Cost of Living in Cabo Mexico

Cost of Living in Cabo: Insights from a 47-Person Poll

Thinking about moving to Cabo San Lucas? Curious what it really costs to live here? We recently ran an anonymous survey with 47 participants from the U.S., Mexico, Canada, Australia, Italy, and beyond to get a true picture of everyday expenses. Cost of living is highly personal. While it’s generally easier to live more affordably in Cabo compared to the United States, many residents choose to dine out often and embrace the lifestyle rather than focus on pinching pennies. Here’s what we found.

Who Took the Survey

• 19 from the U.S.
• 14 from Mexico
• 7 from Canada
• 1 from Italy
• 2 from Australia
• 4 no answer

Respondents represented a variety of occupations, from real estate (17) and business owners (4) to retirees, remote workers, construction, hospitality, and professional services.

Housing

• Average Rent/Mortgage: $1,950 USD/month
• Highest Reported: $8,000 USD/month
• No Payment: 11 participants either own their home outright or have unique arrangements.

👉 Housing is often the biggest variable in Cabo. Those renting or financing will pay more, while outright owners significantly reduce monthly expenses.

Utilities (Electricity, Water, Gas, Internet)

• Average: $343/month
• Highest: $1,050/month

Electric bills tend to spike in the summer due to air conditioning, while internet and water remain relatively stable.

Food & Groceries

• Average: $746/month
• Highest: $2,000/month

Dining Out

• Average: $749/month
• Outlier: $4,000/month (not included in averages)

Interestingly, participants reported spending slightly more eating out than on groceries, highlighting Cabo’s vibrant restaurant scene.

Transportation

• Average: $496/month
• Highest: $2,000/month

Most households spend $400–$500/month on fuel alone, given Cabo’s spread-out geography. Public transport options are limited to buses, so nearly everyone drives.

• Car Insurance Example: $156/month for full coverage in Cabo (vs. $190–$225/month average in the U.S.).

Healthcare

• Average: $350/month
• Highest: $1,000/month

Private insurance and out-of-pocket medical expenses vary widely. Many expats still find healthcare more affordable than in their home countries.

Entertainment & Leisure

• Average: $520/month
• Highest: $3,000/month

This category had the widest range: some spend less than $200/month, while others exceed $1,000 regularly. A few even reported “zero entertainment in Cabo.”

Education & Childcare

• Average for Private Schools: $690/month
• Highest: $1,400/month

Childcare and schooling costs are highly variable. One respondent noted spending $200/month on their dog instead of children.

Miscellaneous Expenses

• Average: $220/month

Includes subscriptions, personal care, and unexpected small expenses.

Household Help

• Average: $250/month

Hiring cleaners, gardeners, or maintenance staff is common and more affordable than in the U.S. or Canada.

Realistic Couple’s Budget: Example from California

One California couple shared their actual costs:

• Rent: $2,300/month
• Groceries: $1,000/month
• Dining Out: $250/month
• Cars (2): $1,000/month
• Healthcare: $1,000/month
• Entertainment: $500/month

Total: $6,050/month
➡️ They estimated Cabo is about 80% of the cost of Southern California.

Cabo vs. Other Countries

Survey participants compared Cabo to their previous locations:

• 60% more expensive than Australia
• 80% of Miami costs
• 100% more than Italy
• 50% cheaper compared to living elsewhere

When asked directly:

• 19 said Cabo is less expensive
• 6 said it’s more expensive
• 3 saw no change

Final Thoughts

Cabo’s cost of living is not “cheap Mexico”—it’s a blend of affordable local services with high-end international prices for housing, healthcare, and imported goods. For many, Cabo is 20–40% less expensive than major U.S. cities, but lifestyle choices (luxury dining, imported groceries, private schools) can easily push costs higher.

Bottom line: Cabo offers a unique value proposition—modern amenities, beachside living, and strong healthcare options—at a cost that sits somewhere between Mexico’s interior cities and North America’s coastal metros.

Fletcher Wheaton - fletcher@remexico.com - For help with real estate in Cabo, reach out to Fletcher Wheaton.