How much will it cost me to live in Mexico?
This is the most frequently asked question from people considering a move to Mexico. The answer to this question depends upon your lifestyle choices and expectations…
The basic cost of living in Mexico is lower than that of the US, Canada and Europe; particularly for items such as fruits, vegetables and other food staples; baked goods, and other miscellaneous grocery items.
Local and national pubic transportation is generally lower in cost than the US/CA and much lower than Europe. Competition has been introduced in the domestic airline market and low-cost airlines are beginning to make a significant difference to domestic air-travel fares in Mexico, which were relatively expensive before additional airline companies began to operate.
Prices for electricity are relatively* high unless your monthly consumption remains below a certain level, in which case government subsidies can help keep your electric costs low.
Telephone service prices are being transformed in Mexico after legal reforms brought in during 2014 and early 2015 have made calling from landlines less expensive than it has ever been before in Mexico.
Piped water to your home is relatively inexpensive, but not always potable (drinkable). Decades of under-investment, combined with a widespread attitude of impertinence towards paying water bills has left Mexico’s mains water system in poor condition. As a result, most people purchase bottled water, often in 20 liter containers. Bottled water costs hundreds, if not thousands, of per cent more per liter when compared against the price of potable tap water in the US, Canada or Europe — but overall, it’s less expensive to pay for all your water needs here than it is in the US or Europe.
A growing range of items, especially some types of clothing, domestic appliances, audio/visual equipment, technology, e.g. Smart Phones computers, computer software, and cameras, are more expensive than identical items sold in the USA. Cars cost slightly more in Mexico than equivalent models in the US.
Gasoline and diesel prices are set by the Mexican government and for this reason prices don’t fluctuate as much as those in the USA and Europe when oil prices go up or down on international markets. This year for the first time, gasoline stations are allowed to sell gasoline at prices lower than the maximum level set by the government.
Rents in Mexico can be equal to rents found equivalent-sized US towns or cities if the place is popular or fashionable; and particularly in places within easy each of the US border and/or frequented by foreign visitors and expats. In less popular (or less well known / off the beaten track) towns and cities, you may find good quality accommodation at far lower rents that you would pay for the equivalent space in the US.
Mexico has a centralized economy, that is, most of the country’s economic activity revolves around Mexico City and environs. This makes the capital a relatively expensive place to live compared with most of Mexico.
Wages and Salaries in Mexico City are higher than those in the provinces.
The 2015 Guide to the Cost of Living in Mexico helps you work out a living budget, whether you plan to live here full or part time, come to work, study, take a sabbatical or retire. The guide will enable you to calculate likely living costs in Mexico based on your individual lifestyle choices.
The pricing data used to produce the guide are fully up-to-date with the latest prices and cost trends in Mexico. You can also compare last year’s prices with this year’s pricing data, and see how prices are changing in Mexico.
Learn more about the 2015 Guide to the Cost of Living in Mexico and download a copy of the guide today…
* Relative to local earnings.