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 a few 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. So, if you are looking for a brutally honest review of which state is better, keep on reading!
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. The state 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 7.6 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. And it’s 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.
So, which has the bigger population?
If you compare the population in New Mexico to that of 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.
Household Income
New Mexico:
The median household income in New Mexico was approximately $62,125 as of 2023.
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 $85,549 in 2023.
Arizona:
The median household income in Arizona was around $76,872 in 2023.
The average household income in Arizona was around $104,138 in 2023.
Which state has a higher household income?
Both the average and the median household income are higher in Arizona. You can see the results of this simply by driving through the states – most houses are a lot more upkept, and the villages don’t look so abandoned and damaged.
This makes Arizona a clear winner in the category of household income.
Median Home Price
New Mexico:
In New Mexico, the median home price in 2025 was approximately $358,000.
Buying and renting a house in New Mexico is generally lower than the national average.
Arizona:
In Arizona, the median home price in 2025 was around $451,500.
Buying and renting a house in Arizona is generally more expensive than the national average.
Which has the most affordable housing market?
All in all, the median home price in Arizona is definitely higher than in New Mexico.
Buying and renting in Arizona are significantly more expensive than the national average. Meanwhile, it is cheaper than the national average in New Mexico.
Both states offer a range of housing options. Apartments, townhouses, and single-family homes are available for different tastes and budgets. Arizona does have more luxury estates, especially because it is more popular with tourists.
This means New Mexico wins the category of the Median Home Price.
Cost of Living
Transportation Cost:
Transportation costs, including fuel prices and vehicle prices, are pretty much equal in both New Mexico and Arizona.
Transportation costs in Arizona are 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 are 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.
Which state wins the cost-of-living battle?
In the category of Cost of Living, New Mexico easily beats Arizona.
Transportation costs, food, and monthly utilities are cheaper in New Mexico than in Arizona.
Healthcare
New Mexico:
New Mexico is ranked number 38 in the category of Health Care overall in the United States.
Not only is the healthcare quality in New Mexico bad (# 32), but the access to healthcare (# 43) is pretty bad. too. The overall public health in New Mexico was rated # 31 compared to the other states.
Arizona:
Arizona is ranked number 24 regarding Healthcare overall in the United States.
While healthcare quality in Arizona is very good (# 5), access to healthcare (# 46) is terrible in a national comparison.
The overall public health in Arizona was rated # 27 compared to the other states. And the cost of healthcare in Arizona is, on average, 4% lower than the national average.
Which offers better healthcare?
In the healthcare category, Arizona is the clear winner over New Mexico. Not only is healthcare of better quality, but also the cost is cheaper.
Access to healthcare is quite bad in both states in my experience, at least in the rural areas. I am a hypochondriac, I should know.
Safety
New Mexico:
New Mexico is ranked number 48 of the Safest States in the US in 2025.
The homicide rate in New Mexico is 11.5 per 100k inhabitants. And the gun death rate in New Mexico is 25.3 per 100k (which makes it # 44 in the US).
Arizona:
Arizona is ranked number 30 of the Safest States in the US in 2025.
Arizona has a homicide rate of 8.1 offences per 100k inhabitants as of 2021 (I couldn’t find more up-to-date data than this).
The gun death rate in Arizona is 18.5 per 100k (making it # 31 in the US).
Which state is safer?
Both New Mexico and Arizona have shockingly high homicide rates.
While Arizona does a lot better in the overall Safety Ranking, it is still regarded as one of the least safe states in the US. And the gun death rate is higher in New Mexico than in Arizona.
For me personally, I prefer New Mexico in regard to safety. As long as you avoid Albuquerque, you should be fine.
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.
The 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.
Which one boasts the best weather?
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.
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 arts, 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.
Which has the best social scene?
The social life in New Mexico is quite different from that 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. And 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.
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 is famous for its endless white gypsum sand dunes. Yes, White Sands National Park is great for hiking; we love the Dune Life Nature Trail here.
- 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: Established in 1907, this monument preserves a series of cliff dwellings that were inhabited during the late 13th century.
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, with 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: This park boasts exceptional biodiversity, notably the rare organ pipe cactus, named for its resemblance to organ pipes.
Which state offers the best outdoor activities?
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. New Mexico is more diverse, but Arizona has a lot of stunning, unique monuments too.
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 4.2%.
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. And 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 4.1%.
Winner of the best job market:
The unemployment rate is pretty much 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 my husband and me, New Mexico is the better choice, because it is quieter, 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 higher.
Arizona does have some stunning landscapes and monuments, just like New Mexico. All in all, it is a tie, and everyone will have to decide for themselves!
While you’re here, you may also enjoy reading my other expat guides –
Living in Portugal: What You Need to Know About Being An Expat in Portugal
Living in Ireland – What To Expect (Written By A Local)
Living in Sydney – What to expect from a local!
Living in Queenstown New Zealand (Absolutely Everything You Should Know)
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Last Updated on November 13, 2025 by snaphappytravel