Email & ShareOne of the most common questions we have been asked by readers of Yucatan Living is also one we have long hesitated to answer: What’s the cost of living in Yucatan? Our standard (and rather evasive) answer has been: “Well… it depends”. We are particularly surprised by those who ask us, “Can a person live on $4,000 dollars a month down there? Or $2,000 dollars?” Because the answer, of course, is “Yes, there are thousands, maybe millions, of Mexicans living here on much less.”
Unlike in the States and other developed counties where money talks and the consumer is king, Mexico and the Yucatan in particular, do not have homogenous economies. In so-called “developed” countries, most people have a wage-earning job, drive a car, shop at the mall, use a credit card, pay income taxes and share a common - if not equal - economic reality.
But the long and very special history of Mexico has produced a different economy here. Either through imposition or experimentation, Mexicans have incorporated, and to a varying extent maintained, economic systems inherited from Native America, Colonial Spain, the Napoleonic Empire, the Catholic Church, Capitalism, Socialism and Communism, just to mention the heavy hitters. There are whole communities in Mexico that still live off the land, like our great, great grandparents who settled the “wild west”. At the other extreme, the richest man in the world makes his home in Mexico. And almost every other conceivable economic arrangement is also found here.
While the trend is that more and more Yucatecos are joining what we call the “money economy”, most campesinos still prefer to bargain and barter, avoid banks and loans, and minimize formal payrolls and income taxes. While those in Gringolandia tend to pay top dollar for the “next big thing”, Yucatecos boast of finding el precio mas barato (the lowest price) for their last purchase.
When we first moved here, a gringa friend of ours had composed a little ditty entitled “You Paid Too Much!”. We don’t remember the song, but we remember and appreciate the sentiment: no matter what you tell someone you paid for something here, the reaction is almost universal… you paid too much! At first it was unnerving, causing us to walk around feeling like we had been duped at every turn. Gradually, we have gotten used to it and realize that this feeling is just the symptom of a mindset that is always looking for a bargain.
These and other significant economic and cultural differences mean that the cost of living in Yucatan (and much of Mexico) depends more on your lifestyle and personal financial decisions than they probably do in your own 
country. There are simply more options here. Many commodities can be found at very different prices depending on location, context, and quality. The Mexican economy is like eBay, a swap meet and a garage sale wrapped in a department store in a mall at Disneyland (we refer to Cancun). For example, you can watch the same Hollywood blockbuster in an old, art-deco theatre in downtown Merida for about $2.50 pesos that would cost you $8.50 lying in a barcalounger in a modern cineplex in northern Merida. Or you can go to a government-sponsored film festival at the Olimpo or Teatro Merida and pay $1.50 pesos to see an art film.
One important way to reduce costs is through immersion and assimilation. The more Yucateco you become, the less you’ll find yourself paying (and willing to pay) too much. It’s obvious to most of us who live here that speaking Spanish and adapting to local traditions will almost always guarantee finding a lower price or a lower-priced alternative. What’s not immediately obvious is how thrift becomes a way of life when it is supported by the culture that surrounds you. You can drive across town to Home Depot for that machete (yes, you might like one here), or you can walk to the corner hardware store and buy one for less. The choice is yours.
About the Mexican Peso
With only a few exceptions (real estate and lodging come to mind), you’ll be paying for everything in pesos. After the horrific peso devaluation of 1994, there have been important changes in Mexican finance, which includes a virtual peso “peg” to the U.S. dollar. Over the past six years at least, the Mexican peso has tracked the value of the dollar at an exchange rate of 11 pesos to one dollar, plus or minus half a peso. In the last few months of 2008, in response to the worldwide economic crisis, the exchange rate climbed to 13.5 pesos to the dollar, where it remains at this writing.
Unlike Europeans and Latin Americans, who are conditioned to think in multiple currencies, most norteamericanos have a difficult time understanding the value of anything not quoted in dollars. But it’s not that hard. Just divide the price in pesos by 10, and then give yourself a 25 percent discount. For example, something that costs $100 pesos costs $10 dollars minus 25%, or $7.50 dollars, mas o menos.
As a service to you, our reader, the rest of this article quotes most of the prices in pesos, so you can practice doing the math…
Housing
One of the more fundamental expenses is housing, and prices in Yucatan are particularly difficult to generalize. The cost of housing has increased over the last ten years just like everywhere else in the world, but from such a low value that there are still many locations that are affordable by North American or European standards. And the rise in prices was not caused by an over-abundance of loans, as most Mexicans own their homes outright. Mortgages are only now becoming available to the growing middle class.
A renovated colonial house in the centro historico of Merida that cost $150,000 dollars five years ago may now sell for as much as $350,000. Unrestored properties can still be found for well under $100,000 dollars. The center of Merida, along with the beach areas along the Gulf Coast, have appreciated the most. But there are numerous other safe and attractive neighborhoods in Merida, as well as smaller towns around Yucatan State, such as Cholul, Motul, Izamal and Valladolid. 
Fortunately for the real estate shopper, there are numerous agencies here with comprehensive websites where you can gain a broad view of the market. Just Google “Yucatan real estate” or “real estate in Merida Mexico” (when you have a lot of time). Don’t forget that all prices are negotiable.
Of course, another option is to rent, at least until you have some “on the ground” experience with life here and have shopped the real estate market to your heart’s content. Many foreigners do rent before they buy, but the variety of rental properties makes determining a price range almost as difficult to generalize as real estate. We have rented modest houses in the centro historico for as little as $200 dollars and as much as $500, but these were rented from locals by locals. A typical 2 bedroom rental downtown in the most desirable areas might go for $600 to $1000 USD per month, and vacation rentals, rented by the day or week, cost a lot more (Click on the "Vacation Rentals" topic on the right side of this page to see some of the local offerings).
If you’re not a local, you’ll be competing with tourists, foreign professionals and student travelers when you rent. Depending on the condition of the property and its location, you will likely pay more. This is especially true of restored colonial vacation rental houses. Unfortunately, these are the most frequently advertised on the Internet. The most affordable properties are advertised by painting En Renta on the façade. Finding a suitable and affordable rental property usually requires a visit to the area, and lengthy communication in Spanish with the owner. For the cost-conscious shopper, we recommend staying in one of the low-price hostels while shopping rental properties like a local.
Income and Value Added Tax
Very few people in Mexico pay income tax. Well, technically, nobody pays income tax. If you are employed at a company that pays salaries and reports earnings, the company withholds and pays your personal income tax for you. But the number of wage-earning jobs subject to income tax in Mexico is relatively few compared to the U.S. or Canada.
The majority of workers earn their income, in whole or in part, abajo de agua (literally “under water”, but it means under the table). These workers include private farmers, artisans, independent contractors and construction workers, small restaurants and other sole proprietors of small businesses. This practice is not illegal. In Mexico, you can choose to participate in a “gray” economy, without reporting any profit or loss to the government, or you can participate in the formal economy through serialized invoices called facturas, and report both profits and losses. Many businesses must operate in both economies, depending on the client. Ours is no exception.
To compensate for a lack of tax revenue from income, the Mexican Government imposes a rather steep national sales tax, or Value Added Tax, called Impuesto Valores Agregado in Spanish, which is abbreviated to IVA and pronounced ee-VAH (or ee-BAH by many). You are expected to pay IVA for everything you purchase except medicines, unprepared foods, water and other basic necessities of life.
However, there are many cases, depending on your lifestyle choices, where IVA is not added to the price of your purchase (referred to as mas IVA, or plus tax). For example, you can eat fast food, where IVA is added, or you can eat at a private cocina economica, where it is not. You can contract with a professional cleaning service for your housekeeping needs and pay IVA, or you can hire a free-lance housekeeper. You can buy a machete (you really should get one) at Home Depot mas IVA, or you can buy it at the Mercado, sin IVA. The choice, once again, is yours: WalMart or Chetumalito? Bit by bit, that 15% savings adds up.
