Mexico is a popular destination for expats and retirees. Having lived here for a while, I can confidently vouch for it as a place to call home. The cost of living in Mexico in 2025 is low compared to many Western countries. I can access good healthcare, housing options, entertainment, and food for a fraction of what I spent when living in the United States. I enjoy a great work-life balance and can work remotely.
At Remitly, we want to make sure you’re well informed ahead of moving to a new place. In this guide, we provide transparent, up-to-date information on the cost of living in Mexico in 2025, so you can feel prepared for your new start.
Cost of housing in Mexico in 2025
Despite an inflation rate of 3.93% as of April 2025, Mexico remains affordable in 2025, providing a high quality of life for a much lower price than in many Western countries. A family of four spends an average of $2,402 USD monthly living in Mexico, according to Numbeo. A single person can live comfortably on a budget of $664 USD.
Looking at the latest data can help you confidently plan for your future if you’re hoping to move to Mexico. Below we’ll take a look at the costs of essentials like housing, food and healthcare, as well as consider different budgets and lifestyles—from urban centres like Mexico City to quieter beach towns or countryside living.
Rent and housing costs
Mexico has a housing problem in 2025一there’s more demand than supply for housing due to issues like expensive materials, high interest rates, and land scarcity. For these reasons, most houses in the Mexican real estate market today aren’t newly built.
With more people moving to Mexico, there’s increasing competition for housing and prices have been increasing. Despite these issues, you’ll find that buying and renting property in Mexico is still affordable in 2025.
Housing options include:
- Departamentos (apartments): Commonly found in Guadalajara and Mexico City. Students, single people, young families, and couples generally prefer them.
- Room rentals: Best for students. You rent a room in a large house and share a bathroom and kitchen with your housemates.
- Short-term stays: Generally used by tourists for short visits, but also people travelling for business.
- Casas (houses): These are found in suburban and rural areas and are ideal for families.
The prices differ between major cities (e.g., Mexico City and Guadalajara) and smaller towns or beach areas. You’ll tend to pay more if your house is closer to the city or town center. Beachfront properties also come at a premium. That said, a beach-front villa in Mexico is way cheaper than one in the United States.
The table below breaks down the numbers to give you a sense of how different areas vary. You’ll notice that affordable places to live in Mexico are outside major cities and towns.
| City/town | Average rent in USD for one bedroom apartment |
| Mexico City | 770–1,280 |
| Tulum | 517 |
| Cancun | 622 |
| Valladolid | 363 |
| Playa del Carmen | 770–1,130 |
| Puerto Vallarta | 600 |
| Riviera Maya | 510 |
| Oaxaca | 515–720 |
| Guadalajara | 620–925 |
| Mérida | 515–770 |
Utility bills are separate. Expect to pay between $77 USD and $155 USD monthly for electricity, gas, water, and internet.
Best Mexican cities for expats in 2025
There are many affordable places to live in Mexico, each with its unique attractions. Let’s take a look at a few popular cities, their lifestyle offerings, and costs.
| City/town | Lifestyle offering | Average living expenses in USD for a single person |
| Mexico City | Multicultural
World-class amenities Great urban experience High-quality work and investment opportunities Diverse food culture |
730 |
| Puerto Vallarta | Beaches
Vibrant nightlife Beautiful restaurants and bars |
1500 |
| San Miguel de Allende | Great history, architecture and art
Cultural festivals |
1681 |
| Lake Chapala | Great sunny weather, affordable lifestyle and healthcare, and relaxing lakeside shores | 2000 |
| Huatulco | Keen on eco-conscious practices
Relaxed lifestyle Small-town feel Close-knit expat community |
1000 |
| Monterrey | Economic hub for workers in the steel industry
Fast pace of life Large population |
1967 |
| Oaxaca | Vibrant culture
Great food Friendly people |
1300 |
| Guadalajara | Strong Catholic state
Rich in history with several museums |
634 |
| Ensenada | Great climate
Ocean views Delicious food scene |
1163 |
| Mérida | Fun cultural celebrations Great foodPlenty of day trips for the weekends |
678 |
Groceries and restaurants
Mexico exports a lot of food, focussing on the production of high-value export crops like avocados, tomatoes, and berries. Despite this, the country is food secure because it produces more food than the population needs and imports corn, wheat, soy, beef, pork, processed foods, carbonated beverages, and various types of dairy.
Groceries are inexpensive. According to Numbeo, these are the current prices of common grocery items in May 2025.
- A liter of milk: $1.47 USD
- Loaf of bread (500 grams): $2.56 USD
- 1 kg of white rice: $1.70 USD
- 12 eggs: $2.37 USD
- 1 kg of tomatoes: $1.79 USD
- 1 kg of potatoes:$1.95 USD
- 1 kg of apples: $2.71 USD
- A bottle of wine: $10.40 USD
- Half a liter of domestic beer: $1.58 USD
- 0.33 liters of imported beer: $2.91 USD
Dining out is also economical compared to in the US. A three-course meal for two at a mid-range restaurant in Mexico City costs between $31 USD and $104 USD.
You’ll pay much less when you try Mexican street food, which is delicious and attracts tourists looking for authentic flavors.
Popular Mexican street food includes tacos, tortas, gorditas, chayote, elotes, esquites, tostadas, chicharrónes, tlacoyos, and birria. One tlacoyo, for example, costs $2 USD, and it’s practically a meal.
Consider shopping at these popular local markets and international stores.
Local markets
- Mercado de la Ciudadela.
- Mercado de San Juan.
- Mercado de Artesanías, Oaxaca.
- Mercado Roma.
