Cabo San Lucas vs Oaxaca City
Cost of living comparison for expats considering Cabo San Lucas or Oaxaca City, Mexico.
Based on a typical expat lifestyle
Oaxaca City is 33% cheaper than Cabo San Lucas
Monthly savings
$709
Mexico
Cabo San Lucas
$2,137
$37,398
Mexico
Oaxaca City
$1,428
$24,990
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.
Oaxaca City
Oaxaca delivers possibly the best food-to-cost ratio in Mexico—tlayudas for $4-6, tacos de tasajo at Central de Abastos for just $0.17 each. Mezcal runs $8-15/bottle vs $60+ in the US. The valley climate at 5,080ft means no AC needed—utility bills stay minimal year-round. The rental market is two-tiered: English listings charge 30-100% premiums over Spanish sources. Average rent citywide is $890, but smart seekers using Inmuebles24 pay far less. CRITICAL: Severe water crisis—public authority supplies only 33% of capacity. Some neighborhoods get municipal water only once every 42 days; budget for pipa delivery (800-1,000 pesos/10,000L). Uber does NOT operate here (taxi unions blocked it). DiDi works with limitations. Rising popularity pushes Centro rents up, but Xochimilco and outer Reforma offer 20-40% savings.
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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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