Editor's Note: This story originally appeared on Live and Invest Overseas.
Most people who move to Mexico make a beeline to places like Playa del Carmen and Puerto Vallarta. While both are great (trust me, I’ve lived in both), you feel like you’re living in somewhat of an expat bubble.
If you’re looking for a place without a Señor Frog’s in sight, you’ll need to head inland.
Keep reading to learn more about a Mexican retirement destination that is both budget-friendly and rich in culture.
Welcome to Oaxaca City
San Miguel de Allende is a popular choice, but it’s firmly on the expat radar. It also feels more like a big town than a small city. Although it’s a beautiful place, it isn’t the most exciting.
Those looking for charming colonial architecture with a vibrant culture that’s more Mexico than spring break should turn their gaze towards Oaxaca City. It checks a lot of the boxes: a moderate climate, reasonable prices, flight connections to the States, and high-quality health care.
Also, it isn’t super touristy or flooded with gringos. It’s becoming more of a popular destination, sure, but the city does not rely on tourism as much as other expat favorites do.
Why Oaxaca is ideal
After traveling all over Mexico during the past eight years and living in several destinations as a digital nomad, I’ve found Oaxaca to be an ideal location.
Beyond the obvious draws of nice weather and a low cost of living, this is a fascinating city with a lot to offer.
Oaxaca is the capital of the southwestern Mexican state of the same name. It’s famous for its cuisine (such as the versatile mole sauce) and its potent libation, mezcal. Your taste buds are in for a treat if you relocate here.
In its bustling Centro, you’ll find colorful colonial buildings and even more colorful clothing and wares from the various indigenous groups that call the area home. The state of Oaxaca is home to about a third of Mexico’s indigenous population.
Festivals and hiking abound
Traditional festivals are a big deal, including Day of the Dead celebrations. People come from all over the world to view the elaborate ofrendas (altars) for this important holiday.
This city is surrounded by mountains, making for a stunning backdrop and plenty of opportunities for adventure. It doesn’t take long to reach the ancient ruins at Monte Alban or the jaw-dropping petrified waterfalls at Hierve el Agua.
There are some great options for hiking in the area, and it’s not that far to the chilled-out beach towns on the Oaxaca coast. It’s a hair-raising ride through the curvy mountain roads, but a quick flight is also an option.
Big city conveniences in a small town
Compared to places like Mexico City or Guadalajara, Oaxaca feels like a small town. It’s easy enough to get around on foot, and local buses are cheap and easy to figure out if you need them.
You’ve got all the conveniences of a big city without many of the annoyances, and it’s got more to offer in terms of culture than places like PV or San Miguel.
While not as well connected as other Mexican destinations, Oaxaca does have an international airport. At the moment, there aren’t many options for direct flights to the States or Canada… but with its increasing popularity, more flight options will be available soon.
Oaxaca is home to a sizable expat community of over 20,000, with most hailing from the States and Canada. All sorts of events are available, so it’s easy to get out and meet people. Whether you’re into yoga, books, or hiking, there’s a club or class for you here.
Affordable living in Oaxaca
The low cost of living is a big draw. If you’re up for living like a local, your money will go a long way, especially if you’re earning dollars and spending pesos.
Those who find a simple apartment, stick to walking or public transportation, and shop in local markets can live comfortably for a fraction of what it costs up north.
A couple with modest tastes can easily live on a monthly budget of $2,000 here, and that includes rent. Add another $500 to that, and you can enjoy a few nights out on the town and occasional weekend trips to the coast or other nearby towns.
Top choice for American expats
Aside from Oaxaca’s unique appeal, Mexico in general is a top choice for Americans and Canadians. There are good reasons why it’s home to more American expats than any other country.
It’s geographically close … so close, in fact, that it’s one of the few overseas retirement destinations you can pack up your car and drive to. It has familiar stores, brands, conveniences, and so on. It’s also easy to set up life in Mexico from a residency perspective.
The pastel-colored buildings of Centro with the rolling mountains in the background … The air in the local markets filled with a variety of intriguing aromas … That smoky taste of a good glass of mezcal … This is life in Oaxaca.
If you’re looking for city amenities with a small-town feel, a moderate climate, and a low cost of living, and if you love Mexican culture — the art, the food, the festivals — then you’re going to love Oaxaca.
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