My Trip to Aguascalientes, Mexico

OnTheBall Travels (Aguascalientes)

If you have a young family, that’s the place to be in Mexico

Many foreigners have been moving to Mexico over the last 5 years as a way to escape high costs of living, better food, better weather and escaping tyrannical policies. However, when most think of Mexico, they often stay within the main areas of Mexico City, Riviera Maya and Puerto Vallarta. Although, as long as Spanish is not too large of an issue, we believe we have discovered a place that one ought to consider, whether a Mexican national or a foreigner. Admittedly, this state/city was one of my favourite places in Mexico & I believe its fair to say I’ve travelled a great deal coast-to-coast.

Aguascalientes is a small state that is generally unknown. It’s quiet, tucked away in the Central/Pacific side of Mexico which is economical, safe(r) and carries a lot of beautiful Spanish architecture. It literally translates to ‘Hot Waters’, maybe thats an easier pronunciation for you. [Hot Waters characterized by their hot springs].

Stats

It is one of the smallest states in Mexico, joining Mexico City, Tlaxcala & Morelos as being the smallest and holds a population of 1,425,607. Of these, about 968,000 live in the capital region & city also named Aguascalientes.

They hold a very young work force, with men slightly favouring women in employment

The state has seen a net migration over the last 5 years of 61,000 residence. No surprise, they come from Zacatecas and Jalisco (their neighbours) first and foremost with third and fourth place being Ciudad de Mexico and Estado de Mexico, respectively, from what I can gather, for employment.

Shockingly, only 50% of households hold internet access and only a third of them reside in a house with 4 rooms. Chances are you’d find the population quite uneducated

San Marcos

The place has the famous San Marco festival every year which brings a ton of travellers from all over the world. There are a lot of festivities, concerts, acts, rides, it’s really interesting and beats Disney if you ask me.

It has been going on for over 80 years, filled with history and traditions.

Economy is Growing

Aguascalientes scores in the top 5 of Mexican states seeing the most economic growth rates. The products with the highest level of international sales in 2023 were in Parts and Accessories of Motor Vehicles (US$1.59B), Apparatus for Filtering or Purifying Liquids or Gases (US$357M), and Instruments and Apparatus for Measuring or Checking the Flow, Level, Pressure or other Variables of Liquids or Gases (US$322M). Piston Engines, Rotary Engines or Reciprocating Engines are also a main exporter for the small country. Corporations such as Mercedes, FengMei and Hersey have recently set up shop, offering more jobs for locals

As of 2023, their exports totalled: US$11.1B with an unemployment rate of only 3.56%. Interestingly however, there are 38.8 % considered as informally employed.

Their economy is very much involved with manufacturing, industry and parts-making with their number on buyer being overwhelmingly the United States.

The United States is the largest investor into this small state as well, with the other investor countries being Germany, UK & Sweden. It’s worth noting that the period January to March 2024, FDI in Aguascalientes nosedived to -US$89.6M, distributed in reinvestment of earnings (US$224M), equity capital (US$0), and inter-company debts (-US$314M). Zooming out however, from January 1999 and March 2024, Aguascalientes accumulates a total of US$734B in FDI.

Aguascalientes is also known for their railroad (you can always hear it) with a lot of history is tied to it. It was a crucial part of Mexican history as a way to transport munitions, fuel and metals going back to the revolution. Upon its foundation, the Mexican state was known for its silver mining. While the silver mines are largely in their Northern state of Zacatecas (where Aguascalientes was previously a part), some still remain, although the future of mining in Mexico is a “wait and see” business.

In so far it matters, the state reliably votes conservative and takes a pro-business approach rather than one who wants to extort and steal from producers.

Safety

Besides the territories with conflicts [between Mexican Narco groups], the areas with the highest crime rates are the areas with the most amount of foreigners, generally. Walk down 5th Avenida in Playa Del Carmen and you’ll see what I mean–if you look like a foreigner you will be approached to ask if you want to buy drugs. People buy. Then there’s a fight for those buyers. The cycle repeats. Look at this chart below of homicides by concentration and total number.

I have been tracking crime rates in Mexico for the last few years, so if you wish to inquire about a state in Mexico, please ask!

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One benefit of Aguascalientes is that they have had relatively low crime rates but… this could change soon

We have been seeing some cartel presence showing themselves in the state lately. The New Generation Cartel has warned the Sinaloa Cartel as well as other narco figures to join them or else with such messages being displayed 6-10 times throughout the state. Moreover, a deal with respect to large land properties went to court and somebody hadn’t liked the idea. A video had surfaced showing the cold-blood murder of the opposition lawyer in the middle of the restaurant. This was in the middle of the day while he was seated with 6 other men eating. Scary stuff!

Edit: Crime rates are still low for the region but there has been a higher occurrence of homicide throughout the state (though the rate is low).

The most dangerous area in the entire state is the capital. With a rate of only 4.3 (homicides per 100000). This is slightly up and still they have about 6-8X less homicide than Chicago. About the same rate as London, UK but about an 11th of the population.

This was a place where I’ve walked home after some wine, late without any issues at all and have heard numerous reports of ladies doing the same after midnight. In other areas of Mexico, eh, precautions are better. Speaking of wine, they are a major wine producer in Mexico–one of 7 throughout the country. If this interests you, please message me to discuss.

Even of these homicides throughout the state, my guess is that 95% of these are between groups that are actively engaged in criminal activity.

Impressions

• Not many foreign tourists outside of San Marcos festival travels to the state, therefore it doesn’t have the tourist paparazzi of Cancun & Tulum. English is spoken in restaurants more-so than other areas, but generally it’s low.
• It is clean and very Spanish. Similar to Puebla, it has some fantastic catedrals and cobblestone streets. In fact, I would say it is one of the most European-looking Mexican places I have been, they have kept this intact. I hope the photos above have elucidated this.
• It is a place that other locals have felt safe. Anecdotally, we know of some people who have walked home late without any issue (ourselves included) which may not be possible in other areas in the country.
• There are many young families around and the place would not become boring with many restaurants, forms of entertainment, shopping, parks and museums.
• With the exception of the frequent trains, it’s quieter and more peaceful than other areas of the country. Perhaps this is due to its smaller population, but it felt more low-key.
• It likely will not be a tourist destination for foreigners, but it may be a great place for locals to move for employment (similar to Queretaro now). Real Estate is one of the cheapest in the country; offering an interesting opportunity for investors looking to rent to locals for lower yields but higher occupation rates.

Closing

Overall, I enjoyed here as it provided some added level of safety, feelings of Europe, great food and yearly excitement to keep their economy running. For somebody looking for employment in Mexico or for quieter areas, Aguascalientes, given it’s small & landlocked nature seems to fit the bill. If you’re one with some capital, I believe that you can live more cheaply and find some great real estate bargains given the reduced competition in their local market. There is the problem of increasing criminal groups in the region that could ignite an ugly feud, but until then, I recommend going to check out the place for yourself!

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