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

Category
Cabo San Lucas
Mérida
Difference

Housing (Rent)

$1,150
$633
-45%

Utilities

$178
$209
+17%

Groceries

$280
$175
-37%

Dining Out

$60
$54
-10%

Transportation

$120
$150
+25%

Lifestyle & Entertainment

$204
$204

Healthcare

$100
$65
-35%

Phone & Subscriptions

$45
$45
Monthly Total
$2,137
$1,535
-28%

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.

Customize This Comparison

These estimates use a typical expat profile. Adjust housing, dining, and lifestyle preferences to match your actual situation.

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