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If you are thinking about retiring in Mexico, you might immediately picture a beach.
Puerto Vallarta. Playa del Carmen. Mazatlán. Huatulco.
And while Mexico’s beach towns can be wonderful, there is another part of Mexico you should seriously consider:
The central highlands.
This part of Mexico gives you something that can be hard to find along the coast: not so hot days, cooler nights, lower humidity, beautiful mountain scenery, historic architecture, colonial cities, and in many places, much less need to run air conditioning all day.
That can make everyday life much more comfortable. It can also help lower your electricity bill.
There isn’t one “best” place to retire in Mexico. There is a place that is a better fit for you.
And that is what I want to help you figure out. So here are some cities in the central highlands worth booking a scouting trip for. Here is a list with details on each one below.
Mexico’s Central Highland Cities At A Glance
These are reasonable 2026 long-term rental ranges for the types of properties a foreign retiree would realistically consider. They’re not luxury rentals, but they’re also not necessarily the cheapest local housing available.
| City | Typical 1-Bedroom Rent | Typical 2-Bedroom Rent |
|---|---|---|
| Ajijic / Lake Chapala | $650–$1,000 USD | $850–$1,400 USD |
| Guanajuato | $460–$860 USD | $570–$1,430 USD |
| San Miguel de Allende | $630–$1,600 USD | $915–$2,570 USD |
| Querétaro | $370–$740 USD | $510–$1,370 USD |
| Puebla | $315–$715 USD | $460–$1,260 USD |
| Morelia | $400–$700 USD | $550–$900 USD |
| Pátzcuaro | $400–$650 USD | $500–$850 USD |
| Oaxaca City | $550–$900 USD | $700–$1,200 USD |
| Cuernavaca | $500–$850 USD | $650–$1,100 USD |
| Atlixco | $400–$650 USD | $515–$1,030 USD |
| Aguascalientes | $350–$600 USD | $450–$800 USD |
| San Luis Potosí | $350–$650 USD | $500–$850 USD |
| Toluca | $315–$685 USD | $515–$1,260 USD |
And once you’ve narrowed down where you want to live, the Complete Mexico Relocation Guide gives you access to our directory of vetted contacts in these cities and throughout Mexico, including real estate professionals who can help you find rentals, immigration facilitators, healthcare resources, private relocation tour guides, movers, and more.
1. Ajijic and Lake Chapala
If being around other Americans and Canadians would make your transition to Mexico easier, Ajijic is one of the first places you should research.
Ajijic sits along Lake Chapala, about an hour south of Guadalajara.
Foreign retirees have been moving to this area for decades.
That means you have a large community of people who understand exactly what it feels like to move to another country later in life.
You’ll find social clubs, volunteer groups, restaurants, activities, English speaking service providers, and plenty of opportunities to meet other foreigners.
That can be very comforting when you’re first moving to Mexico.
Weather in Ajijic
Ajijic sits around 5,000 feet above sea level.
You generally have warm days and cooler evenings, with much less humidity than you would experience at the beach.
April and May can get hot.
Then rainy season arrives and everything starts turning green again.
Most homes don’t have central air conditioning.
You may find ceiling fans or portable fans are enough for much of the year.
Cost of Living in Ajijic
Ajijic is no longer the inexpensive retirement secret it once was.
Demand from foreign retirees has pushed rents up, especially in Ajijic proper.
So if Lake Chapala appeals to you but Ajijic feels expensive, also look at:
Chapala
San Antonio Tlayacapan
Riberas del Pilar
Jocotepec
San Juan Cosalá
You could end up finding a place you like even more.
Who Ajijic Is Best For
Ajijic could be right for you if:
- You want a large foreign community
- You don’t speak much Spanish yet
- You want a busy social life
- You prefer a smaller town over a large city
- You want Guadalajara’s airport and major medical care within reasonable reach
Need help getting established around Lake Chapala? Through the Complete Mexico Relocation Guide, you get access to our vetted contacts, including immigration facilitators, real estate professionals, healthcare resources, movers, and other people who can help make your move easier.
2. Guanajuato
Guanajuato is one of those cities that makes you stop and stare.
Colorful houses climb up the mountains.
Narrow alleyways wind through the historic center.
Cars disappear into tunnels underneath the city.
