Mexico has become a popular destination for foreigners, retirees, and digital nomads looking for a more affordable lifestyle while enjoying a vibrant culture and diverse landscapes. One of the main reasons for this popularity is the cost of living, which can be significantly lower than in countries like the U.S., Canada or parts of Europe. However, the cost of living in Mexico varies widely depending on your lifestyle choices and the specific location you choose to settle in. 

In this article, we’ll provide a general overview of what to expect in terms of the types of expenses when living in Mexico. While it’s difficult to pin down exact numbers – since costs can fluctuate based on your personal lifestyle, family size and the region you live in – this article should help you understand the factors that affect your budget and point you toward resources for more detailed information. 

Factors That Affect the Cost of Living 

Location: This is one of the biggest factors that impacts the cost of living in Mexico. The country offers everything from bustling cities to tranquil beach towns. The cost of rent, utilities, food, and services can vary significantly depending on where you live. Some different areas to consider: 

• • Mexico City: As the capital and largest city, Mexico City is often the most expensive place to live in Mexico. While you can still live affordably compared to cities like New York or San Francisco, expect higher prices for rent, dining out and entertainment. 
  • Beach towns: Places like Playa del Carmen, Tulum and Puerto Vallarta are popular with foreigners but tend to be pricier due to their proximity to the ocean and their status as world-renowned tourist destinations. 
  • Colonial cities: Cities like San Miguel de Allende, Mérida and Guanajuato offer a mix of affordability and cultural richness. These areas can be great for those looking for a balance between cost and quality of life. 
  • Small towns and rural Areas: The cost of living in small towns or rural areas is often much lower than in major cities or tourist hotspots. If you prefer a more laid-back lifestyle, you can live very comfortably on a modest budget. 

Housing and rent: This is often the largest expense for anyone moving to Mexico. Rent varies depending on the type of accommodation and location. In general, rents have been steadily rising across the entire country given Mexico’s increasing popularity among foreigners. Some different types of housing: 

• • Urban apartments: In cities like Mexico City, Monterrey or Guadalajara, rent for an apartment can be significantly higher than in smaller towns. 
  • Beachfront properties: If you’re looking for a place near the ocean, you may end up paying more, but you can still find affordable options if you’re flexible with your location. 
  • Buying property: Many foreigners choose to buy homes in Mexico, and in general, property prices are lower than in the U.S. or Canada. However, popular destinations can be pricier. Keep in mind that property ownership comes with additional expenses such as property taxes, maintenance and home insurance. 

Utilities: These are generally affordable in Mexico, but they can vary depending on the region and the type of property you live in. Here’s a breakdown of common utilities: 

• • Electricity: The cost of electricity can vary widely depending on your usage. In coastal regions where air conditioning is a necessity, bills can be significantly higher. In general, electricity is the most expensive utility and can be significantly more than in the U.S. or Canada, for example. Electricity in Mexico is run by the federal government and is known as Comisión Federal de Electricidad (CFE). 
  • Water and gas: Water and gas are relatively inexpensive. Most homes use gas for cooking and heating water, and the cost is relatively low compared to other countries. Though you can find centralized gas service (e.g., condo buildings), the majority of Mexican homes have their own individual gas supply in the way of stationary tanks or cylinders, which can be exchanged. 
  • Internet and cable: High-speed internet is available in most cities and towns, and the cost is comparable, if not less, to what you’d expect pay in the U.S. or Canada. However, the speed and reliability may vary depending on the area. However, Starlink has been a game-changer for many in under-served areas looking for more options. 

Groceries and dining out: One of the perks of living in Mexico is the affordable cost of food, especially if you shop at local markets (mercados) and buy fresh produce (fruterías). Dining out is also affordable, with local eateries (fondas) offering daily meals at a fraction of the cost of other restaurants. Some food and grocery options: 

• • Local markets: Shopping at local markets for fruits, vegetables (e.g., mercados, abastos, tianguis, etc.), and meats (e.g., carnicerías) is a great way to save money. The quality is often high and you’ll find a wide variety of fresh produce. 
  • Supermarkets: For items like packaged goods, imported foods, or household products, you’ll find many big-box supermarket chains like La Comer, Chedraui, Soriana and Walmart. Prices for imported goods can be significantly higher, so it’s best to buy local whenever possible. 
  • Dining out: You can eat affordably at local restaurants, especially if you stick to traditional Mexican fare. However, dining at high-end or tourist-centric restaurants can be more expensive, particularly in major cities and tourist areas. 

