Living Cost Compare
Albuquerque

New Mexico

$1,040/mo est.

vs
Phoenix

Arizona

$1,430/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 $1,430 in Phoenix, AZ. Overall, Albuquerque, NM is roughly 27% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $77,041 in Phoenix, AZ — about 15% higher in Phoenix, AZ. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Rent

Studio
$797
$1,127
+41% in Phoenix, AZ
1 Bedroom
$889
$1,253
+41% in Phoenix, AZ
2 Bedroom
$1,140
$1,493
+31% in Phoenix, AZ
3 Bedroom
$1,459
$1,771
+21% in Phoenix, AZ

Buying a Home

Median Home Value
$266,700
$381,900
+43% in Phoenix, AZ

Income

Median Household Income
$65,604
$77,041
+17% in Phoenix, AZ
Metro Median Wage (annual)
$48,060
$51,380
+7% in Phoenix, AZ

People & Lifestyle

Median Age
38.7 yr
34.8 yr
+3.9 yr in Albuquerque, NM
Homeownership
61.5%
57.1%
+4.4 pp in Albuquerque, NM
Bachelor's+ (25+)
38.7%
32.3%
+6.4 pp in Albuquerque, NM
Avg Commute
22.2 min
25.7 min
+3.5 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime
1,193.2
799.6
+33% in Albuquerque, NM
Property Crime
4,766.2
2,338.9
+51% 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
75.1°F
+17.9°F in Phoenix, AZ
Annual Precipitation
9.4 in
8.2 in
+1.3 in in Albuquerque, NM

Gas

Regular Gasoline
$3.99/gal
$5.57/gal
+40% in Phoenix, AZ

Area: Gulf Coast (PADD 3) vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)
Free
$2.00

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

Utilities

Electricity (¢/kWh)
14.8
15.6
+5% in Phoenix, AZ
Natural Gas ($/MCF)
$11.90
$19.69
+65% in Phoenix, AZ

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

Groceries

Milk (gal)
$4.37
$4.37
about equal
Bread (lb)
$2.10
$2.10
about equal
Eggs (doz)
$2.25
$2.25
about equal
Ground Beef (lb)
$7.23
$7.23
about equal
Chicken (lb)
$2.14
$2.14
about equal
Bananas (lb)
$0.74
$0.74
about equal

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

State Taxes

Sales Tax (NM / AZ)
4.875%
5.6%
+0.7 pp in AZ
Income Tax (top rate)
5.90%
2.50%
+3.4 pp in NM

Albuquerque vs Phoenix — FAQ

Is it cheaper to live in Albuquerque or Phoenix?
Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 27% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Phoenix?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $50,000 in Phoenix.
Which has lower taxes, Albuquerque or Phoenix?
Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% 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).