First National Bank of Eddy · Photo: MRobison · CC BY-SA 3.0Measured against area pay, Carlsbad costs less to live in than 80% of U.S. towns
It ranks #12 of 72 in New Mexico for affordability. Up 2.8% in a year, 20% below the New Mexico typical home.
Census 2020–24 home values, rents, tax bills and cost burden, measured against the median household income of the Carlsbad-Artesia, NM micro area ($78K). How TownRatings grades cost of living
The grade compares costs with what households across the Carlsbad-area micro earn ($78K, Census 2020–24). The typical home costs 2.6 years of area income, and 33% of renters pay 30% or more of income for housing.
In dollars
- $253Ktypical home, 20% below the New Mexico typical homeZillow, September 2026
- $1,230a month for a two-bedroom, utilities includedHUD Fair Market Rent, 2026
In paychecks the grade
- 2.6 yrsof area income buys the typical home; the typical U.S. town: 3.3$78K, Carlsbad-area income
- 19%of area income goes to the median rent; the typical U.S. town: 18%Census 2020–24
- 33%of renters pay 30%+ of income for housing; across New Mexico: 50%Census 2020–24
- 15%of owners do; the typical U.S. town: 20%Census 2020–24
The short version on homes in Carlsbad
Rent is easier on renters here
33% of renter households spend 30% or more of their income on rent, against 50% across New Mexico. A standard two-bedroom is 20% of the median household income. Renting ↓
Prices are 8% below their 2021 peak
The typical Carlsbad home peaked at $275K in June 2021 and is worth about $253K now. Across New Mexico, values are at or near their high. Over five years, Carlsbad is down 5.2%. Price trend ↓
Written from the data on this page. Home values are the Zillow Home Value Index, through September 2026; sales and supply are Redfin’s for September 2026; permits are Census figures through 2025; incomes, rents paid, taxes and ownership come from the Census American Community Survey.
What’s behind Carlsbad’s grade
Measured against what households in the area earn, Carlsbad is more affordable than 80% of U.S. towns, #12 of 72 in New Mexico. Rent pulls the grade down most; property tax holds it up.
Values have lagged New Mexico: the typical Carlsbad home is down 5.2% in five years, against 25.1% statewide (Zillow).
Down 5.2% in five years
Slower than New Mexico (25.1%).
Show as a table
| January | Carlsbad | New Mexico |
|---|---|---|
| 2017 | $222,000 | $177,000 |
| 2018 | $196,000 | $183,000 |
| 2019 | $212,000 | $191,000 |
| 2020 | $237,000 | $203,000 |
| 2021 | $265,000 | $228,000 |
| 2022 | $263,000 | $261,000 |
| 2023 | $244,000 | $285,000 |
| 2024 | $240,000 | $299,000 |
| 2025 | $253,000 | $310,000 |
| 2026 | $250,000 | $313,000 |
| September 2026 | $253,000 | $316,000 |
A typical Carlsbad home worth $220K in October 2016 is worth about $253K today.
Zillow Home Value Index: the typical value of all homes (middle third), smoothed and seasonally adjusted, through September 2026.
A seller's market
Supply is tight — about 2.6 months of homes for sale at the current pace. Buyers should expect competition on well-priced homes.
Under ~4 months of supply favors sellers; over ~6 favors buyers.
Redfin Data Center, all residential sales, September 2026.
A typical home costs 2.6 years of area income
The calculator starts from the area income the grade uses. Switch to Carlsbad’s own median, or type yours.
That covers a typical Carlsbad home, with $67K to spare.
A two-bedroom rents for about $1,230 a month here, $210 less than owning.
An estimate, not a loan offer: payments of up to 28% of income, a 30-year fixed loan, Carlsbad’s typical property tax (0.53% of value a year, from the Census) and insurance of about 0.35%. Mortgage insurance, HOA fees and other debts aren’t included.
A two-bedroom rents for about $1,230
Renters already here pay a median of $1,236.
Fair Market Rent a month, utilities included
U.S. Department of Housing and Urban Development, Fair Market Rents by ZIP code (Eddy County, NM): the 40th-percentile rent plus utilities for a standard unit. Median rent and renters: U.S. Census Bureau, American Community Survey.
220 new homes permitted in 2025
Builders were permitted 220 new homes in Carlsbad in 2025: 162 single-family houses and 58 in buildings with two or more homes, worth about $63 million to build. That's 6.9 per 1,000 residents, faster than across New Mexico (5.2). Over the past 10 years, Carlsbad has permitted 2,028 homes in all.
Between the 2010 and 2020 censuses, Carlsbad gained 6,100 residents while 2,061 new homes were permitted: about 3 new residents per new home, more than across New Mexico (1.2): growth outpaced building.
