A new survey of U.S. retirees living in Mexico real estate has revealed that nearly 44% live comfortably on less than $1,000 per month.

Independent researchers at the International Community Foundation (ICF) questioned over 800 Americans living in Mexican coastal communities.

The ICF said the findings underscore the potential demand for Mexico real estate from low and middle income retirees, pointing out that in California the equivalent average monthly living costs are between $1,750 and $2,230 per month, and in other parts of the U.S. even higher than that.

The U.S. State Department estimated that there were around $1 million Americans living in Mexico real estate in 1999, and today the figure is even higher.

Many thousands of Canadians are also enjoying retirement in Mexican coastal areas, a number that is increasing rapidly due to the strength of the Canadian dollar.

Some experts say as many as 5 million retired U.S. citizens will move to Mexico, full-time or part-time, by the year 2025.

Plans to allow U.S. retirees to use Medicare to cover treatment by Mexico health care providers could further boost these estimates.

The ICF said that this boom needs to managed carefully and has launched a "Retiring Responsibly in Mexico" initiative.

To read the full report visit the ICF's website.