Property Taxes
Your property’s value is determined by a state government agency called Catastral or Catastro (strangely, the same agency, two different names), and is based on the historic value of the property more than the (usually understated) last sale price. Every year, starting in January, you will receive a bill for property taxes, called a predial (pray-DEE-al). In most cases, you will be stunned to learn that this is profoundly less than you paid in your own country. For example, the Yucatan Living office, which is a two-bedroom, restored colonial in the centro, has a market value of over a million pesos. It has been appraised by Catastral at $212,000 pesos. We were billed $110 pesos for predial this year. And if we pay before March, there’s a discount!
Honestly, the property taxes are so low that we try to give back to the city whenever we can. Anyone who asks us for a donation or wants to sell us flowers on the street will get a few pesos from us… it’s our way of contributing to the life around us here.
Fidecomiso
As anyone who has shopped for real estate in Merida or along the coast has learned, we are in the so-called “restricted zone”, which means we foreigners can’t own the property directly, but must purchase it through a bank trust called a fidecomiso (FEE-day-co-MEE-so). These trusts charge a hefty annual maintenance charge. Just when you thought you were escaping the costs of property ownership: bang, the fidecomiso bill arrives.
Still, adding together the $4,500 to $6,500 peso charge for our bank trust along with the cost of the predial, the net expense is a tenth of what we paid in property taxes back in California.
After housing, most foreigners expect to pay for basic modern conveniences like water, garbage, gas, electricity, telephone, cable and Internet. The per-unit cost of your monthly utility bills are not negotiable, but the total cost is directly affected by lifestyle choices.
Water
The water supply is delivered by a company called Japay (HOP-eye). There really is no shortage of water in Merida, nor in most of Yucatan, so prices are low compared to the rest of North America. The least you’ll pay in the centro historico is $50 pesos per cubic meter for up to three cubic meters of water. One cubic meter is 164 gallons. An average toilet flush is about 2.5 gallons. A five-minute shower is roughly 13 gallons. A load of laundry in a modern washing machine runs between 30 and 40 gallons. The more water you use, the higher the price per cubic meter, as the table below illustrates.
|
Water Consumed (M3) |
Pesos per M3 |
|
4 – 10 |
$53.00 |
|
11 - 15 |
$59.00 |
|
16 - 20 |
$62.50 |
|
21 – 40 |
$63.83 |
|
41 – 60 |
$63.98 |
|
61 – 80 |
$64.66 |
To add to this complex billing structure, prices also vary depending on location. In the southern (less affluent) areas of Merida, prices per cubic meter start at $40 pesos, while in the northern (affluent) areas, they start at $52 pesos. There is also a higher rate for business locations. We are billed every other month and pay on average about $150 pesos. Yes, we take showers AND we use a washing machine.
Many Yucatecos who own swimming pools choose to drill their own well to fill them, as well as to irrigate their gardens. This probably made more sense back in the day when water was pumped using windmills, but not as much (as we will see) now that the pumps are electrical. It may again make more sense if you install wind or solar energy generators.
Garbage
We are familiar with two garbage collection companies in Merida: Servilimpia and Pamplona. Both charge only $17 pesos per month to collect your garbage. They have different collection days depending on your location. Where we live now, Servilimpia works Colonia San Sebastian on Tuesdays, Thursdays and Fridays. In the tourist areas of the centro historico, they collect whether you pay or not. Sometimes, they forget to stop by for some reason, but in general the service works.
Have something big or unwieldy you want to throw away? Put it outside. If it is at all valuable or reusable, chances are a neighbor or passerby will pick it up before the garbage truck even gets there. If your garbage requires more effort or ingenuity on the part of the garbage company to haul it away, you might find them banging on your door, even in the middle of the night. Tip them $10 or $20 pesos and they will be happy. If not, they’ll tell you how much they want.
In addition, you will occasionally see a group of men in orange vests, sporting brooms and rolling trashcans, making their way along the streets of Merida to pick up after those who toss candy wrappers and coke bottles from their cars or from the buses. We would be knee-deep in modern, brand name detritus if not for them. The discussion about stopping those people from tossing the candy wrappers in the first place is for another article.
Electricity
La Comision Federal de Electricidad (CFE) is the national electric company that supplies power to all of Mexico. Although they are a “World Class Company”, (as the slogan on their trucks remind us), they do not pretend to be affordable. Without a doubt, electricity is the most expensive utility in Yucatan.
We in Yucatan benefit from the previously mentioned socialist influences within the Mexican economic system by living in a region classified as 1C, which means that because we have an average summer temperature of 30o C (86o F), our electric bills are subsidized during the summer months of May through October. (Or, if you are a die-hard capitalist, you could say we are gouged the rest of the year.)
For a private residence in Merida, the three summertime electricity rates are:
Basic: $0.567 pesos up to 150 Kilowatt Hours (KW/Hr)
Intermediate: $0.668 pesos up to 600 KW/Hr
High: $2.255 pesos after 600 KW/Hr
During the rest of the year, the rates are:
Basic: $0.661 pesos up to 150 KW/Hr
Intermediate: $0.780 pesos up to 600 KW/Hr
High $ 2.350 pesos after 600 KW/Hr
For those who are not familiar with the term “KW/Hr”, it means kilowatt-hour, which is a thousand watts of electricity consumed in an hour. If you burn ten, 100-watt light bulbs for an hour, they consume one KW/Hr of electricity. Naturally, here in Yucatan, low-cost fluorescent bulbs (11 to 17 watts) have been widely adopted, not just to conserve electricity, but also because they survive power fluctuations caused by our lovely afternoon electrical storms better than standard incandescent bulbs.
How much electricity does your lifestyle consume? If you plan to live like most campesinos outside Merida, you do not own a refrigerator. If you want a cold drink or fresh eggs, you walk to the corner store, which serves as the community refrigerator. You don’t own a washing machine, either, preferring to wash your clothes by hand. You might own an electrical fan, but you certainly don’t own an air conditioner. You hang your hammock in a shady spot and let the breezes cool you off. Probably the only electrical appliances you own are a (rather loud) radio and a television, along with a few light bulbs (and maybe a string or two of Christmas lights, para La Virgen).
With the exception of a few ceiling fans, a small refrigerator and perhaps a washing machine, many working class Yucatecos living in Merida don’t consume much more than their campesino cousins, although a growing number own a DVD player and a battery charger for their cell phone.
We observe that the Yucatan middle-class owns an assortment of electrical appliances similar to most middle-class gringos, but they don’t have as many and they are not used as often. You won’t find a garbage disposal or dishwasher in most Yucatan kitchens, including ours. But the obvious socio-economic dividing line is air conditioning. The modern miracle that made Las Vegas possible and lures thousands of campesinos and working class Yucatecos to the malls every summer is what takes the biggest bite out of anyone’s electric bill.
Here at the Yucatan Living offices, we have two “mini-split” air conditioners that run throughout the business day. (Only for the comfort of our clients, of course.) It is not unusual for our bills to run $5,000 pesos each month. At home, we only have air conditioners in the bedrooms - a common practice among homeowners who chill electrically – and we try to avoid using them whenever possible.
We would guess that anyone with an average gringo lifestyle (and addiction to air conditioning) who lives in a restored colonial house in Merida’s historical center likely consumes an average of 1,500 KW/Hr of electricity every month, which means they’re paying approximately $2,400 pesos every month. The bill is delivered every other month, so expect to see double when it arrives.
Recently, the president of Mexico announced a 10-20% discount off electrical rates nation-wide as part of a fiscal stimulus program. If the legislation passes, it will be welcome news.
Propane
There are no natural gas mains running under the calles of Merida. Every home and office has some sort of propane tank on its roof or in a closet. The gas is delivered from a truck operated by one of several independent companies with names like Z-Gas, Delta Gas and Gas Peninsular. The price of propane has nearly doubled since we moved here in early 2002. That’s the bad news. The good news is that it’s still one of the least expensive utilities and one of the most efficient energy sources.
A typical three-bedroom colonial home has a 300-liter stationary tank on the roof. At a price of $5.48 pesos per liter, it costs $1,664 pesos to fill it. The gas heats our calentadores (water heaters), secadora (clothes dryer) and is used for cooking, although we often use the campesino method, where cooking is done on open wood fires or with charcoal. A tank lasts us five or six months, so we pay an average of about $330 pesos a month for gas.
