Aug 26, 2025
From its vast deserts and snow-capped peaks to a rich cultural heritage, there’s a reason why New Mexico is dubbed the Land of Enchantment. Unfortunately, when it comes to livability — such as safety and cost of living — it also ranks as the worst state to live in.
That’s according to a new study from WalletHub, which reveals the best and worst states to live in based on 51 weighted metrics belonging to five key buckets, including affordability, economy, education and health, quality of life and safety.
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For example, affordability included key metrics such as housing affordability, median annual property taxes, cost of living, median annual household income and homeownership rate.
Here’s why the bottom 10 states ranked poorly in 2025 — and if you’re living in the right state for your future goals.
Why New Mexico?
New Mexico ranked 50th overall, having earned the dubious distinction as the state with the highest crime rate in the country. For safety it came in at the 49th spot, beating only Washington, and in the health and education category it was ranked 48th.
It did slightly better — coming in at the middle of the pack — in affordability. Yet, the share of its population living in poverty is the third-highest in the country.
When it comes to crime, New Mexico ranks first in rates of both violent and property crime, according to FBI data cited by SafeHome.org. It says the state’s violent crime rate of 749 per 100,000 is 106% above the national average and the property crime rate of 2,888 per 100,000 is 51% above the national average.
New Mexico’s position along major transportation corridors “contributes to its status as a transit point for drug trafficking,” according to SafeHome.org. “Coupled with persistent poverty, limited economic opportunities in many areas and substance abuse issues, these factors have created difficult conditions for law enforcement agencies.”
Another recent WalletHub study named New Mexico the state with the worst public-school education in the country.
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The best and worst states to live in
Rounding out the worst 10 states to live in overall, according to the WalletHub study, Louisiana came in at second-worst, followed by Arkansas, Mississippi, Alaska, Nevada, South Carolina, Oklahoma, West Virginia and Alabama.
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Louisiana came in last in the economy category. Arkansas ranked poorly in quality of life — despite being the fifth-best state for affordability. Mississippi ranked worst for health and education and health, while Alaska was worst for quality of life (though it came in fourth-best economy).
The best states overall? The top state was Massachusetts, followed by Idaho, New Jersey, Wisconsin, Minnesota, Florida, New Hampshire, Utah, New York and Pennsylvania.
Are you living in the right state for you?
While each state has its pros and cons, determining if you live in the right one depends on various factors, including WalletHub’s five key buckets. But it also depends on your life stage and future goals. A family with young kids has different needs (like a good public school system) than retirees (like access to health care).
It’s also important to consider the trade-offs you’ll have to make.
“A location with low housing costs may require long commutes that eat into a household’s budget (and consume substantial time) or may lack key public services like quality education or reliable public safety,” Krista E. Paulsen, associate professor in the School of Public Service, Urban Studies and Community Development with Boise State University, told WalletHub.
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Or, a dream job may not seem so dreamy if you have to move to a state where the cost of living is significantly higher but your salary isn’t.
Another consideration is a state’s “happiness” score, based on factors such as job security, adult depression and weather. Another WalletHub study to determine where Americans have the best combination of good economic, emotional, physical and social health found that Hawaii is the happiest state in the nation. Residents reported the highest levels of life satisfaction and the lowest adult depression rates. It also has one of the lowest unemployment rates in the U.S.
As for New Mexico? It ranked 46th on the happiness list.
Rankings can be helpful, but “there is no ranking system that is best for everyone,” Norm Miller, Ernest W. Hahn chair of real estate finance and emeritus at the University of San Diego’s Knauss School of Business, tells WalletHub.
“If you are a surfer, then Hawaii and San Diego will be heaven. If you are a skier then Denver and Salt Lake City might [reign] supreme.”
While low taxes may help to attract new residents, those residents should also consider how policymakers tackle big issues like educational quality and public safety.
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
