The Cost of Living in Los Cabos, Mexico vs. Major U.S. Cities
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Is Los Cabos cheaper than living in the U.S.? For daily expenses, yes. According to Numbeo’s October 2026 data, everyday costs in Cabo San Lucas are about 47% lower than in Los Angeles (excluding rent), rent is about 62% lower, and restaurants about 55% lower. But not everything is cheaper: luxury homes in gated golf communities are priced in U.S. dollars, summer electricity with air conditioning can be expensive, and Medicare doesn’t work in Mexico. This guide compares real prices for buyers from California, Texas and Arizona.
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| -47% Daily costs, excluding rent |
-62% Rent |
| -55% Restaurants |
-41% Groceries |
| Item | Los Angeles | Cabo San Lucas |
|---|---|---|
| Meal at an inexpensive restaurant | $26.50 | $10.32 |
| Dinner for two, mid-range restaurant | $120.00 | $48.88 |
| Basic utilities (915 sq ft apartment) | $282.44 | $84.23 |
| Internet (60+ Mbps) | $80.07 | $31.72 |
| Rent, 1-bedroom in the center | $2,544 | $1,180 |
| Rent, 3-bedroom in the center | $5,497 | $2,491 |
| Eggs (12) | $5.65 | $2.29 |
| Gasoline (1 liter) | $1.58 | $1.45 |
Source: Numbeo, updated October 2026. Prices in USD.
Coming from Phoenix or Houston? Both are cheaper than Los Angeles, so your savings in Cabo will be smaller than the numbers above, but restaurants, rent and services are still usually lower in Cabo.
| Expense | What to Know |
|---|---|
| Luxury homes | Homes in gated golf communities like Palmilla, Querencia or Quivira are priced in U.S. dollars and aren’t “cheap.” The savings are in daily life, not always in the purchase price. |
| Summer electricity | The utility estimate above is for a small apartment. A house running air conditioning from June to October can pay much more. |
| HOA fees | Gated communities charge monthly HOA fees for security, landscaping and common areas. Ask for them before you buy. |
| Imported products | U.S. brands and imported goods can cost the same or more than at home. Local products are where you save. |
| Health insurance | Medicare isn’t accepted in Mexico. Most U.S. residents carry international health insurance. |
Private hospitals in Los Cabos are usually less expensive than in the U.S., and the main ones on the Corridor have English-speaking staff. Private hospitals often ask for upfront payment or a card hold, even if you have insurance. See which hospitals are closest to each community in Hospitals Near Palmilla.
Your monthly costs depend a lot on the community: HOA fees, house size and how much you use the air conditioning. If you’re retiring, compare communities in Top Retirement Communities in Los Cabos. To compare every area, read Best Neighborhoods to Live in Los Cabos.
For daily life, yes. Numbeo puts everyday costs in Cabo San Lucas about 47% lower than Los Angeles, excluding rent, and rent about 62% lower.
About $84 a month for a small apartment, per Numbeo. A house with air conditioning in summer will pay more.
No. Most U.S. residents carry international health insurance.
Not always. Luxury homes in gated golf communities are priced in U.S. dollars. The biggest savings are in daily expenses.
Yes. Near the coast, foreigners buy through a bank trust (fideicomiso), which gives full ownership rights.
We help buyers from California, Texas and Arizona find a home and a community that fit their budget and lifestyle.
Sources: Numbeo, Cost of Living Comparison Between Los Angeles and Cabo San Lucas (updated October 2026). Information verified October 2026.
Disclaimer: Prices are averages, change often and depend on the exchange rate. Your costs will vary. Karla & Erick are MLS members with Century 21 Paradise Properties.
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Thinking of moving to Baja California Sur, México?
Karla Andreu and Erick Flores (Century 21) guide U.S. & Canadian buyers, expats, retirees, and families through every step.
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