Mexico City, September 9, 2026 – The rising cost of housing is repositioning Mexico City on the international cost of living map. The average monthly rent for an apartment in the Mexican capital has reached $936, surpassing several European capitals, according to the Working Abroad Index 2026. This trend contrasts sharply with the city’s remarkably low public transportation costs, which remain among the most affordable globally.
Mexico City’s Rent Outpaces European Peers
The Working Abroad Index 2026, compiled by the European neobank bunq, analyzed living and working expenses across 74 cities worldwide. Its findings highlight that Mexico City’s average rent of $936 per month is higher than Bucharest ($587), Athens ($684), Vilnius ($762), Budapest ($799), and Nicosia ($799).
This upward trajectory in rental prices reflects a significant shift in the city’s economic landscape, making it a more expensive place to live in terms of housing compared to various European counterparts. The index suggests that the influx of remote workers and international residents in certain areas contributes to this surge.
Public Transport: A Global Bargain
In stark contrast to housing costs, Mexico City boasts one of the world’s most economical public transport systems. The index reports an average monthly expenditure of just $12.70 for public transport, ranking it as the third lowest among all analyzed cities. Only Luxembourg, where public transport is free, and Ho Chi Minh City offer more affordable options.
Joe Wilson, bunq’s evangelism director, noted this unusual combination: “While rents are approaching European levels, the low cost of transportation significantly reduces residents’ overall monthly expenses.” This unique balance presents a complex picture for residents and expatriates alike, where high housing costs are somewhat offset by other affordable amenities.
Overall Cost of Living and Regional Variations
Excluding co-working spaces, the total cost of living in Mexico City amounts to $1,399 per month. This figure is almost identical to Seoul’s reported $1,410, a major technological and financial hub in Asia. This comparison underscores Mexico City’s growing economic significance and its evolving position in the global cost of living index.
The study also examined other Mexican cities, revealing notable regional differences. San Miguel de Allende, another popular destination for remote workers and international residents, recorded an average rent of $900. It also stood out for having the lowest utility costs in the study, at $43.56 per month. Mérida’s average rent was $599, while Oaxaca’s reached $629.
Significantly, Oaxaca consistently ranked among the five cities with the lowest overall cost of living in the measurement. These variations indicate that while certain urban centers like Mexico City and San Miguel de Allende are experiencing European-level housing costs, other regions within Mexico maintain a much lower cost of living.
Record Demand Pressures Mexico City’s Rental Market
The report attributes the escalating rental prices in Mexico City and San Miguel de Allende to record demand, particularly from remote workers and international residents. This demographic shift is creating pressure on the housing market, driving up rental rates to levels comparable to or exceeding those in several European capitals.
Despite these rising housing costs, other expenses in these cities generally remain comparatively low, offering a mixed bag for residents. The findings suggest that while the allure of Mexico City continues to attract a diverse population, the economic realities of housing are rapidly changing, impacting affordability and urban dynamics.
Source: realestatemarket.com.mx