And around almost every corner, you’re reminded that you’re living somewhere with hundreds of years of history.
The historic city of Guanajuato is a UNESCO World Heritage Site.
But what I especially like about Guanajuato is that it doesn’t feel like a city built around foreigners.
You are going to hear Spanish.
You’re going to shop in local markets.
And you’re going to feel like you’re actually living in Mexico.
Cost of Living in Guanajuato
Housing can still be reasonable compared with San Miguel de Allende or Ajijic.
Some examples we’ve seen include roughly:
- 8,000 to 15,000 MXN for a simple one bedroom around Centro
- 13,000 to 25,000 MXN for some two bedroom properties in and around Centro
- 8,000 to 12,000 MXN for some two bedroom rentals around Pastita
- 10,000 to 18,000 MXN for some properties around Presa
At today’s exchange rate, 10,000 pesos is around $572 USD or $806 CAD.
Of course, you can also spend much more.
Furnished rentals marketed specifically to foreigners tend to cost more than local long term rentals.
One Important Thing to Know
Guanajuato is hilly.
Very hilly.
Those hills are part of what makes the city so beautiful.
But if you have bad knees, limited mobility, or simply don’t want to climb stairs every day, you need to pay close attention to where you rent.
A property that looks close to Centro on a map could involve a very steep walk.
Who Guanajuato Is Best For
Guanajuato could be right for you if:
- You want Mexican culture and history
- You enjoy walking
- You don’t need a big expat community
- You want relatively mild weather
- You’re willing to learn some Spanish
3. San Miguel de Allende
San Miguel de Allende is probably one of the most famous retirement destinations in Mexico.
And there are good reasons for that.
You have gorgeous colonial architecture, rooftop restaurants, art galleries, wineries, cafes, cooking classes, live music, festivals, and one of the most active foreign communities in the country.
If you are worried that retirement means sitting around doing nothing, San Miguel will quickly prove otherwise.
I’ve met retirees here who have busier social calendars than they did before they retired.
Weather in San Miguel de Allende
San Miguel sits above 6,000 feet.
Days are generally warm and sunny.
Nights can get cold.
And this is something people don’t always think about before moving to Mexico:
Mexican houses can be surprisingly cold inside.
Central heating isn’t common.
So if you’re renting in San Miguel, ask whether the home has fireplaces, gas heaters, electric heaters, or mini split units that also heat.
Cost of Living in San Miguel
San Miguel is not one of Mexico’s cheapest retirement destinations.
Especially if you want to live in Centro.
You can lower your housing costs by moving into neighborhoods farther from the center, but transportation then becomes more important.
Who San Miguel Is Best For
San Miguel could be right for you if:
- You want a very social retirement
- You want a large foreign community
- You love restaurants and culture
- You don’t speak much Spanish yet
- You want lots of organized activities
- You’re comfortable spending more for housing than you might elsewhere in Mexico
If San Miguel is on your shortlist, we have vetted contacts there too. That includes people who can help you with residency, finding a rental, buying property, healthcare, transportation, and the practical things that come with actually moving to Mexico.
4. Querétaro
Querétaro is one of the cities I think more retirees should consider.
Especially if you’re not sure small town life is for you.
This is a major Mexican city.
You have private hospitals, specialists, shopping malls, Costco, restaurants, universities, large supermarkets, newer residential developments, and an international airport.
But you also have a beautiful historic center with plazas, colonial architecture, cafes, and plenty of history.
You really get a little of both worlds.
Healthcare and Infrastructure
Healthcare is one of Querétaro’s biggest advantages.
If you’re moving to Mexico in your 60s or 70s, you may not care about having a giant expat community nearly as much as you care about being able to see a cardiologist, orthopedist, or other specialist without traveling several hours.
Querétaro gives you that.
You’re also only about an hour from San Miguel de Allende.
What About English?
You shouldn’t move here expecting everyone to speak English.
Querétaro has foreigners, but it isn’t Ajijic.
Learning Spanish will make a huge difference in your day to day life.
Who Querétaro Is Best For
Querétaro could be right for you if:
- You want excellent infrastructure
- Healthcare is important to you
- You want big city amenities
- You prefer a more Mexican lifestyle
- You want newer homes and neighborhoods
- You still want a historic colonial center nearby
5. Puebla
Puebla absolutely deserves to be on this list.
