Is it cheaper to live in Albuquerque or Ann Arbor?

Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 36% below Ann Arbor, MI's $1,630, mainly because of rent.

How much more do you need to earn to live in Albuquerque than in Ann Arbor?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $56,000 in Ann Arbor.

Which has lower taxes, Albuquerque or Ann Arbor?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Ann Arbor under Michigan's (a top state income tax rate of 4.25% and a 6% state sales tax).

Albuquerque vs Ann Arbor Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Ann Arbor

Michigan

$1,630/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Albuquerque, NM versus $1,630 in Ann Arbor, MI. Overall, Albuquerque, NM is roughly 36% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $81,089 in Ann Arbor, MI — about 19% higher in Ann Arbor, MI. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Michigan has a top state income tax rate of 4.25% and a 6% state sales tax.

Albuquerque, NM

Ann Arbor, MI

Rent

Studio

$797

$1,274

+60% in Ann Arbor, MI

1 Bedroom

$889

$1,389

+56% in Ann Arbor, MI

2 Bedroom

$1,140

$1,692

+48% in Ann Arbor, MI

3 Bedroom

$1,459

$1,812

+24% in Ann Arbor, MI

Buying a Home

Median Home Value

$266,700

$435,100

+63% in Ann Arbor, MI

Income

Median Household Income

$65,604

$81,089

+24% in Ann Arbor, MI

Metro Median Wage (annual)

$48,060

$55,380

+15% in Ann Arbor, MI

People & Lifestyle

Median Age

38.7 yr

27.7 yr

+11.0 yr in Albuquerque, NM

Homeownership

61.5%

45.6%

+15.9 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

77.7%

+39.0 pp in Ann Arbor, MI

Avg Commute

22.2 min

19.9 min

+2.3 min in Albuquerque, NM

Crime (per 100k/yr)

Violent Crime

1,194.3

311

+74% in Albuquerque, NM

Property Crime

4,766.6

1,744.5

+63% in Albuquerque, NM

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.2°F

47.7°F

+9.5°F in Albuquerque, NM

Annual Precipitation

9.4 in

32.8 in

+23.4 in in Ann Arbor, MI

Gas

Regular Gasoline

$3.62/gal

$3.85/gal

+6% in Ann Arbor, MI

Area: Gulf Coast (PADD 3) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

Free

—

Adult base one-way fare — ABQ RIDE vs — (2026).

Utilities

Electricity (¢/kWh)

15.1

23.0

+53% in Ann Arbor, MI

Natural Gas ($/MCF)

$9.31

$19.72

+112% in Ann Arbor, MI

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.31

+10% in Albuquerque, NM

Bread (lb)

$2.04

$1.66

+19% in Albuquerque, NM

Eggs (doz)

$2.19

$3.63

+66% in Ann Arbor, MI

Ground Beef (lb)

$7.36

$6.77

+8% in Albuquerque, NM

Chicken (lb)

$2.01

$2.10

+4% in Ann Arbor, MI

Bananas (lb)

$0.70

$0.62

+12% in Albuquerque, NM

Average prices — West vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (NM / MI)

4.875%

+1.1 pp in MI

Income Tax (top rate)

5.90%

4.25%

+1.7 pp in NM

Albuquerque vs Ann Arbor — FAQ

Is it cheaper to live in Albuquerque or Ann Arbor?: Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 36% below Ann Arbor, MI's $1,630, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Ann Arbor?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $56,000 in Ann Arbor.
Which has lower taxes, Albuquerque or Ann Arbor?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Ann Arbor under Michigan's (a top state income tax rate of 4.25% and a 6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).