City Comparison

Mexico City vs Tempe

Cost of Living Comparison · 2026

Mexico City

Mexico
40
Very Affordable
$155,000
Median Home
$575/mo
Median Rent
$13,500
Median Income

Tempe

Arizona
106
Above Average
$400,000
Median Home
$1,600/mo
Median Rent
$56,068
Median Income

The Verdict

62.3%

The cost gap between these cities is 62.3%, with Mexico City being the more affordable option. A $75,000 income in Mexico City has equivalent purchasing power to $198,750 in Tempe.

Category-by-Category Breakdown

Index values · National average = 100 · Lower is more affordable

Housing
28
Mexico City
114
Tempe
Groceries
42
Mexico City
100
Tempe
Utilities
30
Mexico City
96
Tempe
Transportation
35
Mexico City
103
Tempe
Healthcare
25
Mexico City
95
Tempe

Salary Equivalence

A $75,000 salary in Mexico City has the same purchasing power as $198,750 in Tempe.

Conversely, $75,000 in Tempe equals $28,302 in Mexico City.

Living in Mexico City vs Tempe

Housing Costs

Mexico City's housing index of 28 is lower Tempe's 114, translating to median home prices of $155,000 vs $400,000. The $245,000 difference in home prices means roughly $15,924 per year in additional mortgage costs at current rates. Renters face a similar gap: $575/mo in Mexico City compared to $1,600/mo in Tempe, a monthly difference of $1,025.

Grocery & Food Costs

Grocery expenses index at 42 in Mexico City and 100 in Tempe. A household spending the national average of $475/month on groceries would pay approximately $200/month in Mexico City vs $475/month in Tempe. Mexico City offers a meaningful advantage on everyday food costs, saving roughly $3300/year.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 30 in Mexico City and 96 in Tempe. Monthly utility bills average approximately $120 in Mexico City vs $384 in Tempe. Climate differences between the two cities drive much of this gap, with heating and cooling costs varying substantially by region.

Healthcare

Healthcare costs index at 25 in Mexico City and 95 in Tempe. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 70-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $13,500 in Mexico City and $56,068 in Tempe. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $33,750 and $52,894 respectively. Tempe residents come out ahead in real purchasing power.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $315/month to housing in Mexico City vs $1,308/month in Tempe. In Mexico City, median rent of $575/mo exceeds this threshold, suggesting renters may feel stretched. In Tempe, median rent of $1,600/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Housing, where the gap is 86 index points — focus your budget analysis there.

Frequently Asked Questions

Mexico City is 62.3% more affordable overall with an index of 40 vs 106.
A $75,000 salary in Mexico City has equivalent purchasing power to approximately $198,750 in Tempe, based on the cost of living difference.
Mexico City's housing index is 28 with median homes at $155,000, while Tempe's is 114 with median homes at $400,000.

Moving & Relocation Resources

Moving PlannersFinance BooksBudget Planners

As an Amazon Associate we earn from qualifying purchases