This question always makes me giggle as it seems to me, no matter where you live, what it costs to live depends solely on how much you have to spend. Call me crazy, but if you have $1500 US a month to spend, chances are you are spending $1500 a month! If you have $3000 – you will spend $3000. Trust me here – International Living magazine may be telling the truth when they say you can live on your social security check in Mexico – but if you think that that small amount is going to buy you a comfortable lifestyle – bear in mind, "comfortable" is very subjective.
For example, to me, 34 degrees Celsius with 90% humidity at night without air conditioning is not comfortable. Nor is that temperature comfortable during the day for me without a pool or ocean. Eating 3 tacos a day and a submarine sandwich for supper may be cheap here – but that is just not "on" for me. To be "comfortable" I like good quality, healthy food – a variety of it. You get my point. Yes, you CAN live on $1500/month – and yes you will live better than many of this country's poor – but is that really what you had in mind for retirement?
Prices in Mexico are as variable as prices anywhere else. There are very cheap places to live and very expensive places to live. Generally, the closer you are to a tourist location such as Cancun, Playa del Carmen, Cabo san Lucas, Puerto Vallarta – the more things cost. The same would be said in Canada. Inland – far away from the beautiful blue sea and white sand - and from the gringos and their dollars, things tend to be less expensive.
It is ironic that the very people who come to Mexican resort areas because it is so much cheaper to live, are part of the reason prices are rising so much here. It is like in Vancouver, Canada. Rich Chinese are buying the real estate. They buy, they only live there a few months a year, and they drive the prices sky high - making it hard for average Canadians to afford a house there. Well, that is what average Canadians do when they buy in Mexico. They drive the prices up – making hard for the average Mexican to be able to afford.
Social media, I believe, has also played a role (at least on the little things). People travelling here often visit the various Facebook groups, or Trip Advisor to ask for recommendations. “Where is the best place to rent a car?” is one I read a lot. Inevitably, in this area (Bucerias) the answer is “Gecko Car Rental.” Now nothing against Gecko – but their prices are consistently higher than most other places – and yet – people continue to recommend them. I do not think they were always more expensive – but supply and demand – based on online recommendations – has assured their market. There will be no sales on car rental at Gecko to be sure. In fact, good luck if you only need a car for one day – because they can afford to insist you take it for 3 or 5 days! Now in fairness, Gecko can be counted on to not hide any fees, and they will pick you up at the airport – which is not always the case with others. Bur rest assured - there will be no Mexicans renting at Gecko!
Another thing that is debated on social network forums is the impact of extranejos insistence on over paying for things. Some say that while that seems like a good thing to do, it shows a lack of cultural understanding of how it ultimately hurts the very people it is meant to help. For example, during “gringo season” taxis often raise their prices and /or instead of picking up locals will drive right by and seek out a gringo who will over pay. Yes, the “poor” taxi driver is earning some much needed extra cash – but what about the poor mother on the street corner trying to get her daughter to the Doctor who cannot get anyone to pick her up? Or how about the poor woman at the market who normally pays 10 pesos for a pineapple, who now has to pay 50 pesos – because the "Mexican" market is now a "tourist attraction" and gringos are willing to pay that and don't want to barter – so that is the new price.
Now don’t get me wrong, tipping your waiter or your taxi driver or your maid is important – they NEED those tips to survive…why? Because minimum wage here is about $8 a day (not an hour) and thanks to gringo season everything has gone up in price. Ironic – that’s all I am saying.
Truthfully though – it is not so much the gringos to be blamed. The real reason is that Mexico’s economy is on fire! At this writing, Mexican inflation is running about 6-7%. Their middle class is growing exponentially. They are an emerging market that is creating millions and millions of people with enough money to start moving to places like Cancun, Cabo, Puerto Vallarta…
In fact, if inflation keeps up at this rate in Mexico, and it stays steady at 2-3% in Canada – it won’t be long before it will be just as expensive here as in parts of Canada. Ah but – the weather will always be better, Si?
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