This article takes a look at the 15 best places to retire in Mexico on a budget of $2,000 a month. If you wish to skip our detailed analysis on the allure of Mexico for expats and retirees, you may go to 5 Best Places to Retire in Mexico on a Budget of $2000 a Month.
The Allure of Mexico for Expats and Retirees
Home to more than 2 million expats from around the world, Mexico stands out as a popular destination. According to the US Department of State, an estimated 1.6 million US citizens have chosen the country as their place of residence. Beyond its appeal to international residents, Mexico is also a prime choice for foreign investors, particularly those eyeing the real estate market. Foreign expats, especially retirees who wish to make Mexico their permanent abode, consider it more cost-effective to either rent or own property here.
This is especially true for American citizens, many of whom have already given up on the idea of owning a home back in the States. According to Redfin Corporation (NASDAQ:RDFN), the median price of a home in America as of October 2023 is $413,504. Based on these figures, Redfin Corporation (NASDAQ:RDFN) report highlights that a typical American household earns $40,000 less than the income needed to own a medium-sized house.
“Buyers–particularly first-timers–who are committed to getting into a home now should think outside the box. Consider a condo or townhouse, which are less expensive than a single-family home, and/or consider moving to a more affordable part of the country, or a more affordable suburb.”
-Redfin Corporation (NASDAQ:RDFN) Economics Research Lead Chen Zhao.
Forbes, aligning with Chen Zhao, also advocates for considering affordable living but specifically points to countries like Mexico. According to Mexico Business News, houses acquired in Mexico through a mortgage loan averaged prices of over MX$1.6 million (US$93,800) in Q2 2023, up 11.5% from Q2 2022. Within the metropolitan areas, the Valley of Mexico witnessed an increase of 10.9%, Guadalajara by 12.5%, and Monterrey by 11.3%. Despite the rising prices, housing in Mexico remains significantly more affordable for US expats compared to the United States. Foreigners, especially retirees, can consider buying a home in this country and spending a comfortable retirement here.
Spending one’s golden years in a different country can be a grand experience. In particular, there are many advantages of living in Mexico as an expat retiree. From the pleasant year-round weather to the large expat community and reasonable cost of living, life is simple and relaxed . In America, a typical retiree spends $4,345 on average, whereas the cost of living in Mexico for a single person can vary between $600 to $2,000 a month.
Many expats report living comfortably in many areas of Mexico for $1,500 a month as well. The country can be pretty easy to live in. Expats in Mexico feel pretty much “at home”, thanks to the large expat community. American chains such as Walmart Inc. (NYSE:WMT) and Costco Wholesale Corporation (NASDAQ:COST) can also be found here in the country. There is McDonald’s Corporation (NYSE:MCD), Burger King, Del Taco, and Baja Fresh, to name a few. All in all, expat retirees report having the time of their lives.
However, retiring overseas isn’t as simple as it may seem. According to The Charles Schwab Corporation (NYSE:SCHW), a good deal of preparation can help expats ensure a smooth transition.
“I advise clients to get the ball rolling as early as possible, as there are several big items you’ll need to check off your list to ensure a smooth transition.”
-George Lee, CFP®, CWS®, director at The Charles Schwab Corporation (NYSE:SCHW) Asset Management.
To retire in Mexico, expats can begin by applying for a temporary resident visa. For visa approval, they need to provide a sufficient source of income outside of Mexico. The minimum monthly requirement is estimated to be $1,620. Those granted a temporary visa can live in the country for four years. In case they wish to live longer, a permanent visa needs to be applied for. Once a resident, the first concern of an expat is finances. Institutions such as The Charles Schwab Corporation (NYSE:SCHW) make it easier for expats to conduct transactions outside the States.
Potential expats should note that there are a few disadvantages to living in Mexico as well. First, retirees are better off living in the country if they learn Spanish. Even though there are many places where almost every other local is bilingual, learning the language can help get by more easily. Second, foreigners must keep a lookout for scams. From taxi scams to timeshare and even ATM skimming, a lot can happen if one is not careful. Lastly, even though the country is significantly cheaper than the US, there are lot of imported items and luxuries that cost at least 30% more than what one would find in the States.
Simon Dannhauer/Shutterstock.com
Methodology
To compile the list of best places to retire in Mexico on a budget of $2,000 a month, we began by searching for the best places on expat forums, Reddit, Quora, and websites such as International Living, Mexico Relocation Guide, etc. Next, we filtered out the places where living on a budget of $2,000 a month isn’t possible.
To determine the cost of living, we relied on Nomads List cost of living data, as well as used recent data based on actual expat experiences. The average monthly rents are discussed for a one-bedroom apartment in the city/town center, while the monthly cost of living is discussed for an individual retiree. Finally, a consensus approach was used to select the places, with one point awarded to each place each time it was recommended by a source. Scores were summed up and places were ranked in ascending order from the lowest to the highest scores.
For places with same scores, tie-breaking has been done based on cost of living, with the place with the lower cost of living ranking higher on our list.