I actually think it’s one of the most overlooked larger cities for retirees.
Puebla is close to Mexico City, and its historic center is filled with beautiful churches, colonial buildings, plazas, and Puebla’s famous colorful tile work.
But Puebla isn’t some tiny colonial town.
This is a major city.
That means you get hospitals, shopping centers, restaurants, universities, supermarkets, big box stores, and modern services.
Don’t Forget Cholula
One of the really interesting things about Puebla is that you don’t necessarily have to live in Puebla Centro.
Cholula is right next door.
Some people prefer Cholula because it feels smaller, younger, more relaxed, and a little less hectic while still giving you easy access to everything in Puebla.
That gives you several very different lifestyles without having to move very far.
Who Puebla Is Best For
Puebla could be right for you if:
- You want big city infrastructure
- You love Mexican food and history
- You want to be relatively close to Mexico City
- You don’t need a giant expat community
- You’re willing to use Spanish regularly
This is one I’d put high on your scouting list if you like Querétaro but want something that feels different.
6. Morelia
Morelia is another city I think deserves much more attention from foreign retirees.
The historic center is stunning.
You have beautiful plazas, cafes, restaurants, museums, markets, cultural events, hospitals, shopping, and an airport.
And yet Morelia still feels overwhelmingly Mexican.
Why Consider Morelia?
It gives you a lot of the things people love about San Miguel:
Beautiful architecture.
History.
Culture.
Walkability in the center.
Restaurants.
Cooler highland weather.
But you don’t have nearly the same concentration of foreign residents.
And housing can often give you more for your money.
Spanish is going to help you tremendously here.
Who Morelia Is Best For
Morelia could be right for you if:
- You want beautiful architecture
- You want culture and history
- You need access to big city services
- You prefer fewer foreigners
- You want to improve your Spanish
- You want something less internationally famous than San Miguel
And yes, we have vetted contacts in Morelia too. One of the reasons we built the Complete Mexico Relocation Guide was so you don’t have to blindly search Facebook or Google every time you need an immigration facilitator, realtor, healthcare contact, mover, or another professional.
7. Pátzcuaro
About an hour from Morelia, you find something completely different.
Pátzcuaro.
If you want a slower life in a smaller Mexican city with deep traditions, beautiful architecture, artisan communities, plazas, markets, and cooler weather, Pátzcuaro deserves a look.
It has a very different feel from San Miguel.
Things move slower here.
And for the right person, that is exactly the appeal.
Healthcare in Pátzcuaro
This is one of the cases where you need to be realistic.
Pátzcuaro has healthcare.
But if you have complicated medical needs or see several specialists, you may need to travel to Morelia for some of your care.
That’s not necessarily a deal breaker.
It is simply something you should know before moving.
Who Pátzcuaro Is Best For
Pátzcuaro could be right for you if:
- You want small town living
- You love Mexican traditions and culture
- You prefer cooler weather
- You don’t care about being around lots of foreigners
- You are comfortable traveling to Morelia for some big city services
- You are willing to speak Spanish
8. Oaxaca
If food is one of the great joys in your life, Oaxaca may be dangerous for your waistline.
I mean that in the best possible way.
Mole.
Tlayudas.
Chocolate.
Mezcal.
Markets.
Street food.
Traditional restaurants.
Modern chefs.
Food is part of everyday life here.
But Oaxaca gives you much more than food.
You also have art, history, festivals, galleries, museums, beautiful architecture, Indigenous culture, and a growing international community.
Weather in Oaxaca
Oaxaca sits just below 5,000 feet.
It’s warmer than San Miguel, Toluca, or San Cristóbal.
And spring can get hot.
This is another place where I wouldn’t tell you that you’ll never want air conditioning.
Many older homes don’t have central AC, but fans and mini split units are becoming much more common.
Who Oaxaca Is Best For
Oaxaca could be right for you if:
- Food is important to you
- You love culture and art
- You want a walkable historic center
- You prefer warmer highland weather
- You want some international community without living in an expat bubble
- You’re willing to deal with crowds during major festivals and holidays
9. Cuernavaca
Cuernavaca has been known as the City of Eternal Spring for generations.
And when you spend time there, you understand why.
It’s warm.
It’s green.