Still, to save both gas and electricity, we also try to hang our clothes out to dry as much as possible, and only use the clothes dryer for rainy days. We disable our water heaters during the summer months, as well.
Transportation
Anyone who reads the financial press or studies Mexican history knows the entire oil industry is consolidated into a state-run institution called Pemex. The Mexican government nationalized the oil industry after the Revolution and sets the prices for gasoline at legislated intervals. Despite protestations and seductions from free-market advocates in Gringolandia, this native bit of socialism has been working out rather well for “We The Consumer”.
There are two grades of unleaded gasoline at the pump. Regular is called Magna and premium is called, well, Premium. A liter of Magna currently costs $7.05 pesos per liter. Premium costs $8.77. To convert to dollars per gallon, here’s the math:
(Pesos-per-liter times 3.7854) divided by pesos per dollar
Using an exchange rate of 13.5 pesos per dollar, the cost of unleaded regular gasoline is (drum roll, please) $1.97 a gallon. 
If that sounds like great news, then you probably spend a lot of time in your car. However, you don’t have to drive very much in Merida. Many who live in the centro find themselves walking more, and if you need to make a quick trip to the mall or the Mercado, you can always find a taxi, combi or bus to take you there. A bus ride to anywhere costs $5 pesos. A typical taxi ride costs about $25-30 pesos. And in many cases, what you need – groceries, prescription drugs, dry cleaning – can be delivered to your home at no additional cost.
Auto Insurance
It is your civil responsibility in Mexico to carry auto insurance. A policy to cover everything your vehicle does to others, but without coverage to yourself, will cost you about $2,000 pesos a year. The cost of total coverage depends on the kind of vehicle you have. For our ten year old SUV, the cost for car insurance is $5,000 pesos, which is $370 USD a year.
Telephone
Like everywhere else in the world, your telephone options are mind-boggling. And even though Telmex (and its little cellular brother Telcel) is still the monopoly of old, it has been increasingly forced to compete with other companies, if not in price, at least in features. You may want to compare offerings from Axtel, Telefonica, IUSACELL, and others (not to mention VoIP options) before making any decisions, but you could find yourself spending a significant part of your life shopping telephone service.
If your new or restored home has never enjoyed telephone service, you’ll need to order a line from Telmex. This process has been known to take weeks and costs about $2,000 pesos. After that, basic service is $200 pesos a month, which includes 100 local calls. Additional calls are $4.50 pesos flat rate.
If you want to upgrade your Telmex service, there are several options. For about $600 pesos a month, you can order “Telmex 1000” service, which includes the 100 local calls, 100 minutes of long distance within Mexico and a 1 Mb broadband Internet connection with wireless router. For twice the bandwidth and unlimited long distance calls within Mexico, you can order “Telmex Without Limits”, which costs around $1,100 pesos per month.
Television
Most Yucatecos of every economic persuasion own a television. What’s more, you can watch television while waiting in line at the bank, having your hair done, strolling down the aisle of your supermarket, riding in a taxi, or having your teeth cleaned. At many drinking establishments, you’ll be greeted by at least half a dozen flat panel televisions encircling the bar overhead. Yucatecos love television.
There are several local broadcast channels you can watch for free, but most people purchase a cable or satellite service. Cable providers include CableMAS and CableRed. These offer various packages of different local,
national, sports, movie and pay-per-view channels. They also offer Internet services. Basic service with 26 channels and a 256 Kb Internet connection costs $350 pesos per month.
The only real option for satellite service is from SKY, (famously pronounced, esk-EYE here,) a part of Rupert Murdoch’s global news and entertainment empire. A few years back, they purchased Hughes DirectTV, eliminating the competition. A standard SKY package costs $400 pesos per month, but includes more channels than the basic cable package. For about $650 pesos, you can have nearly all available channels, including familiar movie channels like HBO, Cinemax and Showtime, along with news from Fox, CNN, BBC and Bloomberg. Other gringo channels include Discovery, TLC, National Geographic, Warner and E! All of the gringo channels are broadcast in both Spanish and English.
Health Care
Like everything else in Mexico, there are multiple socio-economic levels of health care, ranging from free to affordable. If you opt for free or co-paid government-sponsored services, you may have to wait longer and the conditions will be less agreeable. If you choose a private hospital, you will pay more but will probably be treated to world-class facilities.
There are also several, affordable health insurance options that will take the sting out of any expensive procedures or chronic conditions. For example, our health insurance is multinational, which means it covers costs anywhere in the world. Being rather young and healthy, and because routine health care in Mexico won’t bust our budget, we chose a high deductible plan ($5,000 dollars) that costs $1,200 dollars per person annually. Emergency services are not subject to the deductible, so we recently received a claim of $68 dollars for an emergency room visit involving a sprained ankle.
We have written several articles about our medical experiences in Yucatan (just search on "medical" on this site), and there are plenty of sources of information on the Internet about this subject, so we won’t elaborate here. In short, there is very good healthcare available in Mexico and it is surprisingly inexpensive compared to Gringolandia. There are none more patient or gentle than Mexican healthcare workers. And most medications can be purchased without a prescription. We recently surveyed the prices of some basic dental and medical services, and here is what we found:
Dentistry
Dental implant: $13,000 pesos
Porcelain crown: $2,000 pesos
Root Canal: $ 1,200-1,700 pesos
Ophthalmology
Cataract Surgery: $15,000-17,000 pesos per eye.
Reflective Surgery (Eximer Laser): $15,000-17,000 pesos per eye
One Hour Doctor Visit
$400-600 pesos per visit
Blood Tests
Hematology: $100 pesos
Cholesterol: $70 pesos
Glucose: $50 pesos
Uric acid: $60 pesos
Hepatic test: $ 350 pesos
Triglyceride: $70 pesos
Urea: $60 pesos
Complete blood test taken at your home, including reports: $750 pesos
Urine Test
$80 pesos
Medicines
Advil w/12: $20 pesos
Aspirin w/40: $20 pesos
Insuline w/10ml: $25 pesos
Pedyalite 500ml: $25 pesos
Prozac w/28: $700 pesos
Tabcin w/12: $20 pesos
Tafil (Xanax) w/90: $750 pesos
Viagra w/1: $150 pesos
Groceries
Food is where the choice of lifestyle really kicks in. But again, the range is broad, and you can eat well for very little if you choose to eat local cuisine. As our article on grocery shopping explains, there are a variety of places to shop for groceries, and as any walk or drive through the city will show you, an almost infinite number of places to eat. 
First, let’s talk about groceries. A recent trip to various grocery stores resulted in this informal price survey:
Coke 500 ml: $ .60 USD
Loaf of 540 grs. multigrain bread: $20 pesos
Box of whole milk: $13.50 pesos
Box of 510 grs. Special K Cereal: $37.40 pesos
Tomatoes per pound: $12 pesos
Haas avocados per kg: $12 pesos
Papaya per kg: $ 5.5 pesos
Bananas per kg: $4.9 pesos
Granny Smith Apples per kg: $18 pesos
Philadelphia cream cheese $22.58 pesos
Bag of 3 Kg (6.6 lb) cat chow: $ 86 pesos
Can of Purina cat chow: $ 8 pesos
Bag of 4 kg (8.8 lb) Purina Dog Chow: $99 pesos
Arm and Hammer (1.36 Gal.) Laundry Soap : $84.50 pesos
Generic (1 kg) (2.20 lb) Laundry Soap: $15 pesos
Instant (100grs.) Nescafe: $ 30 pesos
Pound of sugar: $5 pesos
Absolut Vodka (750 ml): $195 pesos
Whole Chicken (3.50 lb): $ 42.80 pesos
A bag of charcoal (large): $32.02 pesos
Carton of Marlboro’s at Costco: $261 pesos
Now, keep in mind that some of these products come from the US, so the prices are probably higher here. Coffee is grown in Mexico, so as long as you don’t insist on an American brand, you can find it cheaper. And it will be even cheaper (and probably better) if you have time to go to one of the coffee shops downtown and have it ground right there for you. Chickens are locally raised, as are pigs and turkeys. But beef is more expensive, because it isn’t raised in the Yucatan. Prices of anything grown or raised locally will be even lower if you go to the local mercados, and even lower at the central mercado.
