Cost of Living in Mexico – An Essential Guide

3.9K

Retirement is something you really have to take into consideration and with the very low cost of living in Mexico these days it is no wonder that a lot of Canadians, Americans and Europeans are relocating here. But how cheap is it exactly to live in Mexico? Is it as affordable as they make it out to be?

Understanding the Differences

It is true that Mexico had hit a financial crisis during the mid 1990’s but this has since changed. Over the years the government has altered its focus and has re-established Mexico as one of the predominant nations in South America. As a matter of fact the country now ranks as the 12^th biggest economy in the entire world. This generally places a lot of the costs in the same range as one would find in the United States, Canada, and most European nations.

So, if the prices are generally the same does it mean that living in the US and living in Mexico hits the same expenses? The answer is a little of both yes and no. It depends mostly on what you are after. If you are intent on living on less than $30,000 a year then yes, you can enjoy a comfortable life in Mexico. Most meals in the country cost only half of what they would cost in the US so in the long run you can save a lot of money.

The cost of utility bills is where the cost of living in Mexico becomes incredibly affordable. Water is surprisingly very low, with the usual prices found in the US cut almost completely in half. A twenty-liter/five gallon of purified water will only cost you about $2 to even as low as $1 and a bi-monthly water bill will only cost about $10 or less. Electricity is just the same. In the US, every kilowatt-hour costs about 12 cents but in Mexico it costs about 5 cents.

Lower Real Estate Investment Costs

When it comes to real estate prices, Mexico is quite competitive too. You can find properties that usually cost $650,000 in the US to go down to just about $280,000 to $400,000 in Mexico. If you are to buy a house that usually costs $200,000 in the US, expect it to be at least 30% less in Mexico. This is certainly a great alternative especially for those who are planning to either retire in the country or make some investments in real estate.

Indeed, the cost of living in Mexico is incredibly low when compared to other countries especially the United States. Imagine being able to cut your cost of living to half of what you are spending now. When you are planning to retire, you want to live as cheaply as possible and although this is almost impossible to do in the US, it is not necessarily the case when you retire in Mexico. It is easy to live a comfortable life in a paradise like Mexico without having to deal with a high cost of living.

How Much Does a House in Mexico Cost?

When it comes to real estate prices, Mexico is quite competitive too.

You can find properties that usually cost $650,000 in the US going down to just about $280,000 to $400,000 in Mexico. If you are to buy a house that usually costs $200,000 in the US, expect it to be at least 30% less in Mexico. This is certainly a great alternative, especially for those who are planning to either retire in the country or make some investments in real estate.

Average Home Price in Mexico

The average cost of a house in Mexico varies depending on the location. In popular tourist destinations like Cancun or Puerto Vallarta, prices are higher, but still lower than in the US. For instance, a three-bedroom house in these areas might cost around $150,000 to $300,000. In less touristy, more rural areas, prices can be significantly lower, often ranging from $50,000 to $100,000 for a similar property.

How Much Does a 3 Bedroom House Cost in Mexico?

Specifically, the cost of a three-bedroom house in Mexico can range widely. In major cities or coastal areas, a three-bedroom home might cost between $150,000 and $300,000. However, in smaller towns or rural regions, you might find a three-bedroom house for as low as $60,000 to $100,000. This makes Mexico an attractive option for those looking to retire on a budget while still enjoying a high quality of life.

Most expensive cities in Mexico

Mexico City:

As the capital and largest city, Mexico City is one of the most expensive places to live. Housing costs, dining, and entertainment can be quite high, especially in affluent neighborhoods like Polanco and Santa Fe. Expect to pay around $1,000 to $2,500 per month for a modern two-bedroom apartment in these areas.

Cancun:

Known for its beautiful beaches and tourism, Cancun is another pricey city. While it offers a fantastic lifestyle with plenty of amenities, the cost of living is higher compared to other parts of the country. Rent for a two-bedroom apartment in the city center can range from $800 to $1,500 per month.

Monterrey:

This industrial and business hub in northern Mexico has a high cost of living due to its economic significance. Housing and utilities can be more expensive, with monthly rents for a two-bedroom apartment in desirable areas ranging from $900 to $1,800.

Guadalajara:

As a major cultural and economic center, Guadalajara also ranks high in living costs. Rent for a two-bedroom apartment in upscale neighborhoods can range from $700 to $1,500 per month.

The Least Expensive Cities in Mexico

Puebla:

Known for its rich history and colonial architecture, Puebla offers a lower cost of living compared to major metropolitan areas. You can find a two-bedroom apartment for as low as $300 to $600 per month.

Merida:

This charming city on the Yucatan Peninsula is one of the most affordable places to live in Mexico. Rent for a two-bedroom apartment in a good area ranges from $400 to $700 per month, making it an attractive option for retirees and expats.

San Cristobal de las Casas:

Located in the highlands of Chiapas, San Cristobal is known for its vibrant culture and low cost of living. Housing is very affordable, with two-bedroom apartments available for $200 to $500 per month.

Aguascalientes:

This small city offers a relaxed lifestyle and low living costs. Rent for a two-bedroom apartment ranges from $250 to $500 per month, making it a great option for those looking to stretch their retirement savings.