New Mexico vs Arizona – which state is better? If you have been wondering about that – look no further.
Arizona and New Mexico are neighboring states, so naturally they have a lot in common. But of course, there are also quite some differences between the two states.
My husband has lived and worked in both New Mexico and Arizona – and told me all about the pros and cons of each state.
If you are looking for a brutally honest review of which state is better – keep on reading!

Table of Contents
- 1. Population
- 2. Household Income
- 3. Median Home Price
- 4. Cost of Living
- 5. Healthcare
- 6. Safety
- 7. Weather
- 8. Social/ Lifestyle
- 9. Nature & Outdoors
- 10. Job Market
- Conclusion: New Mexico vs Arizona
- FAQ: New Mexico vs Arizona
1. Population
New Mexico
New Mexico has an estimated population of around 2.1 million people.
New Mexico is one of the least densely populated states in the country. It is the fifth-largest state in the U.S. by land area. As a result, there is more space and less congestion in the state.
New Mexico is known for its cultural diversity. It has a rich history influenced by Native American, Hispanic, and Anglo-American traditions.
New Mexico also has a significant Native American population, with 23 different recognized tribes.
You can witness the diversity in many different aspects, including art, cuisine, languages, and celebrations. There is a vibrant and culturally rich environment in the state.
Arizona
Arizona has an estimated population of around 7.2 million people.
The population density in Arizona is moderate compared to some other states. Arizona is the sixth-largest state in the U.S. by land area.
Arizona is known for its cultural diversity. The state offers a mix of different ethnicities and cultural backgrounds.
Arizona also has a significant Native American presence, with 22 recognized tribes.
New Mexico vs. Arizona
If you compare the population in New Mexico to Arizona, there are no big differences there.
New Mexico is a lot less dense than Arizona. The countries are not that different in size, but New Mexico has fewer inhabitants.
Both states have a lot of cultural diversity to offer, and are home to many different recognized Native American tribes.
My winner in this category is New Mexico because I prefer a less dense environment.

2. Household Income
New Mexico
The median household income in New Mexico was approximately $51,945 in 2019.
The median household income is the midpoint, where half of the households in the state earn more and half earn less.
The average household income in New Mexico was about $71,799 in 2019.
Arizona
The median household income in Arizona was around $62,055 in 2019.
The average household income in Arizona was around $83,384 in 2019.
New Mexico vs. Arizona
Both the average and the median household income are higher in Arizona.
This makes Arizona a clear winner in the category of Household income.
3. Median Home Price
New Mexico
In New Mexico, the median home price in 2021 was approximately $230,000.
Buying and renting a house in New Mexico was 8 % cheaper than the national average.
Arizona
In Arizona, the median home price in 2021 was around $360,000.
Buying and renting a house in Arizona was 20 % more expensive than the national average.
New Mexico vs. Arizona
All in all, the median home price in Arizona is definitely higher than in New Mexico.
Buying and renting in Arizona is significantly more expensive than the national average. Meanwhile, it is cheaper than the national average in New Mexico.
This means, New Mexico wins the category of the Median Home Price.
However, both states offer a range of housing options. Apartments, townhouses, and single-family homes are available for different tastes and budgets.


