Mexico

Cost of Living in 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.

Monthly Total

$1,428

$24,990

Housing (1BR Mid-range)

$679

Daily Spend (ex. rent)

$25

Based on a typical expat lifestyle: 1BR furnished apartment, mix of cooking/eating out, rideshare transportation, moderate entertainment. Last updated: 1/15/2025.

Monthly Cost Breakdown

Housing (Rent)

1BR furnished apartment in mid-range neighborhood

$679

$11,883

Utilities

Electric, water, gas, and internet

$116

$2,030

Groceries

Groceries from supermarkets

$182

$3,185

Dining Out

Mix of casual restaurants, ~12 meals/month

$60

$1,050

Transportation

Rideshare (Uber/Didi), ~30 rides/month

$83

$1,453

Lifestyle & Entertainment

Entertainment, occasional cleaning service

$187

$3,273

Healthcare

Basic private health insurance

$75

$1,313

Phone & Subscriptions

Phone plan and streaming subscriptions

$47

$823

Monthly Total

$1,428

$24,990

Living in Oaxaca City

Oaxaca City is Mexico's cultural and culinary heart—the birthplace of mole, mezcal, and some of the country's most vibrant indigenous traditions. A single person can live comfortably on $1,200-1,500 USD monthly, while a frugal lifestyle is achievable at $750-900. Costs run 20-28% lower than comparable expat destinations like San Miguel de Allende.

Housing Reality

Day-to-Day Costs

Utilities & Infrastructure

Healthcare

Transportation

The Trade-offs

Budget Tiers

Best For

Destination Guide

Complete Guide to Living in Oaxaca

World-class indigenous cuisine, living Zapotec and Mixtec cultures, and costs 20-28% lower than comparable expat destinations

FoodiesCulture EnthusiastsBudget TravelersArtists
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Frequently Asked Questions

How much does it cost to live in Oaxaca City?▼
Oaxaca offers exceptional value—20-28% cheaper than San Miguel de Allende. A comfortable lifestyle runs $1,300-1,800/month including nice apartment in Jalatlaco (8,000-12,000 pesos), eating out frequently, coworking access, and weekend exploration. Lean budgets of $750-900 are achievable with basic housing outside Centro (4,000-6,000 pesos), cooking mostly, and walking everywhere. Luxury living at $3,000-5,000+/month gets colonial homes with courtyards, domestic help, fine dining, and monthly coast trips.
Is Oaxaca City good for digital nomads?▼
Excellent. The city has embraced remote workers with strong coworking options: Co404 (coliving + coworking, fiber internet, day pass ~200 pesos), Convivio (fastest WiFi in city, 1,750 pesos/month), and Céntrico Cowork (two locations). The timezone (Central) works well for US-based remote work. Internet speeds reach 15-20 Mbps reliably to 200+ Mbps with fiber. The expat community (5,000+) skews younger and more creative than Lake Chapala or San Miguel. Main downsides: limited flight options, occasional protest disruptions, and Spanish is essential for integration.
What's the weather like in Oaxaca?▼
Near-perfect year-round. At 5,080-5,240ft elevation, average temperature is 63-65°F (17-18°C) with 311 sunny days annually. Daytime highs reach 75-85°F, dropping to 48-55°F at night. Rainy season (June-September) brings predictable afternoon showers for 1-2 hours, then often clears. Winter nights require a jacket. You won't need AC or heating—a major cost advantage over Mérida's brutal humidity. Compared to alternatives: warmer than San Miguel, cooler and drier than Mérida, cleaner air than Mexico City.
Is Oaxaca safe for foreigners?▼
Yes—US State Department rates Oaxaca Level 2 ('Exercise Increased Caution'), same as Cancún and Mexico City. Crime statistics place Oaxaca City below Phoenix, Honolulu, and Denver for overall crime rates. The main concerns are: teacher's union protests (can block highways and airport, typically May-June), petty theft in crowded markets, and home break-ins requiring basic security. For women, Oaxaca ranks #11 nationally for solo female travelers. For LGBTQ+, it's one of Mexico's most welcoming states—same-sex marriage legal since 2019. Earthquake preparedness is essential (download SkyAlert app).
What about the water crisis in Oaxaca?▼
This is the most serious infrastructure concern. The public authority supplies only 33% of required water capacity. In 2024, state water wells recorded their lowest-ever levels. Some neighborhoods receive municipal water only once every 42 days during dry season. Water prices surged 35-50% in 2024. Causes include climate change, 77% tourism growth since 2020, aging infrastructure losing 40% to leaks, and mezcal production. Practically: most homes have rooftop tinacos and cisterns. Budget for pipa (water truck) delivery at 800-1,000 pesos per 10,000 liters. Conservation isn't optional—it's essential and ethical.
Is Spanish essential in Oaxaca?▼
Yes, more so than any comparable expat destination. English works in tourist restaurants and some hotels but fails in markets, government offices, banking, and neighborhood life. Those unwilling to learn Spanish will struggle with integration and pay the 30-100% 'gringo tax' on everything from rentals to vegetables. Multiple Spanish schools serve the community: Instituto Cultural Oaxaca (founded 1984), International House Oaxaca (DELE prep), La Guarida Escuela Cooperativa (cooperatively-run, queer-inclusive). Group classes run $180-300/week; private lessons $15-25/hour.
What neighborhoods should I consider in Oaxaca?▼
Centro Histórico: Highest rents (12,000-18,000 pesos) but walkable to everything—expect noise from restaurants and fireworks. Jalatlaco: Named Mexico's first 'Barrio Mágico' in 2023, 10-minute walk to Centro, digital nomad favorite (12,000-20,000 pesos). Xochimilco: Founded 1486, better value (10,000-15,000 pesos), authentic residential feel with 78% homeownership. San Felipe del Agua: Tranquility, gardens, mountain views (12,000-35,000 pesos) but car required. Reforma: Balance of accessibility and value (10,000-15,000 pesos). La Noria/Trinidad: Most affordable (4,000-7,000 pesos budget).
Why doesn't Uber work in Oaxaca?▼
Uber is blocked throughout Oaxaca state by taxi unions—this includes the city and the coast (Puerto Escondido, Huatulco). DiDi functions but with limitations: it connects you with local taxi drivers (you get a regular taxi with upfront pricing), cannot pick up from the airport, and has trouble finding smaller addresses. Prices run similar to or slightly below hailing a taxi directly. Taxis run 40-60 pesos ($2.30-3.50) within Centro—always negotiate price before entering. Colectivos (shared vans) cost just 10 pesos ($0.57) per ride.

Compare Oaxaca City to Other Cities

See how Oaxaca City stacks up against other popular expat destinations in Mexico.

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