- Mercado Benito Juárez.
- Mercado 28.
- Mercado de Artesanías La Ciudadela.
Retailers
- Bodega Aurrera
- Oxxo
- Soriana Híper
- Walmart (international)
Healthcare costs in Mexico
Most Mexican hospitals are good but their standards are lower than in the United States.
Immigrants can access healthcare in Mexico via the national healthcare scheme一Instituto Mexicano del Seguro Social (IMSS). It is a universal healthcare system. However, only Mexican citizens and permanent and temporary residents are eligible. A standard tourist visa, for example, doesn’t qualify you for the scheme.
All legal expats not covered by IMSS can access free medical care in public hospitals through the Instituto de Salud para el Bienestar (INSABI).
Alternatively, you can sign up for private insurance or employer-funded schemes to pay subsidized rates. There are also out-of-pocket bills, not covered by insurance.
Key things to note about Mexico’s healthcare for expats:
- Private health insurance costs an average of $1,700 USD annually. Factors like your age and health status affect the insurance premiums.
- Common out-of-pocket expenses include prescription eyewear, dental care, and non-emergency cosmetic procedures.
- Top private healthcare providers are ABC Medical Center (Mexico City), Médica Sur (Mexico City), and Christus Muguerza Hospital Alta Especialidad (Nuevo León).
- Major insurance providers for expats in Mexico are GNP, MetLife, Cigna, GeoBlue, and AXA.
- You’ll pay $20 USD on average to consult a doctor.
Transportation costs in Mexico
Expats living in Mexico love the extensive bus network because it connects cities to towns and rural areas efficiently, at an affordable price.
You can also travel by boat, train, bike, plane, subway, metro buses, trolleybuses, colectivos (mostly minivans), or taxi.
You can expect these prices on average:
| Mode of transport | Price (USD) |
| Flight (Domestic between Mexico City and Cancun) | $150 |
| Train aboard the Mayan Train (premier seats) | $1,174 (Cancun – Mérida)
$391 (Cancun – Tulum) |
| Boat | Private 4-hour boat trip $621 |
| Ferry | Playa del Carmen to Cozumel $92, exclusive of booking fees |
| Colectivo | $3 one way |
Owning a car works if you’re looking for convenience, comfort, flexibility, and independence. But these benefits do come at a cost. You’ll pay $1.21 USD per liter of gasoline (April 2025 price), between $1 USD and $70 USD per day for insurance costs, and between $520 and $780 USD annually to maintain a fairly used mid-sized car.
Utilities and internet expenses in Mexico
Utility expenses in Mexico will mainly cover electricity, gas, water, landline, mobile, internet, and postal couriers.
Prices as of May 2025 are:
- Residential electricity: $10.3 per KWh
- Domestic gas: $2.29 USD per USG
- Water: $26 USD to $52 USD monthly for communal systems, $26 USD monthly for mains-fed, and $52 USD per 10,000 litres by a delivery truck.
- Pay TV: Netflix $17 USD monthly
- Fixed-line communications: Monthly package fee including all telephone calls across Mexico and to most (but not all) countries globally, as well as unlimited high-speed internet starts at $21 USD. It can get as high as $52 USD, depending on your needs. To get the best prices, compare internet providers in your area. Telcel, AT&T Mexico, Movistar, and Altán Redes are the main mobile internet providers in Mexico.
Recreation and lifestyle activities in Mexico
I’ve found that with a slower pace of life and a close-knit community, I can enjoy low-cost recreational activities in Mexico. I recommend these activities (some of which are entirely free).
- Cycling
- Visiting museums like the Museo Nacional de Antropología
- Taking a walk on the main square (El Zócalo)
- Visiting Templo Mayor
- Watching plays and ballet at Palacio de Bellas Artes
- Seeing the Teotihuacán Pyramids
- Riding an ATV at the Maya Jungle
- Language exchange with a native Spanish speaker
You can also consider signing up at a gym near you. You’ll part with $76 USD monthly to get a gym membership in Mexico City’s business district.
You might also enjoy immersing yourself in Mexico’s culture. I’ve attended spectacular festivals like Dia De Los Muertos and holiday traditions like Kings Day and Las Posadas.
Some festivals like festival cultural del vino y el queso en parque naucalli are free of charge, while others like the Puerto Vallarta Bachata Festival cost $130 USD.
Tips for saving while living in Mexico
Although life in Mexico is generally more affordable than living in the United States, if you’re sending money back home to your family you’ll want to save as much as possible. Here are some tips to help you do so:
- Rent in a local neighborhood instead of the tourist or expat zones.
- Consider ride-sharing when using taxis.
- Use public transportation.
- Eat street food when dining out.
- Shop at local markets.
- Opt for free entertainment and leisure activities such as walking.
- Travel off-season.
- Negotiate your rent.
- Opt for affordable healthcare options.
- Look for the best rates when exchanging currency. You could try local exchange houses (Casas de Cambio).
FAQ
Is Mexico an affordable place to relocate to?
Yes, Mexico offers good quality life inexpensively. Rent and housing prices in Mexico are favorable, and grocery, healthcare, transportation, and utilities prices are affordable. There are also free entertainment options.
What are some easy ways to save money living in Mexico?
Consider living in a local neighborhood, negotiating your rent, exchanging currency at Casas de Cambio, traveling off-season, shopping at markets, and using public transportation to cut costs.
Will I need to pay for health insurance?
As a tourist, you will need insurance, however if you become a resident then you will be eligible for universal healthcare. Even as a resident, you might still consider paying for private insurance to guarantee the quality of care you receive.