The largest city in New Mexico is ALBUQUERQUE, which has 11 letters. ALBUQUERQUE is the 32nd most populous city in the United States and the largest city in the state of New Mexico. It is located in the central part of the state along the Rio Grande river and is home to the University of New Mexico. The city was founded in 1706 as a Spanish colonial outpost and has since grown to become the cultural and economic hub of the state.