What It Really Costs to Live in Albuquerque in 2026
By the Better with Baron Team, Keller Williams Realty | Updated November 4, 2026
The Albuquerque cost of living runs about 4.5% below the national average, according to the U.S. Bureau of Economic Analysis, and housing drives most of that gap. ABQ apartment rents sit about 12% under the U.S. median, and the typical detached home sells for roughly $30,510 less than the national median.
ABQ at a glance: The Greater Albuquerque median sales price for detached homes was $386,990 in September 2026, according to GAAR and Southwest MLS data.
Whether you're relocating from out of state or weighing a move across town, here's what the numbers look like line by line, with sources you can check. For more data posts like this one, browse our Albuquerque market updates.
Albuquerque Cost of Living at a Glance
Overall prices: 95.5 on the BEA's Regional Price Parity index, where 100 equals the U.S. average (2024 data, the latest available)
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Rent prices: 89.2 on the same index, or about 11% below average
Median detached home: $386,990 in ABQ vs. $417,500 nationally (September 2026)
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Median apartment rent: $1,214 a month vs. $1,384 nationally (October 2026)
Median 3-bedroom house rent: About $2,100 a month
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Sales tax: 7.625% gross receipts tax inside city limits
A regional price parity, or RPP, compares the cost of the same basket of goods and services across metro areas. It's one of the most reliable ways to compare places, because it comes from federal data rather than a single website's survey.
Housing: Where the Savings Show Up
Housing is the biggest line in the Albuquerque cost of living, and it's where Albuquerque stands out. The September 2026 national median existing-home price was $417,500, according to the National Association of REALTORS®. Greater Albuquerque's detached median was $386,990, about 7.3% lower. Compared with the West region median of $613,600, the gap is far wider.
Here's what that looks like monthly. With 10% down and a 7.24% rate, the 30-year average in Freddie Mac's October 29 survey, principal and interest come to about $2,374 on the ABQ median. On the national median, the same terms run about $2,561, roughly $187 more each month. Your rate will vary with credit, down payment, and loan type.
Condos and townhomes widen the gap further. The attached-home median in Albuquerque was $279,000 in September, more than $100,000 below detached homes. Our September 2026 market update breaks down inventory, days on market and price trends in more detail.
Renting in Albuquerque
What you'll pay to rent in ABQ depends a lot on whether you want an apartment or a house. Apartment List's October 2026 estimates put the citywide apartment median at $1,214 a month, $170 below the national median of $1,384. A one-bedroom apartment runs about $998, and a two-bedroom about $1,277.
Single-family homes are a different market. The median 3-bedroom house in Albuquerque rents for about $2,100 a month, according to Homes.com, and current listings range from roughly $1,700 to $4,000 depending on size, age, and neighborhood. Zumper reports 3-bedroom house rents are up about 5% from a year ago, even as apartment rents slipped 0.34%.
Apartments: Down 0.34% year over year (Apartment List)
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Three-bedroom houses: Up about 5% year over year (Zumper)
If you need three bedrooms and a yard, budget closer to the house numbers. A house rent in the $2,100 to $2,800 range lands near the principal and interest on the ABQ median home, about $2,374 before taxes and insurance, so it's worth running both numbers before you sign a lease.
Property Taxes
Property taxes are another manageable piece of the Albuquerque cost of living. New Mexico taxes homes on one-third of their assessed value, which keeps bills moderate. Inside Albuquerque city limits, the 2026 certified residential rate is up to 48.313 mills. A home assessed at the $386,990 median, with the $2,000 head of family exemption, would owe about $6,136 a year, or about $511 a month in escrow.
Rates are lower in parts of the county, and assessed value resets to market value when a home sells. Our Bernalillo County property tax guide walks through how bills are figured out and which exemptions to file.
Utilities in the High Desert
PNM is the main electric provider in Albuquerque. Under its residential rate effective April 1, 2026, 1,000 kilowatt-hours costs about $132 in a non-summer month and about $145 in summer, before the fuel adjustment and taxes. Water and sewer rates are set by the Albuquerque Bernalillo County Water Utility Authority.
Many ABQ homes cool with evaporative coolers, often called swamp coolers, which typically use less electricity than refrigerated air in our dry climate. If you buy a home with one, our Albuquerque home maintenance checklist covers seasonal cooler care.
Taxes Beyond Your House
Gross receipts tax: New Mexico uses a gross receipts tax instead of a traditional sales tax. The combined rate inside Albuquerque city limits is 7.625%, and rates vary slightly by location.
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Groceries: Food bought for home consumption is generally exempt from gross receipts tax.
State income tax: Rates run from 1.5% to 5.9% across six brackets.
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Social Security: Exempt from state income tax for single filers under $100,000 and joint filers under $150,000.
What This Means If You're Moving Here
The Albuquerque cost of living gives newcomers room to breathe, especially on housing. Lower rents and home prices than the national median can mean a larger home, a shorter path to buying, or more left over each month. The trade-off is that wages here also tend to run below national levels, so compare your own income and expenses, not just prices.
For the lifestyle side of the move, from weather to commutes to what locals love, read what locals say about living in Albuquerque.
Frequently Asked Questions
Is Albuquerque cheaper than the national average?
Yes. The Albuquerque cost of living is about 4.5% below the U.S. average on the BEA's Regional Price Parity index, with rents about 11% below average.
What is the average rent in Albuquerque?
It depends on the type of home. Apartment List's October 2026 estimate is $1,214 a month for apartments overall, $998 for a one-bedroom and $1,277 for a two-bedroom. Three-bedroom houses rent for a median of about $2,100, with larger or newer homes often running $2,500 to $4,000.
How much is a house in Albuquerque?
The Greater Albuquerque median sales price for detached homes was $386,990 in September 2026, per GAAR. The attached-home median was $279,000.
Does New Mexico tax Social Security?
Not for most retirees. Social Security income is exempt from state income tax for single filers under $100,000 and joint filers under $150,000.
Planning Your Move to ABQ?
Every budget is different, and the right neighborhood can shift these numbers a lot. If you'd like help comparing areas, payments, or timing, the Better with Baron team is always happy to talk it through.
Better with Baron | Keller Williams Realty | (505) 271-8200
Local market data courtesy of the Greater Albuquerque Association of REALTORS® and Southwest MLS, September 2026, deemed reliable but not guaranteed. Other figures from the U.S. Bureau of Economic Analysis, National Association of REALTORS®, Freddie Mac, Apartment List and PNM. Payment and tax examples are estimates for illustration only.
This article is general information, not tax, legal or financial advice.