Of course, the savings in price has to be weighed against the time and money it costs to run to all those different places to get everything you need. It definitely is cheaper to eat local foods from local stores and 
shop in local markets.
Dining Out
You’ll find everything from taco stands to fast food outlets to gourmet restaurants in Merida. If you live in a major urban area in the States or in Canada, you’ll probably find fewer foreign food choices here, such as Thai or Indian restaurants.
A meal at Burger King costs about $55 pesos, more than the kids working there make in a day (but that’s another story). A taco at the Wayan’e taco stand costs $7 pesos and a drink $10 pesos, and we’ve never met someone who didn’t rave about the food. The best pork chops in Merida and a couple glasses of white wine can be found at Peregrino’s for $120 pesos. Dinner for two at Villa Maria with cocktails costs about $500 pesos, with a martini (our formal benchmark) costing $70 pesos. Dinner at Trotter’s, Nectar or our new favorite, La Recova, will be twice that with martinis costing about $120 pesos (must be the bigger olives).
Again, you can spend as much or as little as you want. You decide.
Maintenance
Nearly every expat we know here has someone cleaning their house. We do too. This is an affordable service in Yucatan, and with all these tile floors, practically a necessary one. Housekeepers are paid anywhere from $125 pesos per day to $250 pesos per day, and usually a lunchtime meal is included. Laundry is often extra, and you can hire a woman just to do your laundry. They charge about $150 pesos per day for cleaning and ironing. Laun
dry services abound, as do dry cleaners. Yucatecans are known for dressing in white and always being clean, so there is no shortage of services towards that end.
Gardening is another service that is easy to come by. Gardeners are usually paid about the same as housekeepers. Our gardener costs about $50 pesos per hour and comes once a week. There are viveros (nurseries) here that will deliver and install plants, and there are landscape consultants who will design and install a garden.
Plumbing and electrical maintenance is also a rather constant expense. Not regularly, like a gardener, but in a tropical environment with a lot of rain, lightening and humidity, stuff happens. Whether you need a shower head replaced or a hose bib somewhere where you didn’t have it before, or a new tinaco on the roof or a whole new kitchen, plumbing services will run you about $50-75 pesos an hour. Electrical is sometimes done by the same people, but more and more we are finding specialists who just do electrical work. And usually, they don’t charge by the hour, but by the job. You describe the problem and they quote a price that doesn’t include materials. You pay for materials up front, which they will purchase and return with your receipt. The obra de mano (the work that they do) is paid for when the job is done.
Painters are another type of worker you might end up seeing every couple of years. Our painter charges us $24 pesos per square meter, plus materials.
Then of course, there is the Handyman service, as referred to many times on this website, which costs $150 pesos an hour plus supplies. Handyman can do anything from ironwork to painting to plumbing and electrical repair. He’s a handy guy to know!
Tipping
La propina is a very important part of the Mexican economy, and it behooves one to carry a pocketful of coins wherever you go. We keep a stash in the car at all times. If you drive and consequently find yourself parking somewhere, you are bound to run across a little (usually old) man with a red cloth who will guide you into your parking space as if you were a returning 747 at a major airport. He will expect a tip when you get out or when you return. After grocery shopping, especially if you are a woman, you can expect those same guys in the parking lot to help you with your groceries and they should be tipped. Waiters, of course, should be tipped (the normal 15-20%, depending on the level of service). People who make home deliveries should be tipped. Anyone who helps you through your day should be tipped. 5 pesos here, 10 pesos there. It adds up, but not to very much. It helps grease the economic skids, and it’s an important part of some workers’ income. So when in doubt, tip!
A Random Price List
Here’s a smattering of prices for other things you might find yourself buying on a semi-regular basis. Feel free to add to this list in the Comments section!
Purified water 4.4 Gal: $20 pesos
Spanish lesson: $250 pesos per private class
Bag of carbon (locally-made charcoal): $6 pesos at the corner store
Movie theater ticket: $49 pesos
Santiago’s movie theatre ticket: $25 pesos
VIP Lounge ticket (barcalounger seats): $80 pesos
1 liter bottle of fresh-squeezed orange juice: $12 pesos
Official Disclaimers
Yes, we know. Somewhere in this article, we paid too much for something. Elsewhere, maybe we misquoted the price we most recently paid. We do not have a full-time accountant or economist on the payroll, but we do what we can. This article is not intended to be an exact accounting of our expenses here. It is intended to communicate the idea that living a thrifty lifestyle is more easily achieved in Yucatan than in many parts of the so-called developed world (looking at you, California). But your mileage may vary. Past performance is no guarantee of future returns. And in the end, the savings you take is equal to the effort you make.
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WGs,
Excellent researched article! Very accurate info. Here a few additional comments:
Electricity: it’s a sad reality that electricity is the most expensive utility here and as WGs say, 5000 per month is a very likely price tag if you use appliances, air conditioning and so on. Also, the rate for businesses is higher than for private homes.
Fortunately, there seems to light at the end of the tunnel. Solar energy is increasingly used in Merida. There are basically 2 different concepts of solar energy available.
a) a cheap version, where the sun basically heats water circulating through copper piping which is then stored in an insulated tank. That works pretty nicely for smaller households and allows for at least one hot shower per day (usually you don’t want it so hot anyway). The downside is that you rely on the sun. If you get a few days without sun (doesn’t happen too often here) you might only get lukewarm or even cold water. Also if you have a family member (such as my 15 year old son) whos usually spends 1 hour in the shower, you probably run out of hot water. But in general it’s a pretty cheap and efficient energy saving solution.
b) solar energy for electricity using solar panels. In the past solar panels where just not affordable and didn’t make a lot of economical sense here in Merida, but lately the system is getting cheaper and solar energy is now also subsidized by the governement.
You have 2 ways to use solar energy:
- produce energy and store it an a series of batteries. Pro: complete indpendence from CFE (Comision Federal de Electricidad), Con: high initial and maintenance cost because of the batteries (beside the space you need to store the batteries)
- don’t use batteries, but supply the energy you produce into the public electricity network. In this case you don’thave to store any electricity and only pay the difference between consumed and supplied energy. If properly planned your bill should be ZERO.
The governement supports this initiative through low cost loans (I was told 9% per year). According to the solar system suppliers, you should be able to pay off your investment within 3 years or so, paying your monthly installments instead of the electricity bill and after that time you don’t have any more electricity expenses. I’m currently considering this concept for my business and if it works fine, then I also will use if for my residence. Beside the cost factor, it’s certainly a great solution for the environment as well.
There is also another solution for larger consumers of electricity. You can install your own “subestacion” - that’s basically your own transformer - and CFE will supply you electricity at a higher voltage (and lower price) which you than transform to your 110 or 220 V. My understanding is that this can result in savings of up to 40 % on your electricity bill, however, the transformer is not cheap (starting at USD 20K, depending on the size) so it only makes sense if you have a relatively high enery consumption.
Great article! I am passing this one along to my friends. Thanks for the up to date information!
Thank you for this. From now on I will refer those numerous questions about COL to this article. Very thorough.
How about adding a date at the top of the article? Prices and exchange rates can change quite rapidly.
Jim,
You’re not kidding. We wrote this article over the course of several months and had to keep rewriting it to stay up to date. Of course, we were writing it during some rather interesting times economically…
This article was last updated on December 26th, 2008.
Excellent article: it confirmed some things I’ve discovered, clarified / corrected others, and definitely improved my “essentials” info on Merida. The cost of electricity is the most daunting item in the review. Solar energy, at least for hot water, seems to be picking up. A neighbor installed a passive system (pipes/tank) on his roof not long ago.
This is an article to be printed and referred to… and updated.
Thanks.
