The first question most people ask is "how much does it cost to rent a house in Mexico?" You'll find a wide range of prices and kinds of houses to buy and rent. Since I'm a renter (and chances are you will be too when you first move to Mexico), my comments pertain to renting. They are also subjective, based mostly on my experience and the experiences of other Mexicophiles I've met.
If you want a modern home with amenities you're accustomed to in the U.S. or Canada, you're going to pay "almost" as much in rent as you would at home. However, if you're willing to live in a traditional Mexican neighborhood (vs. an enclave of expats), rent will be lower.
In the city of Oaxaca where I lived during the winter of 1998 and will be living for most of the year of 1999, you can find a two-bedroom casa for $200 a month, if you put time into searching for it. The refrigerator and stove will probably be small and you may not have a telephone. Installation of phone is about $400, a one time charge. Rentals near the zocalo (main plaza) are more expensive - $400 to $500, depending on condition and size. If you rent on a long-term basis, you can negotiate a lower rent. Generally, seasonal rentals cost more, just as in the States.
Most likely, you're not going to find the "perfect" place to live through the Internet, because most people who advertise on the 'Net know the cost of living in industrialized countries and charge accordingly. However, the 'Net is a place to start if you MUST have a home locked in before you go. There are Internet discussion forums and e-mail discussion groups where you can find helpful people. You'll have more luck if you give as many details as possible - i.e., if you have decided on the area, the price range, and general features you seek in a residence. Don't say, "I want to move to Mexico can you help me find a place to live."
I recommend Mexico Connect forum. Participants live throughout the world, many in the GUADALAJARA area.
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