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Retirees with their sights set on the sunny American Southwest but who also want convenient access to the rest of the planet could find Albuquerque, N.M., ideally positioned. Not only does this historic city have the largest commercial airport in the state, but it also connects to nationwide rail service. Travelers can even enjoy an air balloon ride if they feel the urge; Albuquerque is known as the “air ballooning capital of the world.”
Key Takeaways
- Albuquerque is well connected by air, with Albuquerque International Sunport offering nonstop service to 32 U.S. cities via eight major airlines and one commuter carrier.
- The city offers various cultural activities, including art and history museums, theaters, and galleries.
- Median home values in Bernalillo County are around $268,500, keeping housing costs relatively low.
- At 4,946–6,120 feet, Albuquerque has the highest elevation of the 50 largest U.S. cities—something retirees should factor in.
Travel Accessibility
Billed as “the gateway to New Mexico,” the Albuquerque International Sunport is served by eight major carriers and one commuter airline and offers nonstop service to 32 domestic destinations. It averaged 431 flights a day in 2024. Among the majors are American, Delta, JetBlue, Southwest, and United.
International travelers can make connections in such cities as Dallas, Denver, New York, or San Francisco.
Note
To call itself “international,” an airport needs to be equipped to handle international flights, even if it doesn’t currently have any.
Albuquerque International Sunport is about five miles from downtown and can be reached using one of the city’s ABQ Ride buses or various private shuttles and services.
For train fanciers, the Alvarado Transportation Center on the eastern end of downtown Albuquerque is a stop on Amtrak’s Southwest Chief line, which runs all the way from Chicago to Los Angeles. The center is also a hub for ABQ Ride local buses, New Mexico Rail Runner Express commuter trains, and Greyhound interstate bus lines.
Cost of Living and Affordability
Albuquerque is a relatively affordable city. Bernalillo County, which encompasses Albuquerque and the surrounding area, had median home values of $268,500, according to the most recent U.S. Census Bureau estimate. That was considerably lower than the national median for owner-occupied housing of $303,400.
The careers website Payscale estimates the cost of living in Albuquerque to be 5% lower than the national average. It calculates housing costs as 10% lower, utilities 13% lower, and groceries 2% lower, as of June 2025.
The Economic Policy Institute’s Family Budget Calculator (which takes into account housing, food, transportation, health care, taxes, and other necessities) estimates that a household with two adults and no children living in the Albuquerque metro area of Bernalillo County would spend $4,641 a month on average, or $55,688 a year.
As for taxes, New Mexico ranks 31st among the 50 states for its overall tax burden (with 50th place being worst), according to the Tax Foundation. That’s due in part to its relatively high sales and personal income taxes, which rank 41st and 37th, respectively.
New Mexico consumers pay an average combined state and local sales tax rate of 7.62%. (The state doesn’t call it a sales tax but instead imposes a gross receipts tax on merchants, who typically pass it on to the purchaser, much like a sales tax.) However, most groceries (except for prepared hot foods) and prescription drugs are exempt.
New Mexico has a progressive income tax, with a top rate of 5.9%.
Important
New Mexico taxes pension benefits and retirement account distributions as income, but it offers some exemptions for taxpayers over 65 if they meet the income requirements.
The maximum tax exemption is $8,000 for single taxpayers with incomes that don’t exceed $18,000 and married couples filing jointly with incomes up to $30,000. After that, the exemption ratchets down in $1,000 increments until it phases out entirely at $28,501 for singles and $51,001 for joint filers.
The state also taxes Social Security benefits, but those taxes only kick in at higher income levels. Single taxpayers with less than $100,000 in income are exempt, as are joint filers with less than $150,000 in income.
Also on the plus side, New Mexico does not have an estate tax or inheritance tax.
Lifestyle Considerations for Retirees
Visit Albuquerque, formerly known as the Albuquerque Convention & Visitors Bureau, says the weather is one of the main reasons people say they move to Albuquerque. “We bask in 310 days of sunshine, combined with a mild, dry climate and four distinct seasons,” it boasts.
That translates into plenty of outdoor opportunities for active retirees who enjoy hiking, biking, running, walking, or climbing. For golfers, Albuquerque’s public courses are open 364 days a year, weather permitting.
The Rio Grande, which cuts through the city, is open for kayaking and rafting but (happily for kayakers and rafters) not motorized craft. In skiing season, typically spanning the end of November to the end of March, skiers can head to Sandia Peak Ski Area, about 30 miles away.
Albuquerque also offers a wide range of cultural activities, including art and history museums, theaters, and galleries, some with an emphasis on the local Native American heritage. It hosts the New Mexico State Fair in September and the Albuquerque International Balloon Fiesta, said to be the world’s largest hot-air balloon festival, in October.
For retirees who like the idea of a college town, the University of New Mexico, the state’s flagship university, is also in Albuquerque, about two miles east of the city center.
The Bottom Line
Albuquerque is centrally located in the American Southwest, providing all of the climate advantages the region is known for. It is also a convenient home base for retirees who want to explore the rest of the U.S. and the world at large.
As is true with any potential retirement destination, it’s a smart idea to visit the area in all four seasons and possibly rent for a while before putting down roots. In particular, the city’s high altitude may not be for everyone.
