I had a great first impression of Oaxaca. The sun was shining, the markets were bustling full of ladies selling edible grasshoppers (chapulines), but where I really felt at peace was sat outside a restaurant in the main square (Zocalo), sipping on mezcal whilst watching the world go by.

Oaxaca is one of the most popular places to visit, with excellent Day of the Dead festival celebrations in November, and cool architecture and cuisine the rest of the year, amongst its colourful streets. This lively and vibrant city has so much to offer tourists, from local art to the Santo Domingo Church, there’s something for everyone. 

Despite its small size, deciding where to stay here can be a little tricky. Each area offers something different, and some are better suited to travellers than others. So I’ve created this guide to help you tailor your visit to maximise your experience and suit your needs.

So buckle up and let’s dive deep into Mexico’s fabulously loving, cultural heart. Vamos!

Front side of the Oaxaca Cathedral on a sunny day with blue skies
Todo bien o mal?
Photo: @Lauramcblonde

The Broke Backpacker is supported by you. Clicking through our links may earn us a small affiliate commission, and that's what allows us to keep producing free content 🙂 Learn more.

Oaxaca Neighborhood Guide – Best Places to Stay in Oaxaca

FIRST TIME IN OAXACA
fairy lights decorating the central pavillion surrounded by people
FIRST TIME IN OAXACA

Centro

Centro is the best neighbourhood to stay in Oaxaca if you’re visiting for the first time. This neighbourhood is the heart, soul and centre of the city.

ON A BUDGET
Typical mole sauce dish with rice and chicken. Unique sauce from central Mexico (Puebla and Oaxaca).
ON A BUDGET

El Llano

Situated north of the city centre is the quaint El Llano neighbourhood. Centred around one of the most famous parks in the city, this neighbourhood is one of the quietest in Oaxaca.

NIGHTLIFE
Santo Domingo, Oaxaca
NIGHTLIFE

Santo Domingo

Santo Domingo is a small neighbourhood north of the city centre that packs a big punch. It is one of the most beautiful areas of the city thanks to its labyrinth of cobblestone streets, buildings with colourful facades and its spectacular heritage sites.

COOLEST PLACE TO STAY
Jalatlaco, Oaxaca
COOLEST PLACE TO STAY

Jalatlaco

West of the city centre is Jalatlaco. One of the coolest places to stay in Oaxaca, Jalatlaco is a hip neighbourhood known for its cosy coffee shops, vibrant street art and its laid back and relaxed atmosphere.

FOR FAMILIES
Man sat facing the vista over the city from a patch of shade on a dry hill
FOR FAMILIES

Barrio De La Noria

La Noria is our best recommendation for where to stay in Oaxaca with kids because it is located outside of the city centre, but still within walking distance.

My Top Five Oaxaca Neighbourhoods to Stay in

Now, let’s take a look at each area in more detail. I’ve included my top accommodation and activity picks in each, so you know exactly what you’re getting.

1. Centro – Where to Stay During for Your First Trip

Centro is the best neighbourhood to stay in if you’re visiting for the first time. It’s the heart and soul of the city and is the best place to be if you’re keen to be at the centre of the action.

Here, you’ll find yourself surrounded by shops, restaurants, and bars, as well as the city’s most famous historical attractions and landmarks. One thing’s for sure, there’s no shortage of Mezcal bars in downtown Oaxaca. Whilst not a bar, I enjoyed a quiet mezcal outside Del Jardin Cafeteria in the main Zocalo.

Centro neighbourhood is also one of the best areas to soak in the city’s glorious atmosphere. On any given day you’ll find yourself swept up in the sounds, smells, and tastes of the city thanks to its lively, welcoming atmosphere.

  • Best For: Sightseeing, and being close to the main attractions.
  • The Vibe: It’s lively and bustling with lots of tourists around, especially near the markets.
  • Proximity to Airport: It’s 20 minutes away by Uber, or 70 minutes by a combination of walking 15-25 minutes, and taking 1-2 public transport modes.
  • Transport Level: Very easy. Zocalo is walkable though, so you don’t need transport to get around.
  • Budget: High by Oaxaca standards, but Mexico is still pretty cheap, so low compared to the USA/Western Europe.
  • Crowds: High for Oaxaca, but not too bad overall – this isn’t Times Square!
fairy lights decorating the central pavillion surrounded by people in El Zocalo, oaxaca, mexico
El Zocalo to base yourself.
Photo: @Lauramcblonde

Top Things to Do in Centro

  1. Browse contemporary art at the Museo de Los Pintores Oaxaqueños.
  2. Catch a performance at the Teatro Macedonio Alcala.
  3. Explore Oaxaca’s Zocalo, a small but bustling square in the heart and centre of the city.
  4. Go for a stroll along the atmospheric Andador Turístico.
  5. Marvel at the works of five well-known Oaxacan artists at MACO, the Museum of Contemporary Art of Oaxaca.
  6. Discover the culture and customs of the dia de muertos celebration and enjoy an authentic dinner.
  7. See the statue of Antonio de Leon, a Mexican Brigadier and native of Oaxaca.
  8. Visit Casa de la Ciudad, a community centre that offers a variety of creative and artistic exhibits.

