Mexico vs USA: Cost of Living, Economy, and Quality of Life Compared in 2026

Mexico's cost of living is approximately 50–60% lower than the US average, making it one of the most attractive relocation destinations for American remote workers and retirees. Mexico City's monthly cost for a comfortable lifestyle is $1,500–$2,500 USD; the equivalent in a comparable US metro area is $3,500–$6,000+. The US leads Mexico on GDP per capita ($80,000 vs $12,000), life expectancy (76 vs 75 years), and institutional quality (healthcare, rule of law, infrastructure). Mexico leads on cost of living, food quality (particularly fresh produce), weather in many regions, and real estate value. The best places to live in Mexico for US expats include Mexico City, Oaxaca, San Miguel de Allende, Mérida, and Puerto Vallarta.