Move to New Mexico
Cost of living is just one reason that Californians are flocking to New Mexico. In addition to a rich cultural heritage, there’s also the incredible scenery, a job market that offers a wide range of positions, and more than enough historical places to visit.
There’s also more space. New Mexico’s largest cities are Albuquerque (around 900,000 residents) and Las Cruces (around 100,000). The state is the fifth-largest in the nation, so there’s room for newcomers to create their own space.
The population here is more spread out than in congested coastal cities. In terms of quality of life, that means less sitting in traffic, shorter commutes, and more opportunities to get away from it all.
We Can Help
Based in Las Cruces, New Mexico, Grind Real Estate has a variety of resources for those looking for a change of scenery in an affordable and beautiful place. We’ve helped many homebuyers negotiate competitive home prices and guide them through the process of homebuying. For more information, visit our blog, which has informative and detailed articles for those looking to transition to New Mexico.
Contact us today by calling 855-900-9400 or email us to start your journey to the Land of Enchantment.