Yeah, just about anything looks cheap from here. Even so, the Chapala rentals look much cheaper than comparable places in any remotely desireable place in the US. Or am I out of touch with US prices? I'm looking at listing 083, the 3BR 2.5B house in Las Redes for $460/mo, including water.
That listing 083 was unfurnished, so it is cheaper than most of the other ones I was looking at on the rental listing page.
I was thinking the Chapala area was pretty cheap too, then I checked out my local craigslist. Plenty of decent looking 2-3 BR apartments and townhouses in what is usually considered a desirable metro area for around $600 and these places are in decent areas too. I found a 3 BR single family house that looked very nice for $550, but that is the exception, not the rule. And it is craigslist, so may be a scam of some sort.
On the flip side, my area has plenty of upscale rentals for $1000+ for a 3br apartment, and houses can be even more. I think some of those higher end places in Chapala seem to be where the most money can be saved vs US prices. $1200-$1500 in Chapala would probably be double that stateside for similar amenities, interior finish and scenic views (in town).
It is sort of hard to compare the real estate since I have no clue how desirable the specific areas of Chapala are, and what the square footage of these houses are. I lived in a Mexican family's house one summer while doing study abroad, and the bedrooms were tiny! So a 3 BR down there may be more like a 2 BR stateside where one BR has a walk in closet or storage nook that could be used as a 3rd bedroom.
Overall though, I'm sure the cost of living is still very affordable there. And other less expat-oriented places in Mexico are even better bargains I bet!
Edit to add: A $500 place in Chapala may get you into an exclusive expat oriented community that has other amenities and is considered upscale. Not sure. $600 or so in my home city in the US would definitely not get you into housing that is exclusive, luxury, or in a country club community. So again, hard to compare what that $500 place in Chapala gets you vs. what you get in the US (if luxury, status, prestige is important to you).