People hear "retire in Mexico" and they picture either a luxury resort or a shack on a dirt road. San Felipe is neither. It is a real town with real costs, and those costs happen to be dramatically lower than what most Americans and Canadians are paying right now.
We talk to retirees here every week. Some moved from San Diego. Some from Phoenix. A few from as far as Alberta. The specifics vary, but the math is consistent: their money goes two to three times further in San Felipe than it did back home.
Here is what it actually costs, category by category.
Housing
If you already own your home, your monthly housing cost is close to zero. Property taxes in Baja California run 0.1% to 0.3% of assessed value. On a typical San Felipe home, that is $100 to $300 per year. Per year. Not per month. People who just moved from California read that number twice.
The fideicomiso (bank trust for foreign-owned property) costs about $500 per year in maintenance fees. So your total annual housing overhead on a paid-off property is roughly $600 to $800. Compare that to $6,000+ in property taxes on a comparable California home.
If you are renting, a furnished two-bedroom in San Felipe runs $500 to $900 USD per month. Beachfront adds a premium, but even then you are unlikely to break $1,200.
Groceries
A couple spending $800-1,000 per month on groceries in the U.S. will spend $300 to $500 here for the same quality and quantity. The local markets sell produce at prices that feel like a mistake. Avocados for 15-20 pesos (less than a dollar). A kilo of tomatoes for 25 pesos. Limes by the bag for next to nothing.
Meat and seafood are similarly cheaper. Fresh shrimp from the boats is a fraction of what you would pay at a U.S. fish counter. Chicken and beef are roughly 40-50% less than stateside prices.
The one exception: imported American brands. If you need your specific brand of cereal or peanut butter from back home, you will pay a markup at the stores that stock it. Most people adapt and find they prefer the local options anyway.
Utilities
Electricity is the big one. CFE (the Mexican electric company) uses a tiered rate structure, and in summer when you are running AC, your bill can climb. Expect $100 to $200 per month in peak summer, $30 to $60 in winter. Water is cheap -- often under $10 per month. Internet runs $30 to $50 for decent service. Gas (propane for cooking and hot water) is around $20 to $30 per month.
Total utilities for a typical home: $70 to $140 per month outside of summer, $150 to $280 during the hot months.
Healthcare
This is the one that surprises people the most. A doctor visit in San Felipe costs $25 to $50 USD. No insurance, no co-pay, no waiting six weeks for an appointment. You walk in, you see the doctor, you pay cash. Dental work is 50-70% less than U.S. prices. Prescription medications that cost hundreds in the States are available for a fraction at Mexican pharmacies.
For anything serious, Mexicali (two hours north) has full hospitals with specialists. Many San Felipe residents also maintain U.S. health insurance and drive to Yuma or San Diego for major procedures. The proximity to the border makes this practical in a way that more remote Mexican towns cannot offer.
The Monthly Budget
Here is what a typical retired couple at La Hacienda spends per month, assuming they own their home:
| Category | Monthly Cost (USD) |
|---|---|
| Property tax + fideicomiso | $50-65 |
| Groceries | $300-500 |
| Utilities | $70-280 |
| Dining out | $150-300 |
| Gas / vehicle | $50-100 |
| Healthcare | $25-75 |
| Internet + phone | $40-60 |
| Total | $685-1,380 |
That is not a typo. A couple can live comfortably in San Felipe for under $1,500 per month if they own their home. Add $500-900 for rent if they do not. Even with rent, you are looking at $2,000-2,300 per month for a beachfront lifestyle that would cost $5,000+ in Southern California.
What the Numbers Do Not Tell You
The cost of living is the easy sell. The harder thing to explain is what it feels like to wake up without the financial pressure. People who were stressed about money in the States come here and that weight lifts. Their Social Security check that barely covered rent in Arizona now covers everything with room to spare. That changes people. They relax. They get healthier. They start doing things they put off for decades.
If the numbers make sense to you and you want to see what beachfront property at La Hacienda looks like, reach out. We will walk you through the community and introduce you to people who made the move. They will tell you the same thing we just did -- except with better stories.