Home › Compare › Phoenix, AZ vs Albuquerque, NM

Cost of Living: Phoenix, AZ vs Albuquerque, NM

A data-driven comparison of housing, groceries, transportation, taxes, job market and more. See which city gives you more for your money.

8.0% Albuquerque, NM is cheaper overall
17.0% 17.0% cheaper housing
2.0% 2.0% cheaper groceries
Updated April 2026 · Data: Bureau of Labor Statistics, U.S. Census Bureau National average = 100

At a Glance

🏠 Housing 17.0% cheaper
Phoenix
106
Albuquerque
88
🛒 Groceries ~Same
Phoenix
98
Albuquerque
96
🚗 Transportation 5.0% cheaper
Phoenix
101
Albuquerque
96
🏥 Healthcare 3.2% cheaper
Phoenix
95
Albuquerque
92
⚡ Utilities 11.1% cheaper
Phoenix
108
Albuquerque
96

Detailed Breakdown

Category Phoenix, AZ Albuquerque, NM Difference
Overall Cost Index100928.0% less
Housing1068817.0% less
Median 1BR Rent$1,280$1,05018.0% less
Median Home Price$370,000$280,00024.3% less
Groceries9896~Same
Transportation101965.0% less
Healthcare95923.2% less
Utilities1089611.1% less

Tax Comparison

Tax Type Phoenix, AZ Albuquerque, NM
State Income Tax2.50%5.90% (top)
State Sales Tax5.60%5.00%
Avg Property Tax Rate0.51%0.67%
Estate / Inheritance TaxNoneNone

What You'd Need to Earn

Phoenix, AZ
$68,000
Median household income
Albuquerque, NM
$58,000
Median household income
⚠️ Heads up: Albuquerque costs more but median income is lower. You may need to earn more to maintain the same standard of living.

Salary Equivalent Calculator

Find out what you'd need to earn in Albuquerque to maintain your Phoenix lifestyle.

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Based on overall cost index: Phoenix (100) vs Albuquerque (92). This is an estimate for comparison purposes.

Job Market Snapshot

Unemployment Rate
Phoenix3.9%
Albuquerque4.5%
Job Growth (YoY)
Phoenix3.3%
Albuquerque2.0%
Top Industries
PhoenixTech, Healthcare, Finance
AlbuquerqueGovernment, Defense, Healthcare

Quality of Life

Avg Commute
Phoenix27 min
Albuquerque22 min
Walk Score
Phoenix38
Albuquerque36
Air Quality (AQI)
Phoenix58
Albuquerque42
Avg Temperature
Phoenix75°F
Albuquerque57°F
Population
Phoenix1,624,569
Albuquerque564,559

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Planning Your Move?

Here are some helpful resources if you're considering relocating.

🏠 Find ApartmentsBrowse rentals in Phoenix and Albuquerque → 🚚 Get Moving QuotesCompare prices from top movers → 📈 Check Home ValuesSee real estate trends in both cities → 💼 Search JobsFind open positions in Albuquerque →

Compare Other Cities

Phoenix vs Austin → Phoenix vs Denver → Phoenix vs Nashville → Albuquerque vs Raleigh → Albuquerque vs Portland → Albuquerque vs Chicago →

Frequently Asked Questions

Is Phoenix or Albuquerque cheaper to live in?+
Albuquerque is the more affordable option overall. The biggest difference is in housing costs, where the gap is about 17.0%. Day-to-day expenses like groceries and transportation are closer between the two cities.
How much is rent in Phoenix vs Albuquerque?+
A typical one-bedroom apartment costs around $1,280/month in Phoenix and $1,050/month in Albuquerque — a difference of about $230 per month.
Which city has lower taxes, Phoenix or Albuquerque?+
Arizona has a state income tax of 2.50% and sales tax of 5.60%. New Mexico has a state income tax of 5.90% (top) and sales tax of 5.00%. Consider all tax types together when evaluating total tax burden, as states with no income tax often compensate with higher sales or property taxes.
Can I afford to move from Phoenix to Albuquerque?+
Median household income in Phoenix is $68,000 compared to $58,000 in Albuquerque. Use the salary calculator above to see what you'd need to earn to maintain your current standard of living.
What about buying a home in Phoenix vs Albuquerque?+
The median home price in Phoenix is $370,000 versus $280,000 in Albuquerque — a difference of $90,000. Property tax rates also differ: Arizona averages 0.51% while New Mexico averages 0.67%.