Mexico is a gorgeous place to visit, so it’s no wonder that a lot of people have the dream to settle in Mexico. But what is the real cost of living in Mexico?
Compared to other countries, it’s a relatively affordable place to live. Of course, that depends on where you’re coming from.
As long as you have a steady stream of income, you shouldn’t have to worry too much about making ends meet. If you’re considering making the move to Mexico, you’ve come to the right place!
To prepare yourself, read on and learn about the cost of living in this beautiful country.
If you’re thinking about moving to and living in Mexico, one of the first things you’ll need to know is how much it will cost to live in Mexico. Understanding the cost of living in another country is essential for planning your move. So much depends on your needs, your lifestyle, and whether you rent or buy your home. Even though it’s cheaper to live in Mexico than in other areas of North America, some people still spend as much or more than they do back in the U.S. or Europe. Mexico is a large country. Where you live in Mexico will impact the cost as well. There are big cities, rural areas, popular beach towns, and lots of tourist destinations. Research a particular area you are interested in before making a decision about the whole country.
Mexico City, the capital of Mexico, is one of Latin America’s most important international business centers and financial hubs. According to the most recent data, the city and its surrounding metropolitan area are home to about 21 million people, making it the largest urban agglomeration in Latin America.
Mexico City is ranked as the 25th largest city in the world and was responsible for more than $411 billion in GDP. It also serves as Mexico’s education capital with dozens of universities and colleges across the city, headlined by one of the top Spanish-language universities in the world, the National Autonomous University of Mexico.
This is all to say that Mexico City is a dynamic place to live, with all kinds of opportunities for work, study and play. Whether you are considering a move to Mexico City for business, school or retirement, the city almost certainly has a place for you. From low-cost living to urban luxury, Mexico City delivers all the options you need to maintain a comfortable life with any type of budget.
To prepare yourself, read on and learn about the cost of living in this beautiful country.
KEY TAKEAWAYS
While the cost of living in Mexico City is higher than the cost of living elsewhere in Mexico, it is still lower than the average U.S. cost of living.
Even average shoppers that prioritize eating at home can budget less than $200 a month for groceries.
If you’re moving to Mexico City to look for work, budget around $800 per month for expenses while seeking a job.
A student who is willing to share an apartment with other students can live comfortably for $750 per month.
Public transportation, including rail and taxis, are inexpensive and plentiful in Mexico City.
Eating in Mexico City
Grocery stores, bakeries, and markets are located everywhere in Mexico City, making it easy to keep your pantry stocked and your refrigerator full. Prices are low for most food products in most neighborhoods. The expatriate magazine International Living suggests that most people who regularly cook their meals at home should have no trouble meeting a $200 grocery budget per person. Frugal shoppers can eat well on much less. Grocery items are anywhere from 10 to 130 percent lower in Mexico than in other countries. This is mostly because a lot of products are grown there and don’t need to be imported. Living in Mexico gives you greater access to smaller markets and vendors that are often cheaper than going to a big-name grocery store. If you’re willing to eat as the Mexicans do at the plentiful little stalls that serve tasty and inexpensive food, you can eat out all the time for the same or less than what it costs to cook at home.
Mexico City offers dining options for virtually any taste and any budget. At the low end, a simple but hearty meal at a busy neighborhood restaurant or food court costs about $5. You can pay even less for fast, delicious food once you know where the best street-side food carts are located around your neighborhood. Mexico City is well-known as a must-visit location for international street food aficionados. At a mid-range restaurant, a three-course dinner for two people costs about $30, excluding beverages. Beyond the middle range, the sky’s the limit. Mexico City boasts world-renowned restaurants serving traditional and modern Mexican cuisine. Italian, Japanese, French and other national cuisines are also well represented in the city.
Mexico City Transportation
Public transportation options in Mexico City include a rail transit system known as the metro, city buses and minibusses known as peseros. Most fares for local transport are less than $0.40. Taxis ply the streets continuously. Fares start at about $0.50 plus $0.50 per mile. Other regular living expenses include personal hygiene products, household cleaning products, home decorating items, and clothing. If you opt for international brands, prices are likely to be in line with prices in the U.S. You can save quite a lot of money if you are willing to buy local-brand products instead. A frugal shopper should be able to manage on $100 per month in this category. Public transportation is almost 200 percent more in the U.S. than in Mexico. Gas prices tend to be cheaper too, and even if you’re living in a smaller town, there are a lot of public transportation options such as commuter vans and buses. Housing is also less expensive by approximately 200 percent as well. Take a look at the recent data compiled by Numbeo, an excellent detailed cost-of-living comparison between Mexico and the U.S. to see the comparisons. Of course, this depends on where in Mexico you live, as there are inexpensive and very expensive areas around the whole country. Unlike countries such as France and the United States, getting around Mexico is rather inexpensive. There are a variety of transportation options, and they’re all quite affordable.