It’s lush.
But because of its elevation, you aren’t dealing with the same combination of extreme heat and humidity you’ll find along many coastal areas.
Cuernavaca is also very close to Mexico City.
That’s important.
You can live outside the enormous capital while still having access to some of the best medical specialists, international flights, shopping, and services in Mexico.
What Living in Cuernavaca Is Like
This isn’t necessarily a city where you live in one compact downtown and walk everywhere.
It’s more spread out.
You’ll find gated communities, condos, traditional neighborhoods, and beautiful homes with gardens and pools.
Depending on where you live, having a car or using taxis and ride services may make your life easier.
Who Cuernavaca Is Best For
Cuernavaca could be right for you if:
- You love warm weather
- You don’t like beach humidity
- You want greenery
- You want to be close to Mexico City
- You want good healthcare access
- You like the idea of having outdoor living space
10. Atlixco
Atlixco doesn’t get anywhere near the attention San Miguel or Ajijic gets.
And that might be exactly why you like it.
Located in Puebla state, Atlixco is known for flowers, nurseries, mountain scenery, its historic center, and views toward Popocatépetl.
You’re also close to the city of Puebla.
That is a major advantage.
You can enjoy a smaller city and a slower pace of life without being several hours away from major hospitals, shopping, and other services.
Who Atlixco Is Best For
Atlixco could be right for you if:
- You want a smaller Mexican city
- You like mild weather
- You want mountain scenery
- You don’t need a big expat community
- You want Puebla’s amenities within reach
- You want something less discovered by foreigners
This is another place where Spanish will make your life much easier.
11. Aguascalientes
Aguascalientes isn’t usually one of the first cities foreigners mention when talking about retirement in Mexico.
And I think that’s exactly what makes it interesting.
This is a modern Mexican city with shopping centers, restaurants, parks, hospitals, universities, supermarkets, and good infrastructure.
But it doesn’t revolve around foreign retirees.
You can live a comfortable modern lifestyle while still being much more immersed in everyday Mexican life.
Cost of Living in Aguascalientes
One of the biggest advantages can be housing.
Your money can often go considerably further here than in famous retirement destinations like San Miguel or Ajijic.
You also get a dry highland climate rather than tropical humidity.
Who Aguascalientes Is Best For
Aguascalientes could be right for you if:
- You want a modern city
- You don’t care about having lots of foreigners nearby
- You want lower housing costs than the most famous expat destinations
- You prefer dry weather
- You want strong infrastructure
- You are serious about integrating into Mexico
If you’re interested in one of Mexico’s lesser known cities, don’t assume you’re on your own. Our vetted contact directory covers cities throughout Mexico, including many of the places foreigners are only beginning to discover.
12. San Luis Potosí
San Luis Potosí is another city that doesn’t get enough attention.
You have a beautiful historic center, universities, private hospitals, shopping centers, restaurants, an international airport, and a large modern city surrounding the older colonial core.
Like Aguascalientes, this isn’t a city where everyone is catering to foreign retirees.
You’re living in a Mexican city.
That means Spanish becomes more important.
But you also tend to get more housing choices without paying the premium that often comes with living in a famous expat destination.
Who San Luis Potosí Is Best For
San Luis Potosí could be right for you if:
- You want a major city
- You need healthcare and modern services
- You want a dry climate
- You want fewer foreigners
- You want a more immersive Mexican experience
- You’d rather discover somewhere before everyone else does
13. Toluca
Toluca may be one of the biggest surprises on this entire list.
It’s not an expat destination.
And people aren’t moving here because they saw a dreamy Instagram photo.
But Toluca offers something that can be very valuable:
Affordable big city living very close to Mexico City.
You have universities, hospitals, supermarkets, shopping, restaurants, parks, and essentially everything you need for daily life.
And housing can be much less expensive than in Mexico’s famous retirement communities.
Cost of Living in Toluca
We’ve seen rentals around the Toluca area starting at roughly 7,000 MXN per month.
At today’s exchange rate, that’s approximately $400 USD or $564 CAD.
Of course, those are starting prices.
The neighborhood, home, condition, and whether it’s furnished all matter.
Getting From Toluca to Mexico City
Toluca has become much better connected to Mexico City.
The El Insurgente interurban train now connects the Toluca area with Observatorio in Mexico City.
