San Miguel de Allende, Guanajato

Upon arriving in San Miguel de Allende, many are struck by the significant presence of foreigners.

Located about four hours from Mexico City, this city is home to approximately 10,000 immigrants from around the globe, particularly from Germany and the United States, especially those over 50.

English is commonly spoken, facilitating integration for newcomers.

Expats appreciate San Miguel de Allende for its leisurely lifestyle and stunning Spanish colonial architecture.

While not a beach destination, it enjoys a pleasant climate with warm days and cool nights year-round.

Some locals might argue that the influx of expats has driven up prices, but when compared to the U.S., it remains quite affordable.

For instance, living expenses in Newark, New Jersey, are significantly higher.

The homicide rate in Newark exceeds that of San Miguel de Allende by 35%. So, if you're from Newark, you’d find San Miguel de Allende to be both safer and more financially manageable!

In San Miguel de Allende, a house with a swimming pool can be rented for around 23,000 Pesos, which is less than $1,400.

For that price, you might only secure a dilapidated studio in a hazardous area in Newark…

6th Place: Ensenada, Baja California

Ensenada, located about 70 miles south of the San Diego/Tijuana border on the Baja California peninsula, is often dubbed the Napa Valley of Mexico.

Home to numerous vineyards, it has attracted both expats and acclaimed chefs, leading to a flourishing culinary scene centered on fresh seafood.

While safety statistics for Ensenada may not seem ideal, much of the crime is border-related and doesn't typically impact residents.

Its proximity to the U.S. has fostered a thriving community of American expats and remote workers. It’s easy to see why: living costs are 52% lower than in San Diego!

Less than half the price!

For comparison, a lovely home in one of Ensenada's prime neighborhoods can be rented for just 38,000 Mexican Pesos per month, which is under $2,300.

In San Diego, you’d receive much less for that same amount.

Living in Ensenada means enjoying nearly perfect weather all year, with temperatures ranging between 60–80°F (15–27°C).

5th Place: Puerto Vallarta, Jalisco

Puerto Vallarta is known for its friendly locals and is recognized as one of the safest beach towns in Mexico.

It features stunning white-sand beaches, a lively nightlife, and the iconic Church of Our Lady of Guadalupe.

The homicide rate in Puerto Vallarta is 9.1, comparable to American cities like Phoenix or Denver.

> However, living costs are significantly lower.

Denver is 88% more costly than Puerto Vallarta, making expenses almost twice as high.

For example, you can rent an apartment in Puerto Vallarta with pool access for less than $900 monthly.

Yes, you heard it right: for under $900.

The combination of affordable living, relative safety, and a mix of modern amenities with beautiful beaches makes it a preferred choice for retirees and remote workers.

Puerto Vallarta boasts a vibrant expat community, with around 15,000 foreigners residing there year-round.

An American expat shared their experience living in Puerto Vallarta:

"I spent a year in Vallarta and was heartbroken to return to the U.S. I always felt secure and adored the community. I took daily walks and became accustomed to the warm greetings, so much so that returning to Seattle was a shock when no one said hello."

I can relate, mi amigo…

4th Place: Mazatlán, Sinaloa

Mazatlán, positioned as the northernmost resort along Mexico's stunning Pacific coastline, is home to about 10,000 expats.

This beach city is admired for its beautiful shoreline, but its primary advantage is the lower living costs compared to other Mexican cities, making it popular among foreigners.

While there is some violence in the outskirts related to drug activity, it generally does not impact city residents.

Mazatlán is considered safer than the national average, with a homicide rate of 8.4 per 100,000 people annually, similar to Boston.

> However, Boston is 146% more expensive!

Consequently, a lifestyle that might cost $7,000 a month in Boston can be maintained in Mazatlán for under $2,400.

You can find an apartment with pool access for just 13,000 Pesos, or around $780.

3rd Place: Chapala, Jalisco

Chapala is nestled in a valley of the Sierra Madre mountains, bordering Mexico’s largest lake.

With a population of 56,000, serious crime is quite rare here.

The homicide rate stands at just 3.5 per 100,000 people annually, lower than Latvia and significantly less than the U.S., where the average is 6.4.

> In larger U.S. cities, violence can be even more pronounced; for example, Philadelphia has a homicide rate of 20.

This means the likelihood of being murdered in Philadelphia is 570% higher than in Chapala!

Perhaps this is why this tranquil lakeside locale has drawn a community of 20,000 expats, primarily from the U.S. and Canada.

Many spend only six months a year here, especially retirees.

The weather is delightful with low humidity, and the town features hot springs from the volcanic lake, providing a spa-like atmosphere.

You can rent a furnished apartment with a lake view for just 13,000 Pesos (about $780), or purchase one for $125,000.

Now, let’s reveal the final two cities on our list!

2nd Place: Sayulita, Nayarit

Sayulita, a charming town with only 5,000 residents, boasts a homicide rate of ZERO.

This family-friendly destination experiences minimal violent and petty crime.

Nestled between mountains and jungle on Mexico’s western coast, it is merely an hour away from the livelier Puerto Vallarta.

Sayulita's serene atmosphere has attracted many Canadian and American expats.

It's perfect for nature enthusiasts and those who love outdoor activities.

However, due to its small size, finding rental or purchase options may be challenging.

The Winner: Mérida, Yucatán

Mérida is conveniently located near the Caribbean and just a few hours from the Riviera Maya, including popular spots like Playa del Carmen and Tulum.

Some might wonder why Playa del Carmen isn't on this list.

While it has its merits, the influx of tourists has led to some challenges, as reported by residents.

Mérida, in contrast, isn't as tourist-heavy as Playa del Carmen or Cancun, being situated 35 kilometers from the coast.

Despite its large population of over one million, many areas still retain a small-town charm.

> And it's exceptionally safe—comparable to European standards.

Mérida consistently ranks as one of Mexico's safest major cities, with even petty crimes like pickpocketing being rare.

The homicide rate in Mérida is only 1.5 per 100,000 residents annually. This is akin to countries like Finland or the UK and is 77% lower than in the U.S.

When compared with American cities, Mérida is safer than Austin, Texas, or San Diego, California, while the cost of living is significantly lower.

Living in Austin is 82% more expensive than Mérida, while San Diego is 113% pricier.

A spacious three-bedroom apartment with three bathrooms, two parking spaces, and pool access costs only $930 per month.

This apartment comes fully furnished and is located in a desirable neighborhood!

Now, compare this with what you might get in San Diego for a similar price…

With its affordable prices and high quality of life, Mérida is a favorite among expats and is probably the best option in terms of cost-effectiveness and safety.

To explore more about the best countries for retirement abroad that offer high living standards at lower costs, check out our article on European countries seeking foreign retirees.

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Levi Borba is the founder of expatriateconsultancy.com, creator of The Expat channel, and a best-selling author. You can connect with him on X here.