This is the best article about cost of living in Merida , I ever read.I’m so lucky I found you on internet years ago.Of cuorse price change , but you gave me a complete idea of where my money will go.Thanks
When ever this discussion comes up I’ ve reminded those I’ve talked to focus on the money spent over the course of a whole year, not on what spent on a month to month basis. Month to month COL amounts can be misleading and don’t paint a full picture. The first three years of residence in Merida will be more expensive(more dollars spent) on a yearly basis than some of the following years. I hear people say “oh but that was just a one time purchase.” It doesn’t matter if it was a one time purchase, it still is part of the COL. I can guarantee there will be many “one time purchases”. Things like trips back NOB, appliances(they will need to be replaced much more often), extra money spent when guests come to visit, continuing house repairs. The list goes on but seldom do they get included into peoples’ discussion of COL dollars. I recommend recording every pesos spent(we have a computer program for that purpose.) One might be surprised just how much money is spent over the course of a year. This is also a good way to check where money is going and then adjustments, if needed can be made. Every ex-pat I’ve talked to, who has lived here more than two years, has indicated that it’s been more expensive than they thought it would be. Still cheaper than NOB, but more expensive than they thought.
Again, great article. We did pay around 1000 pesos at Villa Maria during July but that was dinner for two including cocktail, wine with dinner, three courses. For the quality of food and service, it’s a bargain. Can’t wait to be there when it’s not so hot and we can sit in the courtyard.
WOW, you’re awesome. I sell beachfront property and my clients and I have always found your articles to be useful and thorough. Thank you. Jeffrey@transcaribbeantrust.com
Hey Folks, thank you for the info. I´m Mexican and didn´t know about some of this stuff lol. Great Article.
Greg brings up a good point about the more frequent replacement of appliances in Yucatan, something we failed to mention in the article. The cause is generally due to either hard water or electrical storms.
Our first approach is not to buy expensive appliances. Almost everything in the house is either a Mabe or LG brand (well, okay, the TV is a Sony). Then, we’ve installed a water softening system to address the hard water issue, and we use UPS (Uninterruptable Power Systems) for our computers and television. A wide assortment of water softening systems are available in Merida, depending on consumption and price range. Our systemn eats three bags (75 Kg) of salt for $75 pesos each month. There’s no shortage of salt in Yucatan; it’s locally produced. You can pick up a UPS at Office Depot for under $1,200 pesos. Both are good insurance.
Very nice article. Most people have a misconception that everything is cheaper in Mexico. From my experience, some things are but most things are more expensive. Chain stores there are even more expensive. If I had to guess, I would say if you bought the same items in a Walmart in the US vs the Walmart there, you would pay 25% more there.
My watch stopped working and I thought that I would just go to Gran Plaza and purchase another one and get a battery for mine on my next trip back to the US. I realize there are cheaper places to shop, but I couldn’t find a watch cheaper than 1000 pesos. A pair of Levi’s there even costs around 600 pesos.
You also made a really good point about price negotiations. My friend once bought a Panama hat from a co-op in the Centro. He later found out that even after negotiating he still paid too much, when he found it cheaper at the mall at Fiesta Americana.
If you are like me and eat out a lot, expect to pay more there. Don’t get me wrong, if you eat at an equivalent restaurant to Nectar in the US, you will pay more in the US.
Conclusion: If I live the same there as I do in the US, it will cost me more to live there, unless the value of the peso drops or gasoline gets back over $4/gal. in the US.
I really enjoy reading articles from Yucatan Living. You guys keep me updated on information and current events on “my home away from home”. Thanks!!!
Gee, working gringa and gringo went to great lengths in this article and once again, the content and everything is great.
We have become increasingly more acquainted with generators, as stand-by generators in my area due to our recent acquaintance with Hurricane Ike. These are permanently attached to one’s electrical system and the number and choice of circuits one powers is determined at the time of installation and based upon the size of generator. They can be powered with propane, so I wonder if that would be an option which would provide genuine, smooth electricity for a reasonable price?
Otherwise, you have pointed out that one can be thrifty wherever one resides. I had a wonderful housekeeper here in the states from Venezuela, here legally due to her husband being a minister, and loved her dearly. We had one hour of English lessons every time she came, and she told me she learned more from me in an hour than she could from a semester of English as a Second language. Unfortunately, I did not learn Spanish from her and my high school English has largely been forgotten. She improved to the point where I pointed out to her that despite being forlorn at the thought of losing her, she really should find a job paying much more as she had what was the equivalent of an Associate Degree in office procedures from Venezuela and her English was now proficient. I suggested a job with the local school system, and she got it, and I gave her a great recommendation. I have regretted that every single time I have to clean. At any rate, the thought of having someone to pamper me is darn attractive and other than my husband grumbling, as I know he would, about how he cannot communicate with the help, it strikes me as being wonderful.
Merida still sounds a good deal cheaper and has some great things to offer, on the whole, and thanks once again for the great article and the insight into the economy and life in the Yucatan.
Our last earthquake here in Sylmar, California kept us, for ten days. without electricity, water phone etc,- The Red=Cross was out at several key locations providing free meals water and medical assistance. My wife and four children stayed home.Cooking our meals on a portable gas stove and going out to fill up a five gallon can of water…. we still have “gratos recuerdos” reminiscing those days, including a couple of greedy local merchants who, taking advantage of the situation. were charging ten dollars for a gallon of milk etc. All of my children are now on their own except for our eleven years old son who will be accompanying my wife and I, this coming year 2009, to the “promised land
Thanks for such a well-written, informative, up-to-date and relevant article! I’m planning on going to Merida this coming Sept. or October for a stay of at least 6 months. Then ???
I have a question about car maintenance/repairs because I’d like to drive my 1990 Honda Accord. Yes, it’s an older vehicle but it has only 107,000 km. on it and it is in good shape. Would Honda parts be available and are labour costs within the range of what might be expected there?
Thanks!
I tripped over this site, and it is a treat. After returning to Arizona after a three year stint as an English professor at a university in Sonora, I have a big hole in my heart for my old students and for my home I built on the ejido there, which now sits vacant. In 1971, I had to disembark from a friend’s schooner at Isla Mujeres with a spine injury; we were headed to Belize. But I was glad, because I wound up in Merida, testing every pain killer at the local hospital and meeting the beautiful people there, until I had to fly back to DC, where I lived at the time. I’ll never forget it.
I think you have delineated almost everything correctly. You could use an older person’s perspective on the health concerns we faced. In Sonora, I was denied the ISSTESON state health insurance as a teacher because I had high blood pressure. During the time I was there, the country transited from Fox to Calderon, and Calderon put most publicly funded health programs in an economic stranglehold. Along with a few Mexican nationals as well, I was a victim of that. And when I returned last year (exactly a year ago), I didn’t know that I had most likely already contracted two types of cancer. It was only in September that I found this out, and I now face a second operation for my prostate removal (the kidney was removed in October). As bad as the overall health situation is here in the US, at least I now have a good policy through my employer. I would have died had I stayed in Mexico, but my body was telling me that I had to return to the land of E Pluribus Unum if only for the sake of my health.
I know of many friends and their families who suffer relatives lost to this lousy Mexican health care system. It is almost a basket case, but I know there are many local, dedicated health physicians who do their best to treat people at whatever they can afford. But for major health problems, the support system is just not there. Mexico has a long way to go, but I love it anyway.
I haven’t had the chance to go through your site, but I know I will enjoy it. I have many hundreds of friends and students from the land we call our Distant Neighbor, from doctors, politicians, to priests and ejiditarios and even a few local drunks. My wife and I were the only gringos within 80 miles, and I just love it. As soon as I can, I will return.
If you would like to see where I worked, go to: www.universidaddelasierra.edu.mx
Some day, hopefully not too distant, I will make a trip down to your paradise.
Kaye, I’m not sure it’s worth the effort bringing a 1990 car into Mexico. Don’t forget there are hurdles on the way, importing a car into Mexico (refer to WG’s article about her own experience).
If you really decide to bring the car from the US, you will find that it is no problem to find parts for your repairs. Usually the reapir shops don’t store many parts so be prepared to have to wait quiet some time for your parts.
