Cabo San Lucas vs Mérida
Cost of living comparison for expats considering Cabo San Lucas or Mérida, Mexico.
Based on a typical expat lifestyle
Mérida is 28% cheaper than Cabo San Lucas
Monthly savings
$602
Mexico
Cabo San Lucas
$2,137
$37,398
Mexico
Mérida
$1,535
$26,863
Cheaper option
Category Breakdown
Housing (Rent)
Utilities
Groceries
Dining Out
Transportation
Lifestyle & Entertainment
Healthcare
Phone & Subscriptions
Based on a typical expat lifestyle: 1BR furnished apartment in mid-range neighborhood, mix of cooking/eating out, rideshare transportation, moderate entertainment, basic health insurance.
City Insights
Cabo San Lucas
Cabo San Lucas operates on two pricing tracks: tourist-facing Airbnb rates average $9,448/month, while Spanish-language listings and Facebook groups reveal the same units for $1,000-1,500 with 6-12 month leases—a 75% discount for those willing to do the legwork. The water crisis is real: some neighborhoods go 15-20 days without municipal supply, requiring cisterna storage and pipa (water truck) deliveries at $15-750 per fill. Summer electricity can shock newcomers—heavy AC usage triggers DAC (high consumption) tier rates that essentially double your bill. The geographic isolation of Baja means groceries cost 30-50% more than mainland Mexico. Healthcare is excellent (Hospital H+ rated 'up to American standards') but Saint Luke's Hospital has US State Department warnings for predatory billing.
Mérida
Mérida offers exceptional value—couples can live comfortably on $2,200-2,800/month with good housing, regular dining, and healthcare. The critical catch: summer heat means electricity for AC can dominate your budget. A single bimonthly AC bill can exceed $260 during April-May heatwaves. Market shopping at Lucas de Gálvez yields 20-40% savings over supermarkets. The 'gringo tax' on English-language rental listings runs 50-200%—search Inmuebles24 in Spanish and walk neighborhoods for 'Se Renta' signs. Costco membership is just $25/year vs $65 in the US. Centro street parking is free. Healthcare delivers 50-80% savings: Star Médica Mérida ranked #1 in Southern Region, hip replacements $3,850 vs $30,000+ US. US State Department rates Yucatan Level 1—equivalent to Japan, Iceland, New Zealand.
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These estimates use a typical expat profile. Adjust housing, dining, and lifestyle preferences to match your actual situation.
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