4. Cost of Living
Transportation Cost
Transportation costs, including fuel prices and vehicle prices, are pretty much equal in both New Mexico and Arizona.
Transportation cost in Arizona is slightly more expensive than the national average.
Food
On average, food in New Mexico is about 3 % lower than the national average.
Meanwhile it is about 2 % higher than the national average in Arizona.
All in all, food and eating out is significantly cheaper in New Mexico than in Arizona.
Monthly Utilities
The cost of monthly utilities in New Mexico and Arizona is below the national average.
The monthly utilities in New Mexico are extremely cheap, with a full 10 % below the national average.
New Mexico vs Arizona
In the category Cost of Living New Mexico easily beats Arizona.
Transportation cost, food and monthly utilities are cheaper in New Mexico than in Arizona.
5. Healthcare
New Mexico
Arizona is ranked number 38 in the category Health Care overall in the United States.
Not only the healthcare quality in New Mexico is bad (# 32), the access to healthcare (# 43) is pretty bad.
The overall public health in New Mexico was rated # 31 compared to the other states.
The cost of healthcare in Arizona is on average 4 % lower than the national average.
Arizona
Arizona is ranked number 24 regarding Health Care overall in the United States.
While healthcare quality in Arizona is very good (# 5), the access to healthcare (# 46) is terrible in a national comparison.
The overall public health in Arizona was rated # 27 compared to the other states.
The cost of healthcare in Arizona is on average 4 % lower than the national average.
New Mexico vs Arizona
In the healthcare category, Arizona is the clear winner over New Mexico. Not only is healthcare better quality-wise, but also the cost is cheaper.
Access to healthcare is quite bad in both states.
6. Safety
New Mexico
New Mexico is ranked number 19 of the Safest States in the US in 2023.
The homicide rate in New Mexico is 9.1 for every 100k inhabitants.
The gun death rate in New Mexico is 22.7 per 100k (which makes it # 44 in the US).
Arizona
Arizona is ranked a shocking number 37 of the Safest States in the US in 2023.
Arizona has a homicide rate of 11.3 per 100k inhabitants.
The gun death rate in Arizona is 16.7 per 100k (making it # 31 in the US).
New Mexico vs. Arizona
Both New Mexico and Arizona have shockingly high homicide rates.
While New Mexico does a lot better in the overall Safety Ranking, Arizona is among the least safe states in the US.
The gun death rate is higher in New Mexico than in Arizona.
For me personally, I prefer New Mexico in regard of safety.
7. Weather
New Mexico
New Mexico has a pretty diverse climate. In general, it is characterized by hot summers and cold winters.
New Mexico’s mountains can have cooler temperatures and more rain.
In general, New Mexico receives relatively little rainfall, especially in the desert regions.
New Mexico is susceptible to droughts and wildfires. The state can also experience occasional severe weather like thunderstorms, hail, and high winds.
Arizona
Arizona mainly has a desert climate, famous for hot summers and mild winters. The southern part of the state is a lot hotter than the northern regions.
Arizona has low humidity and lots of sunshine throughout the year. The state also has limited rainfall, particularly in the desert areas.
Monsoon season occurs during the summer months. This can mean thunderstorms, heavy rainfall, and localized flooding.
Arizona is also prone to wildfires, especially in dry and forested areas.
New Mexico vs. Arizona
New Mexico and Arizona have a pretty similar climate.
Both states experience dry and hot summers with lots of sunshine, and mild winters.
In New Mexico as well as in Arizona there is a big danger of wildfire, especially in the dry regions.
Both states are located in seismically active regions, and while earthquakes are not common, they can occur.
There is no clear winner when comparing Arizona and New Mexico regarding the climate.


8. Social/ Lifestyle
New Mexico
New Mexico has a rich cultural heritage. Because of this, the state is known for its flourishing arts and cultural scene. There are lots of Native American art, traditional crafts, as well as fun festivals and events.
Santa Fe especially is famous for its art galleries, museums, and historic sites.
New Mexico has a relatively lower population density so there is a more relaxed and close-knit community feel.
For this reason, the social life in New Mexico often revolves around local traditions, community events, and celebrations.
Arizona
Arizona offers a mix of urban and suburban lifestyles. Bigger cities like Phoenix, Tucson, and Scottsdale are the major hubs of social activity.
The state has a diverse population and a blend of cultures, just like New Mexico.
The Phoenix metropolitan area has a great arts and music scene, with galleries, theaters, and music festivals.
Arizona also has a lively sports culture, with professional sports teams that have big fan bases.
New Mexico vs Arizona
The social life in New Mexico is quite different from the one in Arizona.
While Arizona is more famous for its urban lifestyle with bigger events, New Mexico is more into community festivals and smaller-scale activities.
Arizona wins in regard to sports teams and festivals, while New Mexico is famous for traditional arts and crafts.
I prefer the community-like social life of New Mexico – so for me, this is the winner.