Every year as a table
| Year | New homes | Single-family | 2+ per building | Value |
|---|---|---|---|---|
| 2026 (Jan–Aug) | 193 | 101 | 92 | $48.6 million |
| 2025 | 220 | 162 | 58 | $63 million |
| 2024 | 127 | 127 | 0 | $46.1 million |
| 2023 | 237 | 143 | 94 | $51.8 million |
| 2022 | 101 | 97 | 4 | $21.6 million |
| 2021 | 86 | 83 | 3 | $18.8 million |
| 2020 | 398 | 138 | 260 | $60.3 million |
| 2019 | 213 | 192 | 21 | $55.7 million |
| 2018 | 244 | 138 | 106 | $34.9 million |
| 2017 | 125 | 125 | 0 | $22 million |
| 2016 | 277 | 73 | 204 | $25.6 million |
| 2015 | 121 | 121 | 0 | $19.9 million |
| 2014 | 290 | 118 | 172 | $34.3 million |
| 2013 | 108 | 108 | 0 | $17.3 million |
| 2012 | 358 | 86 | 272 | $34 million |
| 2011 | 272 | 48 | 224 | $24.1 million |
| 2010 | 53 | 53 | 0 | $8 million |
| 2009 | 31 | 31 | 0 | $4 million |
| 2008 | 62 | 55 | 7 | $9.2 million |
| 2007 | 67 | 67 | 0 | $10.5 million |
| 2006 | 59 | 59 | 0 | $8.1 million |
| 2005 | 39 | 39 | 0 | $4.8 million |
| 2004 | 52 | 52 | 0 | $6.2 million |
| 2003 | 55 | 55 | 0 | $4.6 million |
| 2002 | 40 | 40 | 0 | $4.8 million |
| 2001 | 30 | 30 | 0 | $3.7 million |
| 2000 | 26 | 26 | 0 | $3 million |
Homes authorized by building permits, counted in the year the permit was issued. U.S. Census Bureau, Building Permits Survey.
Property tax runs below the New Mexico norm
The median bill is $1,066 (New Mexico: $1,731), 0.53% of a home’s value a year, against 0.70% statewide.
Census American Community Survey 2020–24: the median real-estate tax bill homeowners report, and that bill ÷ the median home value. Bills include town, school and county taxes. The Census reports bills over $10,000 only as “$10,000+”.
Carlsbad vs. its neighbors
Of the 1 towns here with a Zillow value, Carlsbad has the lowest. La Huerta and Happy Valley have no Zillow value, so they are in the table only.
Cost next door · one source per column
| Town | Cost | Typical home Zillow, September 2026 | Median value Census 2020–24 | Tax rate bill ÷ value | 2-bed rent HUD 2026 |
|---|---|---|---|---|---|
| Carlsbad | A− | $253K | $200K | 0.53% | $1,230 |
| La Huerta | C+ | — | $345K | 0.55% | $1,230 |
| Livingston Wheeler | – | — | $153K | — | $1,230 |
| Happy Valley | – | — | $200K | 0.21% | $1,230 |
“—” under Zillow: Zillow publishes no value for that town, so it’s left blank rather than mixed with Census figures. “—” under Cost: not graded (too little Census data, or under 1,000 residents).
Questions about the cost of living in Carlsbad
Is Carlsbad expensive to live in?
Measured against what households in the area earn, Carlsbad costs less than 80% of U.S. towns: an A− for cost of living, #12 of 72 in New Mexico. The typical home costs 2.6 years of the median household income of the Carlsbad-Artesia, NM micro area ($78K).
How much does a house cost in Carlsbad?
About $253K, Zillow’s typical value for September 2026, up 2.8% in a year. The New Mexico typical home is $316K.
What salary do you need to live in Carlsbad?
To buy the typical home with 20% down at 6.3%, about $62,000 a year, keeping the payment (about $1,440 a month with tax and insurance) at 28% of income. To rent a two-bedroom at 30% of income, about $49,000.
How much is rent in Carlsbad?
HUD puts a two-bedroom at about $1,230 a month with utilities, the going rate for someone moving in. Renters already here pay a median of $1,236 (Census 2020–24).
What are property taxes in Carlsbad?
The median bill is $1,066 a year, 0.53% of the median home value (New Mexico: $1,731, 0.70%), from the Census 2020–24.
Are home prices in Carlsbad going up?
Yes: up 2.8% in the past year and -5.2% in five years, against 25.1% across New Mexico (Zillow).
Neighbors talk housing
What Carlsbad buyers, sellers and renters are saying.
Home values: Zillow Home Value Index (ZHVI), Zillow Research, September 2026. Sales, days on market and supply: Redfin Data Center, September 2026. Income, ownership, taxes and rent: U.S. Census Bureau, American Community Survey. New homes: U.S. Census Bureau, Building Permits Survey. Fair Market Rents: U.S. Department of Housing and Urban Development. The calculator is an estimate, not a loan offer. Regional price levels: BEA; electricity: EIA. How TownRatings grades cost of living.