Is it cheaper to live in Mexico than the US?

The phrase “Is Mexico more affordable than the United States” is typical among people who want to retire, digital nomads, or those who think about moving abroad with their family. The impact of the cost of living crisis in the United States makes many people choose Mexico – a country that is known for its low prices and high quality. The US has been a popular spot for Americans to migrate, but the standard of living and the lower price in Mexico are the major forces that are pulling a lot of people who are not satisfied with the American lifestyle anymore, said Robert Nelson, CEO of Explatform, a company that specializes in market research and product development. However, a lot of people are still hesitant to make the decision. According to him, the comparative quality of life, expense categories for goods, as well as illumination to the arguments of the pros and cons are the elements that allow one to cull."

Through this all-in guide, one will get to see the real differences in costs, read the major expense categories, and grab some useful insights for individuals who are in the process of weighing the pies and cons of moving to Mexico...

Comparing the Cost of Living: Mexico vs. the United States

Overall Cost Differences

There are a number of modern studies and cost–of–living indexes that present evidence of Mexico being at the level of overall cost up to almost a half cheaper than the same on the wealth side in the States. In fact, if the rent is not taken into the account, true expenses which are daily living costs only are about 44.9% lower in Mexico than in the US in general. In case, rent is added to daily expenditures, the difference becomes even more significant - the daily living costs in Mexico are 51.2% less than in the US. Furthermore, home rental fees are the pre–dominant component of the overall comparative rate because in a place like Mexico, they are 64% lower than in the US.

Monthly Expenses: Real-World Examples

Single Person: Living alone in Mexico usually costs the average of $9822 per month, whereas in America, a similar lifestyle is very likely to cost more than $2,400.

Couple: Living together, many couples in Mexico can easily spend even under $2,000 for a month, all inclusive.

Family of Four: The estimated cost of living for a family of four in Mexico is around $2,375, and in most US cities, there are very few where it is not less than $5,000.

Housing and Rent

Housing is the major cost factor that saves money. In Mexico, a typical one-room apartment rent in the center of a city is $563 per month on average while the same apartment in America may cost you more than double and even three times more than that. The outskirts of Mexican cities are even cheaper, with some one-bedroom apartments that can be as low as $329 per month.

For those who would like to make a purchase, the average price per square meter in the suburbs of Mexico is around $1,368, which is much less compared to the US suburbs. Nevertheless, one thing that should be taken into account is that the mortgage interest rates in the US are cheaper than those in Mexico.

Utilities and Services

Even utility bills (electricity, water, gas, internet) are way lower in Mexico. An example of the utility payments for an apartment with only one bedroom in a month comes to $35 for electricity, $30 for water, and $21 for internet. Another way through which expats are able to get household help like a cleaner for very little money is by hiring. At times, the charges are even a fraction of what the US charges!

Food and Groceries

Cost of food is also a major factor through which Mexico is able to pass on the affordable writing level to the people. The two main areas where there's savings are groceries meaning the food people eat from home, and food purchased from restaurants.

The food is much cheaper in both the grocery stores and the restaurants, with fresh fruits, vegetables, meats, and local goods always at 30-50% discount compared to the prices of the US. Dining out at the restaurants is more affectionate in Mexico, most people can still afford this form of entertainment and as a result, they can achieve their desired comfort and a lot of social gatherings will surely never miss their list in the new exciting life which they will be finally living.

Healthcare

The healthcare of Mexico definitely remains at good standards but the prices are still relatively cheap. For example, a private health insurance policy for an expat can be priced at $1,000-2,000 per year.

It is also a common practice for expats to enroll with the public health (IMSS) system of Mexico also for their health services, and some even of them do this because healthcare service in Mexico can cost less prior to the treatment than when they are in their home country. Also, the tariffs for regular doctor visits, dental care, and purchase of drugs over the counter are all pretty low in Mexico compared to those charged in the United States of America.

Transportation

In most cities in Mexico, public transportation is the main mode of moving around for very many people as this is a convenient and cheaper option. The cost for month on public transport is around $20-40 and it is even cheaper than in the US where owning a car is more expensive, you pay for your insurance every month and also the fuel price is also higher in the US than it is in Mexico.

Quality of Life Considerations

Of course, money is not the only thing that attracts so many expats to Mexico. The quality of life is another important attraction. In such cases, what many expats find about Mexico is that it is so much simpler, easier, and (despite coming with lower salaries) more enjoyable financially that instead of saving thousands of dollars today by doing housework themselves, they will begin to pay others to do these tasks so as to get rid of the hassle.

Realizing this, many expats in Mexico know where to eat regularly and even afford to travel because these situations are unlikely to have happened when they were in the USA and on a similar budget. Not only do the cities and towns of Mexico offer different levels of temperature and weather but also plenty of opportunities are open for.

What to Consider Before Moving to Mexico

Moving to Mexico is not just about cutting down on spending, it is about accepting and getting used to a different culture. The savings are monumental, but one should take into account the differences in infrastructure, bureaucracy as well as cultural norms. There are services that include high-speed internet and certain imported products which when are more expensive or unreliable in certain areas. Furthermore, getting used to the slower pace of life and acquiring the Spanish language are among the things that are part and parcel of transitioning.

If moving to Mexico is on the agenda, the first steps would be to investigate those cities which you have in mind to be your new home, also utilize the opportunity of a visit in person, and finally, meet the local expat communities to receive firsthand information about the cost aspect of the new lifestyle you are about to get.

Is It Really Cheaper?

The evidence is clear as daylight: it is way less expensive to be staying in Mexico than it is to live in the US. All costs including rent, food, healthcare, and other daily expenses, are much lower than in the US, be able to enjoy a nice life in Mexico spending just about the same cost as in the USA. For those who are retired, the nomadic individuals, and also those having families, all are better off in Mexico thanks to the same quality of life yet lower living standards.

Living in Mexico can, on one side, help one to experience a more frugal and fulfilling life yet one should be mindful of the intricacies of the transition. Whether you are a seeker of a bustling city, a serene beach town, or an old colonial village, any savings you make will likely make the money and effort of moving worthwhile.