If you plan to drive, the average car will cost you $15,000 USD, and you can expect to pay approximately $0.95 for a gallon of gas! A monthly train pass averages around $23, while a taxi trip with little or no traffic will run you about $5 each way.
Mexico City is packed with entertainment options, including movie theaters, museums, and other cultural attractions, as well as nightclubs and the like. Most prices in this category are not substantially lower than prices in the U.S.
Monthly Student Budget Needs
A student living in an affordable one-bedroom apartment can live comfortably on a budget of $900 per month, not including school books, tuition or other related expenses. By joining two other students in an affordable three-bedroom apartment and sharing rent and utility expenses, a student can cut her budget down to at least $750 per month.
This budget includes about $100 for basic utilities, internet service, and cell phone service; $200 for groceries; $90 for personal expenses and $30 for public transportation. The remaining $170 is available for healthcare expenses, dining out and weekend entertainment. Any leftover money can go into an emergency fund for unexpected expenses.
Monthly Job Hunter Budget Needs
Someone who has come to Mexico City to find a job probably needs at least $800 per month while looking for work. This is based on a cost of $310 for a one-bedroom apartment in an outlying area of town. This is an average price, so it should be possible to find a cheaper apartment. If accommodation near the city center is necessary, several secure hostels with dormitory-style rooms for budget travelers are located in the downtown area for around $10 per night.
This budget also includes about $100 for utilities, internet service, and cell phone service; $200 for groceries; $120 for personal expenses and incidental costs associated with job hunting; and $70 for transportation, including regular taxi rides for job-hunting purposes.
Monthly Professional Worker Budget Needs
A middle-income professional can live a very comfortable life for $2,000 per month, not including transportation to work or other work expenses. This budget includes $1,100 for a centrally located three-bedroom apartment.
Accommodations in a high-demand neighborhood or a luxury residential building, for example, could add substantially to this budget line. Utilities are included at $125; groceries at $200; personal and incidental expenses at $150; and semi-regular taxi travel at $50. The remaining $375 is available for health insurance and other health care expenses, as well as some regular dining out at nicer restaurants.
Monthly Retiree Budget Needs
While Mexico City is not often mentioned among the top retirement destinations in Mexico, it is a good, affordable option. A retiree in Mexico City should be able to live very comfortably for under $1,000. This budget includes $310 for a nice one-bedroom apartment outside the city center; $200 for groceries; $100 for utilities, Internet and cell phone service; $100 for personal expenses; and $30 for public transportation. The remaining $260 is available for health insurance, dining out and entertainment.
The cheaper cost of living is a key reason more people are finding it tempting to move to Mexico. If you are thinking of making an international move, it’s helpful to review your current lifestyle budget and then try to calculate what a budget living abroad would look like. Remember to consider international flights, if coming back to the U.S. is something you will need to regularly do. Connecting with ex-pats living in the areas you are considering is a helpful resource. They can provide comparable lifestyle budgets and will have knowledge of the area and overall costs.
Everyone seems to agree: the quality of your life improves when you move to Mexico. And a huge part of that is the lower cost of living you’ll enjoy. Goods and services cost less…so you can afford the kinds of luxuries only the wealthy enjoy in the U.S.—like a maid, a cook, and a gardener. You can find bargain real estate—whether you rent or buy—so your housing costs are drastically reduced. And you can also get high-quality medical care for a fraction of the price back home—including insurance.
In Mexico you have the good fortune of giving up very little when you make your move. You’re heading to a near neighbor where you can get internet, cable TV, and all the other comforts you’re used to in a modern country that still pulses with a vibrant traditional culture. You get the best of both worlds—and you’ll pay much less too.
In general, a typical retired couple can expect to live comfortably in Mexico on about $2,500 a month, all in. This includes a nice home, plenty of dinners out, entertainment, travel, and help around the house.
You can buy a house for $200,000—or less. You can employ a maid for about $4 an hour and a gardener for $5 an hour. Pamper yourself with a manicure, pedicure, and haircut…and pay less than $50. Get an hour-long massage on the beach—or in a spa—for $20. Enjoy a top-shelf margarita for $3, with a view of the water to go along with it.
For a small home, you can expect your annual property taxes to come to no more than $200. Your electricity bill will likely cost between $25 to $50 a month (unless you use air-conditioning a lot), gas is about $25 a month, cable TV and high-speed internet (usually bundled together) about $40 a month, and basic telephone service about $20. You can eat out at a nice restaurant for $15 per person, or grab a quick lunch at a local cocina económica for $4 to $7, not to mention a savory taco for just 50 cents. At the grocery store expect to pay $3 for a whole chicken, $2 for fresh caught fish, $2 for a pound of avocados, and 50 cents per pound for tomatoes. It’s cheaper to eat fresh in Mexico—and it allows you to easily adopt a healthier diet too.
After all this you should make a plan to move to Mexico because it provides you everything that you wants in your life.
