Cost of living in Mexico City vs Houston: where your dollars stretch

Mexico City is cheaper than Houston on almost everything except the thing you'll spend most on: rent in the neighborhoods Americans want to live in.

The short version

• Asking rents in Roma Norte and Condesa run about MXN 24,600 to 29,500 a month (about USD 1,310 to 1,580) in fall 2026 [6][7]. Houston's median gross rent is USD 1,361 [3]. So housing isn't the bargain people expect.
• Public transit is dirt cheap: MXN 5 (about USD 0.27) for a Metro ride and MXN 6 for the Metrobús in 2026 [9].
• The typical Mexico City household spends about MXN 66,400 a quarter, according to INEGI, Mexico's statistics agency [8]. A typical US household spent USD 78,535 in all of 2024 [1].
• Your budget depends far more on your lifestyle than the city. Eat street tacos and ride the Metro, and Mexico City is a steal. Live in Polanco, shop imported and take Ubers everywhere, and it starts to feel like Houston.

USD conversions use the Banco de México FIX rate of 18.7147 pesos per dollar (November 5, 2026) [10]. The peso moves, so treat dollar figures as a ballpark.

The big picture: how households spend

Official surveys don't measure the same things in both countries, but they're the most reliable yardstick we have. The BLS Consumer Expenditure Survey covers the US and the Houston area, and INEGI's ENIGH household survey covers Mexico City.

We divided the annual and quarterly figures by 12 and 3. Houston's healthcare figure is from its 6.7% share of spending [2].

Read the Mexico City column carefully. It describes the average local household, and many of them own their homes outright and earn far less than a typical American. That's why "housing" looks so low. An American renting in Condesa won't spend anywhere close to MXN 2,640 on housing. Still, the table tells you something real: food takes a far bigger bite of a Mexican budget (about 37% of spending), while cars and transportation take a much bigger bite in Houston, where they're about 20% [2][8].

Rent: the one place Mexico City can match Texas

Houston's median gross rent, including utilities, is USD 1,361 a month (Census ACS 2020–2024) [3]. Here's what listings in Mexico City asked in fall 2026 [4][5][6][7]:

These are averages across all sizes. A modest one-bedroom costs less than the average, and a furnished place aimed at foreigners costs more. Utilities in Mexico City are usually extra: electricity, gas, water, internet and the building's mantenimiento fee.

Bottom line: if you're coming from Houston and want a walkable, central neighborhood, budget for rent about the same as back home, not a fraction of it. If you're happy in Narvarte, Del Valle or further out, the math gets much friendlier. See our guide to renting in Mexico City for deposits and the aval.

Groceries and eating out

Food is where Mexico City shines, especially if you shop like a local.

• Markets and tianguis (street markets) are the cheapest places for fruit, vegetables, tortillas and meat. Every neighborhood has a mercado.
• Supermarkets like Walmart, Soriana, Chedraui and La Comer cover the basics. Imported US brands cost more than they do stateside, because they're imported.
• Costco has stores in the city, so yes, the Costco run survives the move. Prices on imported goods are no bargain, though.

Eating out ranges wider than in Houston. A comida corrida (fixed-price lunch) at a neighborhood fonda or tacos from a street stand cost a small fraction of a sit-down meal back home. Mexico City's top restaurants, on the other hand, charge prices you'd recognize from Houston's Montrose or River Oaks. Tipping runs about 10% to 15% in sit-down restaurants.

We don't quote individual grocery prices because they change too fast with the peso and the season. The INEGI numbers above show the pattern: food is the largest single item in a local household budget, at about MXN 8,100 (about USD 430) a month [8].

Getting around: the clear win

Houston is built around the car. Mexico City isn't, and that's where you'll save the most. Here are the official 2026 fares [9]:

Ride-hailing apps are widely used and cost much less than in Houston for a similar trip. Many Americans here sell their car and never look back. If you do drive, budget for gas, parking, insurance and the Hoy No Circula driving restrictions, which ban some cars on certain days. In Houston, the average household spent about USD 1,411 a month on transportation in 2023–24 [2]. In Mexico City, without a car, a heavy transit user pays a tiny fraction of that.

Healthcare: cheaper, but don't skip insurance

Private healthcare in Mexico City costs far less than in the US. A private doctor's visit or a basic lab test usually costs a small share of what it would in the US, and English-speaking doctors are easy to find at the big private hospitals. The INEGI survey puts typical household health spending at about MXN 810 (USD 43) a month [8], against about USD 516 for the average US household in 2024 [1].

Two heads-ups:

1. Medicare doesn't pay in Mexico. If you're 65 or older, you'll need private Mexican insurance, an international plan or cash. Major hospitalization without insurance gets expensive fast.
2. Private insurance gets pricier with age, and plans can exclude pre-existing conditions.

Our guide to healthcare in Mexico City covers public vs private coverage.

Putting it together

There's no one "Mexico City budget," and anyone who quotes you a single number is guessing. Think about it in three layers:

1. Rent. Pick a neighborhood and check current listings. This is your biggest and least flexible cost.
2. Lifestyle. Markets and fondas or imported groceries and fine dining; Metro or Uber; a gym membership or a run in Parque México.
3. The US costs that don't go away. US health insurance or Medicare Part B premiums, storage, a US phone line, student loans and the cost of filing a US tax return.

For most Americans, the honest answer is that Mexico City is noticeably cheaper than Houston if you live like a resident, and only somewhat cheaper if you live like a tourist. Before you move, compare notes with people who've done it. Our community group for Americans in Mexico is a good place to ask what people really spend.

Sources

1. BLS: Consumer Expenditures in 2024 (news release, December 2025)
2. BLS: Consumer Expenditures for the Houston area, 2023–24 (January 2026)
3. City of Houston Planning: Median gross rent, ACS 2020–2024 five-year estimates
4. Propiedades.com: Apartments for rent in Narvarte, price data
5. Propiedades.com: Apartments for rent in Polanco, price data
6. Propiedades.com: Apartments for rent in Roma Norte, price data
7. Propiedades.com: Apartments for rent in Condesa, price data
8. INEGI: ENIGH 2024 results for Ciudad de México
9. Récord: Official public transit fares in Mexico City, 2026
10. Banco de México: FIX exchange rate

Keep reading

• Renting in Mexico City
• Neighborhoods for Americans in Mexico City
• Medicare when you live abroad
• Sending money between the US and abroad