Here are the best places to retire in Mexico on a budget of $2,000 a month:
15. Ensenada
Insider Monkey Score: 5
Average Monthly Rent: $520
Average Monthly Cost of Living: $1,500
Ensenada offers the perfect beach-town vibe to retirees seeking a pleasant yet fulfilling retirement. Located on the Baja California Peninsula, the city boasts stunning coastal views, beaches, and even a nearby wine country. The city, also known as “Old Mexico”, is home to thousands of US expats. Renowned for its distinctive international atmosphere, retirees will find downtown adorned with a diverse array of traditional Mexican restaurants, as well as an abundance of bars and souvenir shops.
14. Puebla
Insider Monkey Score: 5
Average Monthly Rent: $341
Average Monthly Cost of Living: $1,010
One of the most affordable places to retire in Mexico is Puebla. This city in east-central Mexico is revered for its rich cultural history and architectural style. The climate here is moderate with low humidity, making it pleasant to live in. Expats love to stroll through the narrow Puebla buildings, exploring local markets and experiencing traditional cuisine in the process. Healthcare is high-quality here, and many doctors have received their training from the US.
13. Tulum
Insider Monkey Score: 6
Average Monthly Rent: $1,000
Average Monthly Cost of Living: $2,000
If you wish to live in Tulum, it’s best to buy a bicycle. This is the best advice you can get from expats living in the town because traffic can be bad here. Other than that, Tulum is home to some of the most striking beaches in the Mexican Caribbean, offering retirees a relaxed Bohemian vibe to relish. It is also renowned for fostering a health and yoga culture, providing retirees with the opportunity to embrace and enjoy a vibrant and wellness-oriented lifestyle. In essence, it is one of the best places to retire in Mexico on a budget of $2,000 a month.
12. Santiago de Querétaro
Insider Monkey Score: 7
Average Monthly Rent: $581
Average Monthly Cost of Living: $1,183
Rich history, wineries, and waterfalls are three things that describe Santiago de Querétaro best. History buffs love it for its Spanish colonial architecture, notable Baroque buildings, and also the ochre San Francisco church. Querétaro has a well-preserved historic center brimming with cafes, restaurants, and many markets. There are modern neighborhoods available on the outskirts that have American-style homes. Many expats choose to live in these. Healthcare facilities are also reputable, and retirees will find it nice to retire here.
11. Puerto Morelos
Insider Monkey Score: 8
Average Monthly Rent: $500
Average Monthly Cost of Living: $1,600
Another one of the best places to retire in Mexico on a budget of $2,000 a month (and even save some to save and splurge) is Puerto Morelos. Retirees appreciate this town for its warm Caribbean sun, gentle breezes, and relaxed pace of life. Expats report healthcare to be both affordable and good quality. There is a diverse expatriate community to socialize with, an exquisite culinary scene, and plenty of marine activities for sea lovers. The Mesoamerican Barrier Reef, located close to this town, is the second-largest coral reef system in the world.
10. Huatulco
Insider Monkey Score: 9
Average Monthly Rent: $550
Average Monthly Cost of Living: $2,000
If you’re thinking of moving to Huatulco for good, it’s best to let the winters pass and get yourself a good rental deal in the summer. This advice by expats is gold, considering Huatulco is a popular tourist destination where foreigners come to escape the cold. Warm weather, reasonable cost of living, and diverse marine life make it one of the best places to retire in Mexico.
9. Oaxaca
Insider Monkey Score: 11
Average Monthly Rent: $504
Average Monthly Cost of Living: $1,080
One of the safest and cheapest states to retire in Mexico is Oaxaca. Oaxaca City, in particular, offers retirees the best of both worlds — an abundance of big-city amenities combined with the inviting charm of a small-town atmosphere. This historic jewel is pretty affordable for retirees, and an individual retiree can live on $1,080 a month. However, the only condition is that you must know Spanish to live here, otherwise getting by would be hard.
8. Cancún
Insider Monkey Score: 12
Average Monthly Rent: $705
Average Monthly Cost of Living: $1,397
American expats find Cancun a great place to retire to, appreciating its pleasant climate and affordable cost of living. The “modern city on the Caribbean Sea” sits along the shores of the world’s second-largest reef system, offering a prime gateway to savor the ultimate Caribbean experience. There are modern healthcare facilities available, so retirees can live here with peace of mind. The international community adds to the appeal of retiring here.
7. Puerto Vallarta
Insider Monkey Score: 13
Average Monthly Rent: $860
Average Monthly Cost of Living: $1,996
Puerto Vallarta is the ultimate beach destination that retirees can choose as their home. Almost every other local is bilingual here, so expats have an easy time mingling with the community. Moreover, this city is known to have it all: beach, jungle, and modern-city life. There are many beaches to relax in, but the most famous one is Playa Los Muertos. There are plenty of bars, restaurants, theaters, dance clubs, and other entertainment venues to enjoy as well.
6. Playa del Carmen
Insider Monkey Score: 14
Average Monthly Rent: $989
Average Monthly Cost of Living: $1,848
Known for its climate, first-class amenities, and affordable living; Playa del Carmen is more than just a world-class destination for tourists. There are lots of restaurants, plenty of water-based activities, and many theaters and malls to explore. Retirees love this place for its bustling nightlife, local charm, and modern amenities.
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Disclosure: none. 15 Best Places to Retire in Mexico on a Budget of $2000 a Month is originally published on Insider Monkey.