The top overseas retirement destinations for Americans are Mexico, Canada, the United Kingdom, Puerto Rico, and Germany.
In particular, International Land Alliance reports that the influx into Mexico has been driven by international buyers from California seeking affordable alternatives for their retirement.
Top retirement destinations
According to an article by Unbiased, Mexico tops the list as an international retirement destination for Americans. These are the respective figures by destination:
- Mexico: 799,248.
- Canada: 273,226.
- United Kingdom: 170,771.
- Puerto Rico: 159,515.
- Germany: 152,639.
Comparative advantages
International Land Alliance points out that, for years, retirees from the United States and Canada have been choosing Mexico. They see it as an accessible destination with good weather and close to their communities in North America.
Thanks to these advantages, Mexico has positioned itself as the top overseas retirement destination for older Americans. This fueled a real estate boom that peaked in 2005 and 2006.
This growth spread from Playas de Tijuana-Rosarito and Los Cabos throughout the Baja California peninsula. It also advanced from Puerto Peñasco, Sonora, to Mazatlán, Sinaloa.
In the south, real estate development concentrated its strength in the corridor linking Cancún with the Riviera Maya.
Geographic proximity
Mexico remains an attractive retirement option for Americans over the age of 50. It offers a lower cost of living, lower healthcare costs, and proximity to family and friends in the United States.
More than half of those surveyed said their main motivation for buying a home in Mexico was the desire to have a house on the beach or near the coast. In the United States, that possibility would be virtually unattainable.
In addition to Americans and Canadians, Baja California is seeing a steady increase in demand from Japan and Europe.
On the other hand, Kiplinger highlighted in April 2025 that Mexico combines a low cost of living with affordable real estate. Examples of this are houses in Guanajuato for less than $150,000. It also highlights affordable medical care and tax advantages such as tax exemption on retirement income sent from the United States, along with property tax discounts.
Overall, the Mexican real estate market continues to grow rapidly. This dynamism is partly explained by foreign investment, the creation of trusts in 1993, and the opening up of the market generated by NAFTA in 1994. Added to this are competitive land prices and the expansion of shopping centers and maquiladoras throughout the country over the last decade.