9. Nature & Outdoors
New Mexico
New Mexico is famous for its enchanting landscapes and National Parks:
- Carlsbad Caverns National Park: magnificent underground caves and caverns, impressive stalactite and stalagmite formations
- White Sands National Park: Famous for its endless white gypsum sand dunes. The White Sands National Park is great for hiking
- Bandelier National Monument: Puebloan cliff dwellings, petroglyphs, and hiking trails through scenic canyons and forests
- Chaco Culture National Historical Park: Remains of an ancient Puebloan civilization, including impressive stone structures
- Gila Cliff Dwellings National Monument
Arizona
Arizona is also home to some of the most impressive and famous National Parks in the world:
- Grand Canyon National Park: One of the world’s most famous natural wonders, impressive canyons
- Saguaro National Park: Known for its iconic saguaro cacti forests, unique desert landscape and excellent hiking opportunities
- Petrified Forest National Park: Extensive collection of petrified wood, ancient fossils, and unique painted desert scenery
- Canyon de Chelly National Monument: Featuring sandstone cliffs, ancient Native American ruins
- Organ Pipe Cactus National Monument
New Mexico vs. Arizona
Both New Mexico and Arizona are internationally renowned for their amazing landscapes and National Parks.
Both states have a rich biodiversity, unique geological formations, and opportunities for outdoor fun.
Arizona’s Grand Canyon National Park is a world-famous natural wonder, while New Mexico offers the stunning White Sands National Park and a range of archaeological sites.
All in all, it is pretty much a tie between Arizona and New Mexico regarding Outdoors and National Parks.
10. Job Market
New Mexico
New Mexico’s job market is heavily influenced by industries such as oil and gas, government, education, healthcare, and tourism.
Lately, New Mexico’s economy has been diversifying. Emerging sectors such as renewable energy, aerospace, film production, and advanced manufacturing are on the rise.
Sadly, the state has faced some economic challenges. There were more periods of slower job growth and higher unemployment rates compared to the national average.
The current unemployment rate in New Mexico is 3.5 %.
Arizona
Arizona’s job market has a diversified economy. Many industries, such as healthcare, education, government, technology, finance, tourism, and manufacturing are thriving.
The Phoenix metropolitan area is a major economic hub.
Arizona has a favorable business environment, lower taxes, and a relatively lower cost of living compared to some other states.
Arizona also has a strong tourism industry, particularly in popular destinations like Sedona, Tucson, and the Grand Canyon. This generates lots of jobs as well.
The current unemployment rate in Arizona is 3.5 %.
New Mexico vs. Arizona
The unemployment rate is the same in Arizona and New Mexico.
While New Mexico sometimes suffers periods of slower economic growth, Arizona is attracting businesses with favorable conditions.
All in all, the job market in Arizona is slightly better in my opinion.
Conclusion: New Mexico vs Arizona
To sum it up, New Mexico and Arizona are remarkably similar in many regards.
There is no clear winner in this competition.
For me and my husband, New Mexico is the better choice, because it is more quiet, less dense, and has more of a communal feeling.
In general, New Mexico is not only safer but also a lot cheaper. Arizona on the other hand has better healthcare and the average income is bigger.
Check out my favorite city in New Mexico, Alamogordo, and which cool things to do there.
If you don’t like any of them, make sure to check out my reasons not to move to Texas.
Coming from Europe? Read up about my favorite reasons to move from Europe to the US and my tips for flying from Europe to the US.
FAQ: New Mexico vs Arizona
New Mexico and Arizona differ in terms of their cultural heritage, climate, and natural landscapes. New Mexico is known for its rich Native American and Hispanic influences, diverse weather conditions, and iconic sites like Carlsbad Caverns and White Sands. Arizona offers a blend of desert landscapes, the famous Grand Canyon, and a more diversified economy with vibrant urban areas like Phoenix and Tucson.
Generally, it is considered cheaper to live in New Mexico compared to Arizona. New Mexico has a lower cost of living, including lower median home prices and overall expenses. However, the average household income in New Mexico is lower as well.
Arizona tends to be hotter than New Mexico overall. Arizona has a predominantly arid and desert climate, with hot summers and mild winters. New Mexico also experiences hot summers. But New Mexico has more variation in climate due to higher elevations and northern regions with cooler temperatures.
Arizona offers a warmer climate, diverse natural landscapes, and vibrant urban areas, while New Mexico has a rich cultural heritage, lower cost of living, and a variety of outdoor activities. Consider factors like climate, amenities, cost of living, and lifestyle preferences to make the best decision for your retirement.