A+
9%
Overall NAT. AVG.
6%
Goods & Services NAT. AVG.
13%
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 Las Cruces New Mexico National
Cost of living9193100
Goods & Services9497100
Groceries9697100
Health care9897100
Housing8786100
Transportation9695100
Utilities8190100

An Overview of Cost of Living in Las Cruces, NM

Knowing the cost of living in Las Cruces allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Las Cruces stands at 91, marking it 9% lower than the national average.

In Las Cruces, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Las Cruces will resemble that of an average city, contributing to a manageable cost of living.

What Do Locals Say About the Cost of Living in Las Cruces?

The real experts on a city are its residents. That's why we reached out to 15 locals to get their views on the cost of living in Las Cruces. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 33% found it budget-friendly with decreasing prices, while 67% said it's simply not affordable as prices have continued to rise.

Is Las Cruces Affordable?

Is Las Cruces 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 Las Cruces, for instance, where the median home price falls 12.8% lower than the national average, and monthly rent rates are 15.2% lower than usual. Additionally, median income levels contribute to the equation, with Las Cruces flaunting a median household income of $45,140, 18.4% lower than the national norm.

What Factors can Influence the Cost of Living in Las Cruces?

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Las Cruces, the utilities index registers at 18.7% lower than the national average.

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Las Cruces, the prevailing sales tax rate starts at 5%, and income tax rates kick off at 1.7%.

Where is the Data From?

The Las Cruces cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Las Cruces is 2% lower than the New Mexico average
  • The cost of living in Las Cruces is 9% lower than the national average
  • Las Cruces housing is 13% 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 Las Cruces

See all the best places to live around Las Cruces

Compare Las Cruces, 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$64,242$5,354$1,499$1,927
      Renters$24,284$2,024$567$729
      To approximate the cost of living and the housing affordability in Las Cruces, NM, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Las Cruces have a median income of $64,242. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,499 per month to avoid calamity and poverty. The renters in the city have an income of about $24,284, which would make their monthly maximum allowable rental costs $567.

      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 Las Cruces National avg. Difference
      Haircut $24.56$24.261.2%
      Beauty Salon $46.00$45.561.0%
      Toothpaste $3.67$3.700.8%
      Shampoo $1.09$1.2815.2%
      Movie $13.00$12.137.1%
      Bowling $14.33$18.0020.4%

      Groceries

      Item Las Cruces National avg. Difference
      Ground Beef $5.69$5.842.6%
      Fried Chicken $1.32$1.5716.1%
      Milk $4.53$4.673.0%
      Potatoes $4.15$4.9315.8%
      Pizza $12.38$12.092.4%
      Beer $10.68$10.412.5%

      Health Care

      Item Las Cruces National avg. Difference
      Optometrist $150.67$125.6819.9%
      Doctor $140.33$135.783.4%
      Dentist $113.72$113.290.4%
      Ibuprofen $10.29$10.653.4%
      Lipitor $517.39$468.6010.4%

      Housing

      Item Las Cruces National avg. Difference
      Home Price $161,100.00$184,700.0012.8%
      Avg. Mortgage Payment $2,303.17$2,346.691.9%
      Apartment Rent $805.00$949.0015.2%

      Transportation

      Item Las Cruces National avg. Difference
      Gasoline $3.35$3.463.3%
      Tire Balancing $53.65$59.9210.5%

      Utilities

      Item Las Cruces National avg. Difference
      All Electricity $192.00$193.991.0%
      Phone $189.63$192.251.4%
      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.
      Pecan Park, NM448937.0%
      Cañon, NM173937.0%
      La Mesa, NM6427821.7%
      Mesquite, NM8927920.7%
      Radium Springs, NM1,4878020.0%
      Las Cruces, NM102,950918.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Sparks, NV102,89512019.7%
      South Bend, IN102,6868218.2%
      El Cajon, CA103,24914746.6%
      Burbank, CA103,41118787.5%
      Rialto, CA103,54912727.3%
      Las Cruces, NM102,950918.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.