Mexico City is experiencing a growing phenomenon: an increasing number of U.”S. citizens are choosing to settle in the Mexican capital. The motivations are diverse, but all converge on a better quality of life and more affordable opportunities, according to recent studies and reliable sources.
A Growing Flow
The U.S. State Department reports that the number of American citizens living in Mexico increased by 70% between 2019 and 2022, reaching 1.6 million people.
Although Mexico’s 2020 census recorded 797,000 residents born in the U.S., other estimates put the real figure higher, considering both permanent and temporary residents. Specifically, in Mexico City, it is estimated that more than 700,000 American citizens live there, making it one of the largest U.S. communities outside the United States.
The Mexico City Appeal
According to Nasdaq, the main reasons Americans are drawn to the capital include affordable rents, a low cost of living, job opportunities, easy immigration processes, and more affordable healthcare.
Concrete examples include: monthly rent for a one-bedroom apartment in the city center at around USD 822, and a monthly cost of living (excluding rent) of USD 808 per person — or USD 2,672 for a family of four.
Additionally, the pandemic boosted remote work, sparking a wave of “digital nomads” who see Mexico as an opportunity to live “better and cheaper” while keeping their incomes in dollars.
Tax, Cultural, and Quality of Life Advantages
Many retirees relocate to Mexico for its proximity, quality of life, and access to healthcare — including the ability to cross the border to use their Medicare benefits.
Added to that, a more relaxed lifestyle, a vibrant cultural scene, and the value for money make many feel “at home, but at a slower pace,” according to reviews on the Reddit platform.
Side Effects: Gentrification and Social Tensions
Not everything is positive. The massive arrival of foreigners — especially in neighborhoods like Roma and Condesa — has had negative impacts:
Between 2018 and 2023, rents in some neighborhoods rose by up to 30%, while residence visas in Mexico City increased by about 70%. These dynamics have sparked neighborhood protests denouncing gentrification, rising prices, and the loss of local cultural identity.
Mexico — and especially Mexico City — has become an attractive destination for Americans, motivated by lower living costs, vibrant culture, accessible services, and the flexibility of remote work. However, this trend calls for balance: preserving cultural heritage and ensuring affordable housing for locals, while preventing development from turning into displacement.
Related: Americans make up the largest migrant population in Mexico, a growing one since the pandemic
Mexican Press Agency is part of ALMA, which is dedicated to news and information about Mexico and Mexicans in the United States and is a fiscally sponsored project of Social Focus, a 501(c)(3) nonprofit organization based in Redwood City, California.
