Why This Overlooked Sun-Drenched City Could Be Your Ideal Retirement Spot
Key Takeaways
- Santa Rosa is an often-overlooked retirement option that’s affordable and known for its Southwestern charm.
- Santa Rosa residents pay less for housing, food, utilities, and taxes than residents throughout the state or the rest of the country.
- People looking for a small-town community that has access to nature, healthcare, and local events should consider Santa Rosa.
If you have dreams of retiring in New Mexico, but are put off by the high cost of living in cities like Santa Fe or Albuquerque, check out Santa Rosa, a hidden gem of the area. This small town only has a few thousand residents, but its low cost of living, natural beauty, and slower pace of life make it worth a look. You’ll be able to stretch your retirement dollars in a beautiful city that’s only a few miles from popular Southwestern destinations.
Cost of Living and Affordability
It’s no surprise that one of the biggest factors when deciding where to retire is how much it costs to live there. We compared Santa Rosa’s housing affordability, as well as utility and grocery costs, to the state and national averages.
We found that Santa Rosa is an attractive spot for retirees looking to stretch their retirement income. Not only do Santa Rosa residents pay less for housing, but they also save on food and taxes. Meanwhile, residents pay slightly more for healthcare costs, which could be because 24% of its population is of retirement age and may experience more health issues.
| Cost of Living Breakdown | |||
|---|---|---|---|
| Santa Rosa | State Average | National Average | |
| Median monthly housing costs | $516 | $963 | $1,338 |
| Average monthly food | $951 | $1,244 | $1,174 |
| Average monthly taxes | $957 | $961 | $1,156 |
| Average monthly transportation costs | $1,500 | $1,532 | $1,098 |
| Average monthly healthcare costs | $1,931 | $1,743 | $1,214 |
Taxes and Retirement Income
Only a handful of states still tax Social Security benefits, but New Mexico is not necessarily one of them. The state has a high income threshold for exempting Social Security, so single filers can enjoy a high income (up to $100,000 per year as of 2025) without having to pay taxes on the benefits. Joint filers can earn up to $150,000 in income before the benefits are taxed.
New Mexico’s handling of income and taxes is similar to that of surrounding Southwestern states, like Arizona and Texas, but it has even more generous income thresholds than Colorado, making it a more retirement-friendly option.
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Health Care Access
As you age, having convenient access to medical clinics and hospitals is vital. Fortunately, Santa Rosa is home to Guadalupe County Hospital and a dozen medical clinics.
Santa Rosa is also close to additional medical centers in Las Vegas, New Mexico, and Tucumcari, New Mexico, both around an hour away, so you’re sure to find access to health care that you might need.
Lifestyle and Recreation
Santa Rosa has something for everyone. Outdoors enthusiasts will enjoy the fishing and hiking available at Santa Rosa Lake State Park. If you have family with young kids visiting, you can take them to Park Lake, a city park with a swim beach and bouncy waterslides. Tourists from all around also come to see Blue Hole, a naturally clear swimming hole and renowned scuba diving spot.
If the outdoors aren’t necessarily your thing, swing by local art galleries to take in some of the iconic Southwestern culture. While you’re at it, stop by the Route 66 Auto Museum to see vintage cars and memorabilia, while learning about Santa Rosa’s part in the famous “Main Street of America.”
Climate and Quality of Life
Your finances shouldn’t be the only factor you consider when choosing a retirement location; it’s also important to consider the climate and quality of life you can expect. If you’re looking for sunny days, mild winters, and low humidity, Santa Rosa might be perfect.
Although the Southwest is known for its high temperatures in the summer, the climate is manageable with air conditioning. People looking to escape brutal winter temperatures will appreciate Santa Rosa’s mild winters and opportunities for outdoor exploration.
Community and Demographics
Santa Rosa is only five miles in size with a population of 2,742. This means you’ll get a small-town experience with a tight-knit community. And, since the population is low, there’s less congestion—something you may appreciate if you’re tired of fighting traffic.
It’s not surprising that a small population within a small space has a lower crime rate than larger neighboring counties. Guadalupe County only reported 80 crimes in 2020 (the most recent data available). Retirees might give personal safety and a sense of community more weight when deciding where to retire.
The Bottom Line
Santa Rosa might not generate the buzz of bigger cities, but it’s a solid retirement option if you’re looking for lower costs of living and Southwestern charm. As a retiree there, you’ll have easy access to nature, medical facilities, and community centers. With a population of just a few thousand people (a quarter of them retirees as well), you’re sure to make a place for yourself in this sun-drenched city.