Labour is cheaper here than in the US, but parts are more expensive. Also, if you repair your Honda at a Honda dealer it will more likely be more expensive than repairing it at an independent repair shop.
As usual, great work, working gringos! I lived on $800.00 usd a month in Merida, for awhile. Rented a 2 BR House at one point for $150.00 usd, and rented a fully furnished apartment for $350.00 usd a month. Were it not for the Yucatecan woman I married, who got me on her IMSS Health Care, I would have paid much more in medical. It helps knowing locals, they can open doors for you. They can give you hints as to where the bargans are. I think if you get $5,000.00 usd a month, you can almost live like a King.
I am mexican, and I confirm that article was well researched. Congratulations!
There is a Honda dealership, but do not expect them to always have parts for a car sold elsewhere in the world. Generally speaking, many parts are the same, but some dealerships (Toyota is an infamous example) will not help you with parts for older vehicles.
Unless after-market parts are available, repairs may not be possible with older model cars that were not sold originally in Mexico. (unless you can find a way to have those parts shipped to Mexico, customs duties paid, etc).
Personally speaking, I’d worry about how a nearly 20 year old car would hold up in the heat and humidity. Lots of rubber parts that seem fine may go south fast.
Thanks so much for your replies Harald and Casi Yucateco,
I’ll very likely rethink taking my Honda down to Merida. I could no doubt live more cheaply without it! And, I’m not sure how I will hold up, myself, to the heat and humidity, even through winters while escaping the hotter summer months.
A question on a completely different topic - SECURITY. Even my more ‘courageous’ friends are warning me about northerners leaving Mexico in some parts because of the (threat of?) drug-related violence and urging me to find out what the situation is, at least at present, in the Yucatan. I’d appreciate how you people are feeling about this, there in Merida. Thanks again.
I really enjoyed your COL artical.One question I have is do you have propane fed refrigerators to cut back on the use of electricity?
Or for that matter how about propane AC units?
Thanks,
Marc
Kaye, a non-drug dealing or using person, meaning, most of us. will find Merida perfectly safe. As in the rest of Mexico, Calderon’s mano duro approach to drug cartels has led to violence here and there. But it is not random, out-of-control, Katie-bar-the-door violence. Cartel members kill members of other cartels, and occasionally the police or army agents carrying out Calderon’s policy.
If I were to advise anyone to travel to Mexico today, with safety most in mind, the recommended destination would be Merida. Yucatan has long had a separate mind-set from much of Mexico about a lot of things. You are going to see lots of police if you visit Merida. And, in my opinion, they are some of the most honest police in Mexico.
I cannot end without saying the true “drug problem” is really the massive consumption and demand from the United States. Drug violence, whether in Columbia, Florida, Mexico, whatever, is all about satisfying the enormous demand in the United States. The “drug problem” is Us, not Them. There are significant amounts of “drug violence” within the US as well.
If a rational approach is ever undertaken, the level of violence everywhere will fall, once the United States reduces their demand, whether through education, treatment clinics, or decriminalization of some substances. However, “The War on …” (drugs, terrorism, etc) attitude is so prominent, it is hard to imagine that things will change soon.
I can’t believe how much you paid for orange juice!!!! You paid TOO MUCH!!!
Wednesdays are usually fruit and veggie day at most supers and you can get good deals (better than mercados) for fruits and veggies. Know your prices ahead of time though, as they will also tend to increase specific fruit and veggie prices on that day. I thought I’d done well buying a gazillon kilo bag of oranges from a lady on the street (near the periferico, but also at the local mercados) but got a better deal last Wednesaday at Mega when oranges dropped to .75/kilo.
Amazing article - lots and lots of info there.
Great Article. We have just returned from the Playa Del Carmen area and I enjoyed the vacation there. I have often thought of spending more time in that area and I was curious about the cost of living there, and you have answered my questions.
My pension would amount to about $2000.00 USD per month. Could I afford to live in a nice area, within a few blocks from the beach, in a modest home?
Kathy….
AAARgh!
Well, you know, sometimes we pay for convenience. $12 pesos (less than a dollar) for a liter of freshly squeezed OJ still feels like a steal!
John,
Frankly, we think you might find it hard to live on that in the PDC area, which has higher prices because it is such a tourist mecca. You would find it a lot easier to live on that in a modest home along the Yucatan Coast (in Progreso, Telchac, Chuburna, Chelem or one of the many towns along the coast). It’s the Gulf of Mexico, not the Caribbean, but it’s still the beach.
to Kathy, and all of us who worry, “We paid too much!”
we often shop at Mega, and other large stores, and are interested in peso-pinching, also…however, sometimes, actually many times, we like to buy things from our regular vendors at the small markets. The cost is slightly higher sometimes, but we worry about the cost of always opting for the cheapest price. Cheapest doesn’t mean best, or highest quality. Further, and most important, is the human exchange. How “cheap” our lives would become if we never purchased from our neighborhood hardware store, market, etc. We are wary of a poverty consciousness creeping in, and robbing souls of the richness that is around us. That is a cost we are unwilling to pay! Remember also to enjoy the orange juice…and not just focus on how cheap it was to buy. Otherwise, we reduce ourselves to walking calculators.
This was a wonderfully informative article. What about the computer? Along with electricity, are the charges for email (AOL, etc) any different than those in the US? Internet connections seem to be a new utility, a part of the cost of living.
thank you excellent article
we are planning to settle in merida area with plans for coffe and juice house;
what is best way to obtain transportation?
purchase or bring car/van/truck?
rrb
What an amazing, comprehensive post! Thank you.
You guys rock!
As someone who has lived in Merida a year and in Mexico 9 years, I am so impressed with the time and effort spent on this article. People need to know what will be in store for them here in order to make intelligent choices. Living in Mexico, anywhere, requires accepting that it is not NOB and that you are choosing a different lifestyle. Thanks for giving all of us and overview and reference to what it currently costs to live in this wonderful city.
Kaye,
I agree with CasiYucateco. The drug problems are a huge issue for the Mexican government. However, a person not involved with drugs in one way or the other usually sees and hears about the drug war just from afar.
I believe, that altogether Merida is still one of the safest places in Mexico (by far safer than Cancun for example). The only thing I tend to disagree with CasiYucateco is the comment on the “honest police”. Corruption always was and continues to be a way of life in Mexico and the police are no exception.
Casey, internet service works pretty much the same as it does inthe US. You can choose between DSL and Cable connection (and obviously dial up, although that’s almost obsolete). If you choose cable you can also choose from several different packages that include TV, phone and internet. Packages from Telmex include phone and internet, and the internet packages are called “Infinitum”.
There are no limits to you internet usage. You can up and download whatever you want and just pay one flat fee. You also get your email free with the service (shouldn’t be any issue anyway with hotmail, yahoo, google and zillions of others offering free mail service).
My experience is that the reliability of the services is not what I am used to from other countries. In order to avoid problems I build in redundance using the service from both providers. But then, I’m running a business. For personal consumption you might not need that.
Recommendation: go with Telmex for DSL or Cablemas for a cable internet service.
Great article. Im sure most of you have internet to communicate with your families abroad. I recommend having “magic Jack”. I work and live in Japan and this has been money well spent $39 dollars a year. Please go to magicjack.com to get information. I love your articles on Merida.
Thanks again, folks, for your views on this ’security’ issue. I felt very secure when I visited Mexico’s central colonial cities ten years ago despite warnings about the risks of being in Mexico. I tend to think most of us are not going to be involved in the on-going drug wars. So, Mexico, here I come as soon as possible!
Thanks, Harald.
Hi Gringos,
Again great research job. Just a question: what store delivers groceries?
This is a great article. I’m glad I found it before my trip to Merida the 3rd of February,
2009. I’ll print this out and continue to watch for updates.
This is my first trip to the Yucatan since reading so much about it in International Living,
and a member also. I am a travel writer and photographer, so this is to be a scouting trip for my future and retirement.
We haven’t tested any of them yet, but both Mega and Superama advertise delivery services. And Costco also claims that it will deliver.
