Santa Fe, New Mexico holds its place in history as the oldest capital in the United States. This city, steeped in history, culture, and artistic flair, has drawn many people to its enclaves.

However, before you make the move to pitch your tent here, you might want to know a few things.

What does it cost to live in Santa Fe? 

Is it budget-friendly or a luxury destination?

Does it strike a balance between charm and cost? 

The cost of living in Santa Fe is about 4% higher than the national average. Hence, understanding how this applies to the specific financial landscape of the city is key to a comfortable life here. 

So, let’s cover the complete breakdown of all the basic expenses in Santa.

Housing Costs

Anywhere in the world, the big-ticket item is usually housing, and the same is applicable in Santa Fe. The city’s unique and historic homes come with a higher price tag than nearby cities.

Even though home prices have gone down by 1.2% since the start of the year, the median home price in Santa Fe, NM is still higher than the national average.

The homes here are somewhat competitive, meaning that bidding wars are often not stiff. However, living in Santa Fe can be a bit rough for renters.

If you’re looking to rent an apartment, you are in some tough market as the vacancy rate is less than 12%. 

Rent is more expensive in neighborhoods like San Mateo, Valle Del Sol, and Historic St Catherine’s, whereas La Madera, Casa Alegre, and Barrio La Canada offer more affordable options.

• Average House Rent: $1,847
• Median Home Value: $536,300

Utilities

One of the important areas to consider when it comes to living costs in Santa Fe is utility costs. Why? 

With more than 300 days of sunshine a year, heating costs are lower. But the city also experiences high summer temperatures, making air conditioning essential. 

Fortunately, utility costs in Santa Fe are significantly lower than the national average. The average monthly utility bills (electricity, heating, cooling, water, and garbage) hover around $130 to $360.

As for internet, expect to pay an average of $67. However, this cost varies, depending on your provider and speed.

So, is Santa Fe affordable when it comes to utility costs? 

Absolutely!

Food and Groceries

If there is one thing that has had many people calling up their movers for that ultimate decision to move to Santa Fe, it’s the diverse food options here.

But how much does this cost?

A meal at an inexpensive restaurant in Santa Fe will set you back about $18. If you move to a mid-range restaurant, you can pay anything between $60 and $120 for a three-course meal.

However, to save more with less eating out, you can buy your own food items. But how much does it cost to keep your pantry stocked? You will need about $200 to $250 budgeted for your feeding monthly.

The good thing though is that living in Santa Fe means ready access to the farmers’ markets and local shops that offer fresh, organic produce. You get the best quality for relatively low costs.

Healthcare

No one plans to be sick, but sometimes, you may have healthcare needs.

Even routine medical checks may warrant you to pay for the service received. Fortunately, healthcare is one of the more affordable living expenses in Santa Fe.

This does not mean it’s cheap, just relatively affordable!

For instance, a routine doctor’s visit typically costs around $120 to $150 without insurance. Prescription medications and specialist visits can push that figure higher to almost $260.

When it comes to insurance, the cost of health insurance premiums varies. But you should expect to pay around $400 to $600 per month for individual plans.

Transportation

Is Santa Fe a good place to live transportation-wise? Well, it’s pretty much a car-friendly city.

Fewer than 2% of the residents rely on public transportation, making access to public transit limited. However, when you do access one, a one-way ticket costs an average of $2, whereas a taxi ride costs $3.

Gas prices are around $3.10 per gallon, and monthly car insurance costs an average of $100 to $150.

Education and Childcare

Living in Santa Fe with kids means extra costs for their education and childcare.

The public schools are decent and free, but you will have to pay for school supplies and occasional field trips. However, if you prefer private schools, budget between $8,000 and $25,000 for fees per year.

Final costs usually depend on the school. Daycare and preschool options cost between $1,000 and $1,400 per month.

Income and Job Opportunities

To afford the living expenses in Santa Fe, you need to have a means to make ends meet—as expected.

Santa Fe’s economy thrives on tourism, arts, retail, healthcare, and education. So, you shouldn’t be hard-pressed getting a job in any of these industries. 

Even though the median household income is lower than the national average, you discover that the cost of living here makes it bearable. However, the level of affordability varies among residents and salaries can vary widely depending on your field.

Being an executive director places you within the average salary of $65,940. A director of operations earns an average salary of $74,220, meanwhile an office manager goes home with an average of $46,500.

• Median Household Income: $67,663
• Unemployment Rate: 3.4%
• People Living in Poverty: 13.7%

So, what salary do you need to live in Santa Fe comfortably? 

As a single person, about $3,733 per month will go a long way whereas you need around $8,640 to live comfortably with a family.

Taxes

New Mexico has a progressive income tax system. In addition to this, you also pay sales and property taxes as well in Santa Fe.

Luckily, you get a sort of breather as the property taxes are relatively low compared to national averages.

• Sales Tax Rate: 8.19%
• Median Property Tax Rate: 0.55%
• Income Tax Rate: 1.7% – 5.9%

The Bottom Line: Santa Fe’s Economy 

Living in Santa Fe is a dream!

The City Different does its thing differently. While it may not be the most affordable city in the U.S., it’s definitely not the priciest either.

Housing and transportation are likely going to be your biggest expense here. While housing prices are in a current decline, you’ll still pay higher than the national average.

However, for most other things like healthcare, food, and utility, you are more than likely to save more from these compared to most other U.S. cities. 

In the end…

Your earnings here may not be high, but it’s usually enough to offset your bills and afford you a comfortable lifestyle in the City Different.