Cost of Living

The following figures within typical lifestyle areas will give a much more realistic estimate of your actual cost to live comfortably in Mexico. And, don’t forget inflation: in Mexico it often runs 15% or more a year.

Housing: 50% of whatever you’re paying now in most U.S. markets. If you rent a small house or apartment for $800 a month, $400 should get you an equivalent place — or better — in Mexico. For this price, however, you shouldn’t expect a lavish beachfront condo or a swimming pool in a gated community. In areas that don’t see many tourists or foreign residents — which is most of Mexico — your housing costs might be as much as 25% less than what you are currently paying.

Food: Eating out has become an important form of entertainment, so a conservative “guesstimate” would suggest that you’ll trim about 25% from your current food bill. On the other hand, diligent do-it-yourself cooks and tortilla-lovers will probably wind up with at least a 50% reduction in average food costs.

Alcohol: Most liquor costs less in Mexico, but it also goes down easier. Cerveza costs about the same as premium U.S. beer and middle-shelf Mexican wines and hard liquor are 50% (or less).

Heating: Negligible unless you’ll be in the highlands above 5,000’ in winter. If so, better add $10-20 per winter month for gas and electric space heaters.

Utilities: Mexicans gripe that la luz (lights, power) is expensive, but by U.S. standards it is not. Figure an average of $30 a month or $50 if you must have air-conditioning. Gas for cooking and hot water will cost $10 to $30 a month. Water may be free or just a few dollars a month. Mexico is perennially short on water so if you have a green lawn fetish, get over it.

Telephone: Basic service is affordable, but long distance international calls can be a painful drain on your checkbook. Call your long-distance phone company and get their rates to Mexico. If they seem high, expect to pay even more for international calls made from Mexico. Plan on using email and a fax machine if you make many calls or need to keep tabs on a business. Internet connections: $20 to $30 a month is average, not including set-up fees. Email at pay-for-messages services run $1-$2 per message and internet cafe computer use is $3 -$6 an hour.

Laundry: About double whatever it costs at your local laundromat.

Hired help: $2 or $3 an hour is probably “generous” for occasional housecleaning and gardening.

Visits Home: In your projected cost of living in Mexico, include the cost of periodic round-trip travel to visit your family and former home.