Top 10 Affordable Cities in New Mexico

Moving to New Mexico?

New Mexico is full of rugged, desert charm and a friendly atmosphere. Whether you prefer hiking desert slopes or visiting craft boutique stores, you’ll find a little bit of everything in The Land of Enchantment.

Why it matters: Opting for a home within your budget can allow you to fully enjoy a rich New Mexico lifestyle.

What’s ahead: If you’re ready to move or retire to this great southwestern state, this list of affordable cities breaks down the stats.

1. Deming – Borderland calm with sky-high views

Pop: 15,272 | Median Home Value: $112,800 | Median Household Income: $35,920

• Cost of Living Index: 71.6 (28.4% below national average)

• Property Tax Rate: 0.70%

• Median Property Tax: $733

• Major Industries: Agriculture, manufacturing, healthcare, education, tourism

• Mean Commute Time: 16 min

• Amenities: Close to US-Mexico border, Florida Mountains, City of Rocks State Park

Why it’s #1: With the lowest home prices and scenic wonders nearby, Deming is a peaceful, pocket-friendly place to settle.

2. Sunland Park – Border energy meets mountain backdrop

Pop: 18,185 | Median Home Value: $194,900 | Median Household Income: $52,147

• Cost of Living Index: 83.5 (16.5% below national average)

• Property Tax Rate: 1.33%

• Median Property Tax: $2,405

• Major Industries: Healthcare, logistics, agriculture, tourism, manufacturing, energy

• Mean Commute Time: 32 min

• Amenities: Racetrack and casino, border city, Mount Cristo Rey

Why it’s special: This growing city offers cross-border commerce, racetrack thrills, and low costs under big desert skies.

3. Las Vegas – Historic soul with small-town ease

Pop: 12,711 | Median Home Value: $143,900 | Median Household Income: $42,732

• Cost of Living Index: 78.5 (21.5% below national average)

• Property Tax Rate: 0.95%

• Median Property Tax: $1,269

• Major Industries: Healthcare, government, construction, manufacturing

• Mean Commute Time: 15 min

• Amenities: Gallinas River, parks, golf courses, Storrie Lake

The draw: Nestled near lakes and mountains, Las Vegas blends quiet living, outdoor perks, and an ultra-affordable lifestyle.

4. Lovington – Oil-rich roots with hometown pride

Pop: 11,693 | Median Home Value: $162,900 | Median Household Income: $67,284

• Cost of Living Index: 79.4 (20.6% below national average)

• Property Tax Rate: 0.97%

• Median Property Tax: $1,466

• Major Industries: Oil and gas, agriculture, mining, healthcare, construction

• Mean Commute Time: 32 min

• Amenities: Chaparral Park, Gila Cliff Dwellings National Monument, casino and racetrack

Why it’s great: With solid wages and a cost-conscious lifestyle, Lovington makes rural living feel rewarding.

5. Roswell – Alien lore meets affordable living

Pop: 47,176 | Median Home Value: $139,200 | Median Household Income: $50,294

• Cost of Living Index: 71.2 (28.8% below national average)

• Property Tax Rate: 0.93%

• Median Property Tax: $1,201

• Major Industries: Healthcare, tourism, manufacturing, retail

• Mean Commute Time: 18 min

• Amenities: International UFO Museum and Research Center, Spring River Zoo, parks

Why it’s noteworthy: Roswell’s cost of living is otherworldly, in the best way, paired with real jobs and quirky charm.

6. Alamogordo – High desert base with natural wonders

Pop: 31,667 | Median Home Value: $163,600 | Median Household Income: $52,515

• Cost of Living Index: 75.2 (24.8% below national average)

• Property Tax Rate: 0.86%

• Median Property Tax: $1,306

• Major Industries: Holloman AFB-military, healthcare, education, tourism

• Mean Commute Time: 18 min

• Amenities: Sacramento Mountains, Alameda Park Zoo, White Sands National Park, historic sites

The takeaway: With White Sands nearby and a strong military economy, Alamogordo balances adventure and affordability.

7. Gallup – Southwest spirit on full display

Pop: 20,339 | Median Home Value: $134,600 | Median Household Income: $57,466

• Cost of Living Index: 78.0 (22.0% below national average)

• Property Tax Rate: 1.2%

• Median Property Tax: $1,499

• Major Industries: Healthcare, entertainment, retail, education

• Mean Commute Time: 18 min

• Amenities: Red Rock Park, Amtrak, casino

Why it works: Gallup shines with cultural depth, scenic landscapes, and living costs that keep budgets in check.

8. Portales – College town with prairie calm

Pop: 11,789 | Median Home Value: $132,900 | Median Household Income: $51,290

• Cost of Living Index: 69.3 (30.7% below national average)

• Property Tax Rate: 0.73%

• Median Property Tax: $900

• Major Industries: Education, healthcare, retail

• Mean Commute Time: 15 min

• Amenities: Eastern New Mexico University, farmers market, parks, rodeo arena

The allure: With ultra-low costs and a university heartbeat, Portales is perfect for students, families, and first-time buyers.

9. Española – Artsy edge in a heritage-rich valley

Pop: 10,475 | Median Home Value: $205,100 | Median Household Income: $47,664

• Cost of Living Index: 82.4 (17.6% below national average)

• Property Tax Rate: 0.79%

• Median Property Tax: $1,504

• Major Industries: Healthcare, construction, oil and gas

• Mean Commute Time: 30 min

• Amenities: Northern suburb, rich arts scene, Northern Rio Grande National Heritage Area

Why it’s a contender: Española offers access to Santa Fe flair without Santa Fe prices.

10. Clovis – Military roots with small-city rhythm

Pop: 14,832 | Median Home Value: $160,000 | Median Household Income: $54,029

• Cost of Living Index: 74.7 (25.3% below national average)

• Property Tax Rate: 0.86%

• Median Property Tax: $1,262

• Major Industries: Canon AFB-military, agriculture, railroad

• Mean Commute Time: 16 min

• Amenities: Larger NM city, Hillcrest Park Zoo, museums, parks

Why it shines: Clovis blends a stable job base with family-friendly amenities and a cost of living that’s easy on your wallet.

The Bottom Line

New Mexico’s affordable cities offer more than low prices, they deliver desert beauty, cultural richness, and a lifestyle that doesn’t break the bank. Whether you're chasing wide skies, short commutes, or unique history, the Land of Enchantment makes every dollar stretch.