I know Mexico’s drug crime is directly due to US consumption. As a medical professional I got to see the ravages of drug abuse up close. However, we do need to make some changes in our laws which would take some of the problems away. Legalize marijuana and take one thing out of the equation. There would be a scream from the righties and the people who make a ton of money from the so-called war on drugs, however, I grew up in the State of WV in the states during the 50’s. Hard liquor and wine was sold through state stores then. Beer was sold in grocery stores, but hard liquor was regulated to sales in the stores owned by the state. Now, they have private sales with taxes to make up the differenc.
That is what the US needs to do with marijuana. Many people with cancer treatment and MS benefit from marijuana. My father wanted me to get him some when he had cancer, and I had never even smoked the stuff and getting caught with it would have cost me my license, but fortunately one of my cousins had the access and no qualms. It really helped my father. Anyone sick enough to want marijuana should have access to it. For that matter, legalize the stuff, sell it in stores, take away the crime associated with it and there would be one less clog in the drug dilemna. One has to have a tobacco allotment to grow it in the states and they could do the same thing with pot.
We could save a fortune by not having to police it as hard, get the income from it, and still be able to regulate the use of it. Who would not win in that situation?
The sale of cocaine, crack and methamphetamine or heroin would not ever be legalized, and I am not sure that it should. However, the war on drugs is not working and decriminalizing the use while really going after the people in the cartels and sales line may help, and there should be legitimate treatment and assistance available to get people off the stuff.
That is just my take on it, and anything which would help the US and Mexico in removing some of the burden of the drug use would seem to be the best thing for everyone.
[…] Border, HERE is the USDA’s current price summary. If you didn’t read it already, check out our Cost of Living article for more local […]
This is a fantastic article that obviously took a tremendous amount of research and effort. And it was interesting and an enjoyable read. Well done!
Your readers also might be interested in the UBS survey. UBS does occasional surveys on the cost of living in various major cities around the world. Alas, Merida did not make the list. However Mexico City did, and in 2008 (before the dollar rallied and the peso crashed), cost of living there came in at about 61% of the cost of New York City (excluding rent) and 49% of the cost of NYC including rent. Now add in about a 30% decline in the value of the peso since the UBS report was published, and DF would come in at 34% of NYC costs, or about a 66% discount, when you factor in rent. Obviously Merida would be much cheaper than DF, so take it from there.
For more information on the survey or a downloadable copy, go to http://www.ubs.com/1/e/wealthmanagement/wealth_management_research.html
I’d finally add this: if your question is, “how much does it cost to live in Mexico?,” you should first ask yourself, “how much does it cost to live in the USA?” Clearly the answer is, “it depends.”
It depends on your lifestyle, what city you live in, what part of that city, what you regard as acceptable with regard to clothing, cars, vacations, travel, etc. And those factors will drive tremendous variances in your own cost of living wherever you are.
Maybe a move to Mexico is also a good time to reconsider and simplify. I hope to do that myself some day.
Regards,
Kim G
Boston, MA
Where upon moving from San Francisco more than 10 years ago, it appeared quite cheap. But the truth is, it’s still quite expensive.
Great article ! Am Looking at the Yucatan @ Belize for retirement.
Information on this level is extremely difficult to Find.
thanks for the effort
JD Shaddix
This is by far the best article I’ve read on “real life” in Mexico. Thank you, thank you, thank you for the time and energy you put into writing this. I found it enjoyable and very informative and a huge help!
[…] definitely a good starting point for people curious about the subject of the cost of living here. Yucatan Living - The Cost of Living in Merida Yucatan __________________ Useful In The Roo Links 1. Find local businesses in our Directory. 2. Need […]
A very timely article for us, as we are planning to make the move to Mérida a little later this year. We really didn’t believe all those articles claiming that one can live in luxury in Mexico on USD1500 per month.
You might be interested to know that one of our electricity suppliers has just raised its charges by 24%, retrospective to the beginning of this month. Cheap electricity may soon become a thing of the past for many of us who thought we’d have it for ever.
Ann C
Brisbane, Australia
I loved your article. Seems to be great information. I live in San Diego and just saw the show on HGTV about a woman artist purchasing a home in Merida. Well, I love Mexico, love the Yucatan.. and have been thinking alot about moving to Mexico.
If a persons home was paid for, and I’m thinking somewhere around $100,000 - $150,000 USD in an area with enough expats to be comfortable, do you think they can live on $1,000 USD a month if they live fairly modestly.
Thank you again,
Kay
It all depends on your lifestyle and your choices. Here in Merida, there are certainly many people, though not necessarily expats, who live on that and less.
My husband and I have been reading your columns and your site and it is one of the best we have seen for any country. We have looked at sites for Panama, Costa Rica, Spain, and others and this is the best written, has the most fun in it, and the best wit, bar none.
We are wondering about something, however. We have continued to see Real Estate listed in USD. Many of those pieces of real estate were listed when the peso was pegged to the dollar at 10.5. In recent days, that is now at 14.5 pesos to the dollar. A few sites have some listings in pesos, but most still have it in dollars. My husband is a stubborn person, and he is holding to the fact that the real estate should be pegged downward in cost, reflecting this change, as it had when we considered a trip to Europe. Our son nixed that, as he wants to go to Disney World with his children and Grandma and Grandpa are expected to go. However, the hotels and restaurants now reflect the rise in the dollar against the Euro and pound sterling, and we were hoping on some guidance as to whether this may begin to be reflected in the price of real estate?
Thanks for any answers and assistance on this.
Many Mexican families frequently live on $500 a month or less, although Merida is becoming pricey even for natives. If you shop the mercados (local markets or central market) and eat modestly (price not volume!) and don’t have a lot of demands (AC at all times, movies or dining out frequently, lots of car travel), you could get by with $1000 easily.
And, life in Merida could be enjoyable. Take the bus, learn the local fun hangouts (people watching is my favorite), live like Mexicans.
But if you need a US lifestyle with satellite TV, high speed Internet, heavy Wireless use, lots of driving, lots of dinners out… No, $1000 is not enough at all.
And, Kay, I know you mentioned you’d be comfortable around ex-pats, but I bet you’d be surprised how much the local Yucatecos will adopt you and at least make you feel welcome, if not right at home. For that price range of a house, you can get much more by going to the edges of Centro and looking in some of the “less gringo” areas. Best of luck! (should we keep the light on for you?)
We live in Alberta, and are frugal, our heat bill for last month 20 days was 285.00 after a 58.00 rebate. we have the energy saving light bulbs etc. and our electrical bill was 180.00
our property tax per year is 3000, insurance 800.00, water bill is 150.00 for 2 months.
We bought a home in Chelem a few years back and plan to move there permanently, but you know that takes time and planning. Our home here must sell and will be on the market shortly. Work shifts are being figured out for the better half as he will continue to work in Canada.
We are hoping to be there the latter part of this year. Your site is great, full of very useful information, thank you
Hola, Brenda…
Regarding the reducing of real estate prices due to change in the currency exchange rate between pesos and dollars, it is really an individual matter. Any price can be negotiated, and it’s really whatever the market will bear.
Working Gringos give a good answer about home prices & exchange rates. I’ve heard people discuss this over and over and never get anywhere. They want a *discount,* gosh darn it!
Here is the plain truth: As long as other people are showing up, paying ‘those prices’ in Dollars, then the prices will not fall. That is, “The Market” supports those prices.
If buyers dry up altogether, then prices may drop for some houses where the sellers are desperate. But other owners may hold out, simply because they can.
From what I understand, people are still showing up, paying ‘those prices’ in Dollars.
So, sellers probably will not drop their prices by 40% or 50%… at least as long as buyers continue to flock to Yucatan. In fact, prices in Dollars could continue to rise!
And remember, everything Mexicans have to buy from the USA has shot UP in price. They aren’t feeling like they need to discount what they are selling, when faced with increased costs.
Thanks so much for such a fabulous article. I look forward to visiting Merida and surrounding areas with retirement as a goal in a few years. Anyone who has information regarding nearby towns etc would be greatly appreciated. Thanks for all your time and energy for so much great and useful info!!!
