Cost of Living Guide
Mexico Cost of Living: What Changes Most
Mexico offers significantly lower costs than the US, Canada, or Europe—but how low depends heavily on where you live and your lifestyle choices. The same budget that feels tight in Mexico City provides comfort in smaller cities. This guide covers what actually drives costs and where the biggest variations occur.
Last reviewed: January 2026
Research summary for planning purposes. Not legal, tax, or financial advice. Verify with official sources.
Who this is for
This guide may help if you:
- Expats evaluating Mexico for retirement or relocation
- Remote workers comparing cost of living across Mexican cities
- Those creating realistic budgets for different lifestyle levels
This may not be the right fit if you:
- Those seeking exact prices (these vary and change)
- Short-term tourists budgeting a vacation
- People looking for cheapest-possible survival budgets
Key tradeoffs
Important considerations that affect most people in this situation.
Location is the biggest variable
Mexico City, Monterrey, and tourist areas (Los Cabos, Cancún, Puerto Vallarta) are significantly more expensive than interior cities (Guadalajara, Mérida, Oaxaca, Guanajuato). The same quality of life can cost 40-60% more in premium locations. Where you live matters more than almost any other factor.
Housing drives the budget
Rent is typically 30-50% of an expat budget in Mexico. The range is enormous: from $300-500 USD/month for a decent apartment in smaller cities to $1,500-3,000+ USD for similar quality in Mexico City's desirable neighborhoods. Getting housing right (or wrong) makes or breaks your budget.
Lifestyle choices compound quickly
Eating local food, using public transit, and avoiding tourist-oriented businesses keeps costs low. Imported goods, cars, expat-focused services, and US-style consumption patterns dramatically increase costs. Two expats in the same city can spend 2-3x differently based on choices.
Housing: the biggest variable
Housing costs vary 5x or more between different cities and neighborhoods. This is where budget reality is set.
- Mexico City (premium areas: Roma, Condesa, Polanco) — $1,200-2,500 USD/month for a nice 1-2 bedroom apartment. These are expat-heavy areas with corresponding prices
- Mexico City (middle-class areas: Coyoacán, Narvarte, Del Valle) — $600-1,200 USD/month. Good quality, less "expat bubble"
- Guadalajara — $500-1,000 USD/month for quality apartments in good areas. Mexico's second city with lower costs
- Mérida — $400-800 USD/month. Popular with expats, still affordable but rising
- San Miguel de Allende — $800-1,500 USD/month. Small town but premium expat pricing
- Smaller cities (Oaxaca, Guanajuato, Querétaro) — $300-700 USD/month for comfortable apartments
- Beach towns vary wildly — $500-600 USD in local areas, $1,500+ in tourist zones
Food and groceries
Food costs are very manageable if you adapt to local patterns. Importing your home country diet is expensive.
- Local groceries — $150-250 USD/month eating mostly Mexican foods purchased at mercados and local supermarkets
- Mixed groceries (some imports) — $250-400 USD/month including imported cheeses, international brands, specialty items
- Supermarket variation — Walmart, Soriana, Chedraui offer standard prices. La Comer, City Market, and specialty stores cost more
- Eating out (local) — $3-8 USD for street food and local restaurants. Fondas (lunch counters) offer full meals for $4-6 USD
- Eating out (mid-range) — $15-30 USD per person at sit-down restaurants
- Eating out (upscale) — $40-80+ USD per person at fine dining, comparable to US prices
- Coffee culture — espresso drinks $2-4 USD at local cafes, $4-6 USD at Starbucks-style chains
Transportation
Mexico has good public transit in cities and affordable rideshare. Cars are expensive to own and operate.
- Public transit — Mexico City metro is $0.25 USD per ride. Buses in most cities $0.30-0.80 USD
- Uber/DiDi — widely available. Short trips $2-4 USD, cross-city trips $8-15 USD. Much cheaper than US equivalent
- Taxis — meter taxis and sitio (stand) taxis available. Slightly more than Uber typically
- Car ownership — not necessary in most cities. If you want one: used cars hold value, gas is $4-5 USD/gallon, insurance $500-1,000 USD/year, parking is often difficult/expensive in cities
- Intercity buses — excellent long-distance bus network. First-class buses (ETN, Primera Plus) are comfortable and affordable. Mexico City to Guadalajara ~$50-70 USD
- Domestic flights — budget airlines (Volaris, VivaAerobus) offer cheap fares if booked ahead. $30-100 USD for domestic flights
Utilities and services
Utilities are generally inexpensive. Internet quality has improved significantly in recent years.
- Electricity (CFE) — $20-80 USD/month depending on AC usage. Mexico uses tiered pricing; heavy AC users pay more per unit. Summer in hot regions gets expensive
- Gas — $20-40 USD/month for cooking and hot water. Delivered by truck in most areas (stationary tanks) or piped in newer developments
- Water — often included in rent or $10-20 USD/month
- Internet — $25-50 USD/month for fiber or good cable internet. Telmex, Totalplay, Izzi are main providers. Quality varies by area
- Mobile phone — $15-30 USD/month for plans with good data. Telcel has best coverage, AT&T and Movistar are alternatives
- Domestic help — housekeepers, gardeners very affordable ($50-100 USD/week for regular cleaning). Common even for middle-class households
Healthcare costs
Healthcare is a significant budget item for expats, but still much cheaper than the US.
- Private insurance — $100-400 USD/month depending on age, coverage level, and pre-existing conditions
- IMSS voluntary — ~$50-100 USD/month for public system access (alternative for catastrophic coverage)
- Doctor visits (cash pay) — $30-80 USD for specialists
- Medications — significantly cheaper than US. Many available without prescription. Budget $20-100 USD/month depending on needs
- Dental — routine cleaning $30-50 USD, major work 50-70% cheaper than US
- Overall — budget $150-400 USD/month for healthcare depending on insurance choices and health status
Budget examples
These are rough monthly budgets for different lifestyles. Adjust based on your priorities and location.
- Budget-conscious single (smaller city) — $1,000-1,500 USD/month. Modest apartment, local food, public transit, minimal eating out
- Comfortable single (mid-tier city) — $1,500-2,500 USD/month. Nice apartment in good area, mix of cooking and restaurants, occasional Uber, private healthcare
- Comfortable couple (mid-tier city) — $2,000-3,500 USD/month. Two-bedroom in desirable area, regular dining out, activities, full healthcare coverage
- Premium lifestyle (Mexico City/premium areas) — $3,500-5,000+ USD/month. Upscale neighborhood, restaurants, car or frequent Uber, premium services
- Family of four (comfortable) — $3,000-5,000 USD/month depending heavily on school choices (private school adds $500-1,500/month per child)
Next steps
Continue your research with these related guides.
Mexico Country Guide
Overview of setting up in Mexico, including how costs fit the overall picture.
Mexico Residency Paths
Financial requirements for residency and how they relate to budgeting.
Healthcare in Mexico
Detailed healthcare costs and insurance options.
Cost of Living Hub
General cost of living topics for expats.
Sources & references
Official Sources
- INEGI (Instituto Nacional de Estadística) – Official Mexican statistics on prices and costs
- Banco de México – Inflation and economic data
General References
- Numbeo, Expatistan – Crowdsourced cost comparisons (use as rough guides)
- Expat community documentation – Real-world cost experiences in Mexico
Information gathered from these sources as of January 2026. Requirements and procedures may change.