Transportation: This is quite affordable in Mexico, and there are several options to suit your needs: 

• • Public transportation: In cities like Mexico City, public transportation (buses, metros, and trains) is inexpensive and widely available. Taxis and ride-sharing services like Uber are also affordable. 
  • Owning a car: If you prefer to drive, fuel and maintenance costs are generally lower than in the U.S. or Canada, though this will depend on the type of car you own. Permanently importing a foreign vehicle can be costly, so many foreigners opt to buy a car locally. 
  • Intercity travel: If you plan to travel within Mexico, long-distance buses are nice, affordable, and comfortable. Domestic flights can also be inexpensive, especially if you book in advance. 

Healthcare: This is one of the primary reasons why so many foreigners choose to move to Mexico. The country offers both public and private healthcare systems, and the quality of care is generally high in urban areas. 

• • Public healthcare: The public healthcare system, Instituto Mexicano del Seguro Social (IMSS) and IMSS-Bienestar, is available to both locals and legal residents, but wait times can be long and not all treatments may be available. 
  • Private healthcare: Many foreigners opt for private healthcare, which is still much more affordable than in the U.S. or Canada. Private health insurance is widely available and medical and dental procedures as well as prescriptions cost significantly less.

Entertainment and leisure: Mexico offers a rich cultural life, with plenty of entertainment options that are affordable. From concerts and festivals to museums and historical sites, there’s always something to do. 

• • Entertainment: Going to the movies, concerts or theaters is often much cheaper than in the U.S. or Europe. You can also find free events, festivals and cultural activities in most cities. 
  • Outdoor activities: Mexico is known for its natural beauty, and outdoor activities like hiking, swimming, and visiting national parks are accessible and affordable. 

Helpful Online Resources 

When moving to Mexico, it’s essential to do your research based on the specific area you plan to live in. Fortunately, there are many online communities and resources where you can connect with other foreigners, ask questions, and get advice about the cost of living in various regions. Here are some resources: 

• • Facebook groups: There are countless numbers of Facebook groups geared towards foreigners in Mexico, where members frequently share up-to-date information on living costs, housing, healthcare and more. These groups are an excellent way to get real-time insights from people already living in different parts of the country. Since group members are often highly engaged, you can find quick responses to questions about budgeting, recommended services, or specific regional price differences. Popular groups are often organized by location or topic, allowing you to narrow your focus based on your future destination in Mexico. 
  • City-specific websites and forums: For more detailed cost-of-living information tailored to a specific city, you can check out city-specific forums (e.g., Reddit) and websites (e.g., PVEverything.com, Chapala.com, etc.). These sites often have dedicated sections for foreigners and locals alike, where they discuss everything from rental prices and utility bills to transportation costs and lifestyle expectations. Some forums even feature regular updates from long-term residents, making them an invaluable resource for understanding regional nuances. These platforms also allow you to ask direct questions to the community, giving you the chance to clarify any specific concerns about the local economy or living expenses in your chosen area. 
  • Numbeo: Numbeo is a global database that allows you to compare the cost of living between cities in Mexico and other countries. It includes user-contributed data on rent, groceries, dining, and other living expenses. The platform’s interactive tools allow you to analyze price trends over time and calculate estimated monthly expenses for different cities, giving you a clear picture of what to expect financially. Additionally, Numbeo provides comparisons of various factors such as crime rates, healthcare quality, and pollution levels, helping you weigh the overall quality of life alongside living costs. 
  • Blogs and YouTube channels: Many foreigners share their personal experiences on blogs and YouTube channels. These can provide you with valuable insights into day-to-day costs and budgeting tips. Often, bloggers or vloggers focus on specific regions, giving a detailed breakdown of living expenses, cultural differences and ways to save money. Their content is typically more personalized, offering firsthand accounts of challenges they faced and solutions they found for managing finances. Watching videos or reading blog posts can also help you visualize the lifestyle and typical costs associated with living in different areas of Mexico, providing a more relatable perspective than statistical data alone. 

Conclusion 

The cost of living in Mexico can vary dramatically depending on your lifestyle, location, and personal preferences. In general, Mexico offers a more affordable cost of living than many countries, making it an attractive option for foreigners and retirees. By understanding the factors that impact your expenses – such as housing, utilities, food, and healthcare – you can plan a budget that suits your needs. 

For detailed, region-specific information, make use of online resources like Facebook groups, city-specific websites and cost-of-living comparison sites like Numbeo. With proper planning and research, you’ll find that living in Mexico can provide a comfortable, fulfilling lifestyle at a fraction of the cost compared to other countries. 

Please feel free to leave us a comment below, if you wish to share any cost of living information that you believe may be beneficial to others. We would love to hear from you!