I am quite frankly fed up with our government here in the U.S. I love this country but I feel that it is no longer ran by governing officials but by money. Benjamin Franklin and Grant and Jefferson are still running this country. We have a governor in Illinois being charged of selling a Senate seat. What is going on here? I am tired of working very hard to provide for my family and never gettting ahead. I live in California and now we are told that we will be getting I.O.U.’s for are tax returns. The cost of living here is outrageous. The job market sucks and our economy is in a shambles. Everything here is money, money, money. They say money isnt everything….but it is in the U.S. I just found out that the Federal Government has now taken my tax return of $7,100 and applied it to a student loan that I am in good standings with. I did go default on it but have re-established a payment plan and have been in good standing for 6 months now. I have 3 daughters and a wife and we were counting on that money for bills so tat we can get ahead. Instead with-out notice…it was all taken away.
Enough about my problems, but now to my questions. I have a valuable trade as a certified massage therapist. I currently am running my own practice here in California. I am really thinking about moving south of the border and after reading your wonderful article the thought is now turning into a plan. My questions are as follows.
Would it be unwise of me to move my kids of 13, 3 and 1 to a new country?
Is there good schools there?
I am pretty sure I am going to have to go the private school route, so I was curious to know what the cost of these schools are.
The other question and my last is, Are there tourist areas near where you live? I am sure the locals would nt be interested in massage therapy, but if I can land a job or start my own practice in a tourist area and live in an area where the locals live, that would be ideal for me.
Thank you so much for your wonderful article. I am really doing a lot of research on this. I think I am going to live there for a year to settle in and then send for my family. Any advice would be much appreciated.
Hi,
I’m just ‘checking up’ on the current (Feb. ‘09) apartment/small house rental situation in the Merida area. I’m hoping to relocate there this Sept. (with Canadian$) and wondering if the current Mexico/global financial situation is effecting rental rates and availability one way or another. For example, are gringos flocking south to Merlida to try and live more cheaply, thus making reasonably-priced rentals (max. $500 US) more scarce? Any info’ would be appreciated. Thanks.
Troy,
My husband is from Merida and goes to an “old man” 15 minutes outside of Merida who does some “old school” massage therapy on him for $5 US dollars. I’m not saying it’s entirely impossible to get a local clientele but don’t expect the locals to pay US prices for a massage session. For example my husband teaches tennis here in VA in the summer. He charges $75-$60 an hour. In Mexico, his brother teaches tennis at a nice club and gets $5 an hour, and that’s expensive. Parents will usually pay only $3 an hour. Any “service” based industry down there is going to be tough to charge a lot for because the locals will always try to find it some place cheaper.
However, the light at the end of the tunnel is… to get a location in Merida to open up your own place is inexpensive. I would say $250 a month for a decent location. And since you have an “American” way of thinking I am sure your standards will be very high quality. Merida is big in sports such as baseball, tennis, and soccer. They hold a yearly tennis match at Club Campestre, which brings in tennis players form all over the world, so your services will be in high demand there. They also have a fairly new tennis academy call el “Bic” (sponsored by the BIC company, razors, etc.) where you could sell your services. Merida has a good baseball team and it’s all about who you know and having the right connections.
There are opportunities in Merida. However the article above brought up a really good point about how costly living the first 2 years can be. My husband and I go twice a year and are always asked to bring electronics with us. The kids DS Lite which we bought here in the US for $100 sells in Merida for $250. Any electronics, double it. Nike shoes we buy here for $40, easily $110 there. If we weren’t buying for family, we could make out really well with the electronic stuff we bring.
Hope this gave you some insight.
GREAT article! well researched, very accurate.
What are obstacles for a gringo to go into business there? Who controls licenses?
Dear Anonymous,
Of course, it depends what kind of business you are trying to get into. From what we’ve heard, the hardest license to get is a liquor license, and yet we know gringos who have succeeded in that. Mostly, we have not heard about any difficulty going into business here for extranjeros. It would seem that Mexico wants our business, especially if we provide employment.
Dear Gringos,
I am also one that is FED up with the US! It seems as though you can’t hardly walk down the street anymore, without a license, permit, or just someones permission anymore. I have been looking into moving to cancun or merida for about a year now, and I have just about had enough! I’m just a southern country boy raised the old-fashioned way in the heart of GA. I’m kind of a jack-of-all trades type person with a 140 IQ, and my wife and I have talked about me coming on down there for a while to get us set up so she can come about 6-12 months later. What i need to know is, just for 1 person to move there, ( and get a job ANYWHERE, WALMART, A HOTEL, WHATEVER) what is the minimum amount of money that i would need to get started? ( fm2 visa, port charges, ect)
My husband and I are planning to move to Merida in the next 1-2 years. We are researching everything we can think of but would appreciate any words of wisdom for things we may not have thought of. We are coming down for vacation in June to look at real estate, schools for my son, and the sites as well as making contacts that will be useful. If anyone has any suggestions as to other things we need to look into please email me. We are concerned about all the reports of crime/drug cartel behavior and wonder what the locals thoughts are on this subject. We also wouldn’t mind making contacts for potential new friends. My email address is astorey2006@yahoo.com.
I don’t want to sound discouraging, but if bureaucracy is bothersome, Mexico may not be a good choice. Mexico is not for everyone. From my perspective (and I am sure there are many others), a person must be eternally flexible, ready for surprises, and ready for delays to live full time in Mexico.
As an example, Merida requires permission to modify most houses in Centro and there are all sorts of licenses and other things required for a business. Read some of “Not the News, Merida” for an interesting perspective:
http://maloso.blogspot.com/2007/10/hewlett-packard-service-in-merida.html
I have very seriously been considering moving to Vera Cruz in the very near future. This article on Merida makes me think that that might be an ideal location.
I will be traveling to Vera Cruz this summer, and will definitely spend some time in Merida.
Thanks for the advice.
What happen no posts since March 28th
Where did everyone go ?
Excellent researched article! we can almost say that you are becoming real mexicans now because you know so much about this great country!
anyone out there living without auto but with health insurance on about $1,300.00 monthly? would be purchasing home and usually conservative in household expenses.
hello! AWESOME ARTICLE! im almost done w getting my certification to teach english abroad and i hope i can afford a place in merida but i also like the country .. i hope i get more info about teaching english there or maybe spanish as well to other americans!! will i need a special document to teach spanish you think?
Fantastic article and web site.
The opportunity may exist for me to relocate to Merida for a couple years to work for my company. My wife and I live in North County, San Diego and we hear and read the incessant stories about the serious crime in Mexico related to the drug trafficking; enormous numbers of killings and hijackings and kidnappings and frequently innocent people are caught in the crossfire.
Obviously, those of you who have been fortunate enough to live what sounds like a great life there will hear and experience more of the reality there. Naturally, the bulk of the danger is close to the borders here, but there is still some news of issues all over the country (not to mention the current H1N1 virus issues). We would love to know more on a local perspective to this concern. Also, if we are lucky enough to get to visit soon as we evaluate this opportunity, to whom might we turn for some local insight as we get there, especially with respect to home rental areas etc. Thanks again. This is a great service.
Well, Jacques, you have come to the right place for sure!
You might want to also check out The Truth About Mexico (www.thetruthaboutmexico.com), which is an aggregated website written by a bunch of us who live in Mexico, specifically on the subject of whether or not it is safe to live here.
On the Yucatan Living website, you should probably read the Merida Neighborhoods article, http://www.yucatanliving.com/destinations/the-neighborhoods-of-merida.htm, as well as the entire Real Estate section. Also, check out the Vacation Rental section for a listing of local vacation homes that are for rent.
Most of the local real estate companies have rental sections now, and you can see a list of those (and other important resources) in our Resource Guide (http://www.yucatanliving.com/yl-service-listing.pdf) which is linked from the orange box on the left side of the front page. Also there is a link to our Events Highlights listing, our Month at a Glance Events Calendar, Merida Emergency numbers and a Frequently Asked Questions page that links to many of our articles.
If you read through all of that, you will know a lot more than we did when we moved here!!