A+
5%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
10%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Carlsbad New Mexico National
Cost of living9593100
Goods & Services9797100
Groceries9797100
Health care9497100
Housing9086100
Transportation9495100
Utilities9990100

An Overview of Cost of Living in Carlsbad, NM

Are you thinking about relocating, but curious about the potential cost of living in Carlsbad? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Carlsbad stands at 95, making it 5% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

Everyday expenditures like food, housing, goods and services, transportation and health care in Carlsbad are priced in a manner consistent with other areas. This means that residents of Carlsbad can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

What Do Locals Say About the Cost of Living in Carlsbad?

Nobody knows their city better than the people who actually live there. So, we asked 5 local residents how they would rate the cost of living in Carlsbad and this is how they responded. 40% of people said that the cost of living was affordable, with prices decreasing, while 60% of people said that the cost of living was very expensive and prices continue to rise.

Is Carlsbad Affordable?

Is Carlsbad affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Carlsbad, for instance, where the median home price falls 18.6% lower than the national average, and monthly rent rates are 10.6% higher than usual. Additionally, median income levels contribute to the equation, with Carlsbad flaunting a median household income of $69,786, 26.1% higher than the national norm.

What Factors can Influence the Cost of Living in Carlsbad?

Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Carlsbad, the housing index stands at 9.8% lower than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Where is the Data From?

The cost of living in Carlsbad, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Carlsbad is 2% higher than the New Mexico average
  • The cost of living in Carlsbad is 5% lower than the national average
  • Carlsbad housing is 10% lower than the national average
  • New Mexico general sales tax is 2% lower than the national average
  • New Mexico state income tax is 35% lower than the national average

Most Affordable Places to Live in and Around Carlsbad

See all the best places to live around Carlsbad

Compare Carlsbad, NM Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$76,217$6,351$1,778$2,287
      Renters$49,668$4,139$1,159$1,490
      The affordability of the housing market in Carlsbad, NM as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Carlsbad homeowners, the median income is $76,217. This indicates that a monthly maximum of $1,778 should be spent by homeowners on all housing related costs. Renters have a median income of $49,668. This indicates that renters would have a maximum of $1,159 for their rent related monthly costs.

      New Mexico Sales Tax

      State General Sales Tax With Max Surtax
      New Mexico 5% 8.688%

      New Mexico Income Tax

      State Income Tax (Low) Income Tax (High)
      New Mexico 1.7% 5.9%

      Goods & Services

      Item Carlsbad National avg. Difference
      Haircut $27.73$24.2614.3%
      Beauty Salon $70.27$45.5654.2%
      Toothpaste $3.61$3.702.5%
      Shampoo $1.15$1.2810.2%
      Movie $11.70$12.133.6%
      Bowling $17.73$18.001.5%

      Groceries

      Item Carlsbad National avg. Difference
      Ground Beef $5.50$5.845.8%
      Fried Chicken $1.67$1.576.0%
      Milk $4.58$4.672.0%
      Potatoes $4.86$4.931.5%
      Pizza $11.64$12.093.7%
      Beer $10.47$10.410.6%

      Health Care

      Item Carlsbad National avg. Difference
      Optometrist $134.65$125.687.1%
      Doctor $146.52$135.787.9%
      Dentist $122.61$113.298.2%
      Ibuprofen $10.35$10.652.8%
      Lipitor $466.56$468.600.4%

      Housing

      Item Carlsbad National avg. Difference
      Home Price $150,300.00$184,700.0018.6%
      Avg. Mortgage Payment $1,699.62$2,346.6927.6%
      Apartment Rent $1,050.00$949.0010.6%

      Transportation

      Item Carlsbad National avg. Difference
      Gasoline $3.06$3.4611.5%
      Tire Balancing $61.55$59.922.7%

      Utilities

      Item Carlsbad National avg. Difference
      All Electricity $137.32$193.9929.2%
      Phone $207.58$192.258.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Malaga, NM112963.6%
      Loving, NM1,1748910.8%
      Livingston Wheeler, NM444955.1%
      Happy Valley, NM780955.0%
      La Huerta, NM1,4891109.7%
      Carlsbad, NM29,278955.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Desert Hot Springs, CA29,28011212.1%
      Jamestown, NY29,2908416.2%
      Fortuna Foothills, AZ29,297963.9%
      Eagle Pass, TX29,3078811.9%
      Central, LA29,2351054.7%
      Carlsbad, NM29,278955.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.