Santa Fe has a reputation for being impossibly expensive if you're not a millionaire. That's not exactly true. The price of homes is skewed up by the very expensive ones that are often the second or third home of the very rich. However, there is a distinct lack of rental housing, which is a problem.
There are condos and houses well within walking distance of the Plaza, which is essentially our downtown. However, there are no grocery stores within walking distance.
I live on the south side, off airport road near Las Acequias Park. Look at Google maps to see. I can walk a quarter mile and take the bus downtown. The bus frequency does leave a bit to be desired, but this is a city of about 75,000, so it's understandable. There is a senior van, which I've never made use of, but you could certainly look into it.
I moved here nearly 11 years ago after a divorce. I moved here from Overland Park, KS, which is considered a low cost of living part of the country, and the apartment I rented cost me what I'd have expected to pay back there for something comparable. A bit less than a year later I bought this place, which is a one story, two bedroom, two bath, three skylights unit, attached on both sides. No association. For the first nine years, according to Zillow, its value had either declined a little or remained exactly what I'd paid. Recently the supposed value has shot up, but since no homes in my little neighborhood have sold for the past several years, I'm not sure I should believe them. Someone needs to sell to test the price.
Albuquerque, less than an hour south, does have much less expensive housing and may be a better choice for you. I don't know that city well enough to know the neighborhoods, but I'm sure plenty of them are walkable.
Here's what I'd suggest: look at Zillow and see what home prices are. Then pay a visit to this state. Spend time in both cities. Do basic touristing. Even if you decide this isn't the one for you, it will be a great vacation. There's a ton of things to see and do all over the state, and you won't regret the visit.
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