That makes Toluca much more interesting than it was a few years ago.
Weather in Toluca
Toluca is cold compared with what many foreigners picture when they think of Mexico.
You’re at a high elevation.
Winter mornings can be chilly.
And you’re definitely going to want Spanish here.
Who Toluca Is Best For
Toluca could be right for you if:
- You want an affordable big city
- You don’t care about living around foreigners
- You prefer cooler weather
- You want access to Mexico City
- You need big city healthcare and services
- You really want to immerse yourself in Mexican life
Which Highland City Is Best for You?
That depends entirely on what you need.
If You Want an Established Expat Community
Start by researching:
- Ajijic
- San Miguel de Allende
If Healthcare and Infrastructure Are Priorities
Take a closer look at:
- Querétaro
- Puebla
- Morelia
- Aguascalientes
- San Luis Potosí
- Toluca
If You Want Culture and Historic Charm
Consider:
- Guanajuato
- Morelia
- Oaxaca
- San Miguel de Allende
- Puebla
- Pátzcuaro
If You Want a Smaller and Slower Lifestyle
Look at:
- Pátzcuaro
- Atlixco
- Ajijic
If Lower Housing Costs Matter More Than an Expat Community
Research:
- Toluca
- Aguascalientes
- San Luis Potosí
- Guanajuato
- San Cristóbal de Las Casas
If You Prefer Cooler Weather
Put these on your list:
- Toluca
- San Cristóbal de Las Casas
- Pátzcuaro
- Guanajuato
- San Miguel de Allende
That’s why I don’t think you should ever let someone simply tell you:
“This is the best place to retire in Mexico.”
Best for whom?
Your priorities matter.
Don’t Choose a City From YouTube Alone
I obviously make a lot of videos about living in Mexico. But I would never tell you to move somewhere because you liked one of my videos.
You have to experience the city yourself.
Before you commit to moving somewhere, spend some time living as normally as possible.
What to Do on a Scouting Trip
- Go grocery shopping.
- Walk the neighborhoods.
- Look at actual rentals.
- Visit the hospital you would use.
- Ride the local transportation.
- Go outside after dark.
- See how far the neighborhood is from the things you’ll use every week.
- Check how noisy it is.
- See how the weather actually feels to you.
And please don’t spend your entire scouting trip sitting around the main plaza drinking margaritas.
That’s vacation. You are trying to figure out whether you could actually live there.
Need Help Scouting a City?
One of the best things you can do before moving is take a private relocation tour.
Mexico Relocation Guide works with recommended local guides in more than 60 cities across Mexico.
These aren’t sightseeing tours. They’re designed to help you understand what it would actually be like to live there.
Depending on the city, you can explore neighborhoods, see different types of housing, learn about hospitals and healthcare, visit grocery stores, understand transportation, and ask questions about everyday life.
Learn more about our private relocation tours in Mexico.
Get Help With the Actual Move
Finding the right city is only the beginning.
Then come the questions:
- How do you get residency?
- Who can help you find a long term rental?
- How do you know whether a realtor is trustworthy?
- Where do you find a good immigration facilitator?
- What about healthcare?
- Moving your belongings?
- Opening a bank account?
- Getting an RFC?
- Finding insurance?
This is exactly why I created the Complete Mexico Relocation Guide.
We’ve helped thousands of people understand the process of moving to Mexico, and when you get the guide, you also get access to our directory of vetted contacts throughout Mexico.
That includes immigration facilitators, real estate professionals, healthcare resources, movers, insurance contacts, private relocation tour guides, legal and tax professionals, and many more.
You don’t have to start your move by randomly searching Facebook and hoping the person you’re talking to knows what they’re doing.
Learn more about the Complete Mexico Relocation Guide here– and get $50 OFF FOR A LIMITED TIME! Use Code WOW10MRG
Final Thoughts
Mexico can be an incredible place to retire.
But Mexico isn’t one lifestyle.
Ajijic is nothing like Toluca.
Pátzcuaro is nothing like Querétaro.
And San Miguel is nothing like San Cristóbal.
That’s actually one of the best things about Mexico.
You have choices.
Do your research.
Visit several places.
Be realistic about your budget, healthcare needs, climate preferences, and Spanish.
And then choose the place that feels right for you.
