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NEW MEXICO
Moving in to New Mexico
New Mexico is overtaking Arizona and Florida as one of the
most popular destinations for retirees, as boomers move here from
pricier states. According to a recent survey from United Van Lines,
more than four out of 10 people moving to New Mexico cited retire-
ment as a reason.
e National Association of Homebuilders (NAHB) states that
many retirees are coming from California. e Golden State has a
top individual tax income rate of 13.3% and is ranked eighth out of
all 50 states in average real estate taxes, based on NAHB analysis of
data from the 2017 American Community Survey and U.S. Census
Bureau, at $4,623 annually.
"I think New Mexico is getting a lot of its traffic from Cali-
fornia," observed Deborah Blake, principal at e Ipsum Group.
"People are exiting because of cost of living, and property and
income taxes."
As the more attractive option, New Mexico is near the bot-
tom 20% of states, with annual real estate taxes averaging around
$1,500, with an income tax rate of 4.9% and a median home value of
$171,300. ese lower taxes and rates make it especially attractive to
homeowners who have accumulated a lot of home equity.
In addition to the purchase price, these buyers are also con-
sidering upgrades. Retirees wanting to maximize their equity in
what will likely be their last home will want the most they can get,
including small, maintenance-free yards and high-end kitchen
appliances. According to Blake, energy-efficient features can lower
monthly costs.
"ese buyers spend double what a conventional buyer spends
on upgrades, but they're much more sensitive to monthly costs," she
said.
"Most 55+ buyers are looking to downsize," Blake added. "If they
can't take advantage of their home equity, they're not making the
move."
On top of the costs, areas such as Arizona and New Mexico are
also relatively disaster-free. Boomers looking to buy for retirement
would prefer more low-maintenance homes, away from the possibil-
ity of wind and flooding in hurricane- and tornado-prone areas.