Best Hotel in Centro: Hostal Nordes

Hostal Nordes in Oaxaca, Mexico.

Despite the name, Hostal Nordes has some of the cheapest private rooms in central Oaxaca. And unlike other budget options, it’s actually not bad here!

I’m not gonna pretend this is the Hilton, but it’s clean, the staff are friendly, and it’s just a few minutes from the main parts of the city, so what it lacks in luxury, it makes up for with the bare basics.

Best Hostel in Centro: Iguana Hostel Oaxaca

Iguana Hostel in Oaxaca.

A great hostel in a fantastic central location. There’s a nice sun terrace, barbecue facilities, and even karaoke on offer here, although I’d need at least a few mezcals before having a go at the latter…

I liked the free breakfasts here, and the social vibes. They even have a WhatsApp group to keep people connected and arrange activities together. Plus there’s a bar on the roof with a good selection of drinks. There’s also yoga if you’re into that…

Best Airbnb in Centro: Central Private Loft

Loft Airbnb in Oaxaca.

A small spot, in a great location, with a bit of privacy too! There’s even a kitty you can say hi to (not in the room of course).

They offer scooter and motorbike rentals, which is rare for a property of this type. Plus Arturo is a super friendly host who I always found to be very communicative, so it was never a problem getting hold of him.

2. El Llano – Best Place to Stay on a Budget

The quaint El Llano neighbourhood sits north of the city centre. Based around one of the most famous parks in the city, this area is also one of the quietest in Oaxaca. Here, you can enjoy a breath of fresh air and a break from the chaos without straying too far from the centre.

Oaxaca is a safe city, in general. But if you’re really concerned about safety, this area is also a great base.

El Llano is also my recommendation for settling for one night or if you’re on a budget. It has an abundance of good-value accommodation options, from backpacker hostels to boutique hotels. This lets you stretch your dollars a little bit further.

  • Best For: Anyone looking to stay a little longer in a quieter spot. Good for digital nomads.
  • The Vibe: Much quieter than Centro.
  • Proximity to Airport: It’s 20 minutes away by Uber/DiDi, or 60-70 by public transport.
  • Transport Level: It’s pretty walkable, but Uber/DiDi will easily take you to Centro.
  • Budget: Cheap. This is one of the better spots for saving money.
  • Crowds: Much lower than Centro.
Typical mole sauce dish with rice and chicken. Unique sauce from central Mexico (Puebla and Oaxaca).
Try the Mole sauce; a budget-friendly traditional Oaxacan dish.
Photo: @sebagvivas

Top Things to Do in El Llano

  1. Dive deep into the history, favours and spirit of the city at Oaxaca Profundo Sessions.
  2. Pack a picnic or go for a stroll through leafy and relaxing Parque Juarez El Llano.
  3. See a great collection of contemporary works of art at the Museo de Arte Contemporáneo de Oaxaca.

Best Hotel in El Llano: Hotel Posada San Rafael

Hotel Posada San Rafael Oaxaca City Mexico

Hotel Posada San Rafael is one of the best hotels to stay at in Oaxaca on a budget. Set in El Llano, this three-star boutique hotel is within walking distance of the city centre’s quirky bars, family-run restaurants, and a beautiful park. All the rooms are colourfully decorated and have private bathrooms and free Wi-Fi.

Best Hostel in El Llano: Esencia Hostal Terminal Oaxaca

Esencia Hostal Terminal in Oaxaca.

Located right by the ADO bus station, this hostel is super clean, and the staff here are very friendly. If you contact them in advance, they can help you check in late, which helps a lot if your bus arrives late at night.

It’s a no frills hostel, so don’t expect to find bar crawls or major events here. The attraction is the low costs and position by the station.

Best Airbnb in El Llano: La Mina

La Mina Oaxaca City Mexico

This beautiful Airbnb combines comfort and beauty with a fantastic location in Oaxaca City. It’s located right outside Jardín Conzatti and El Llano Park, then just a 10-minute walk to Santo Domingo Church. Wi-Fi, a full kitchen, and parking are provided. Plus, pets are allowed!

Price-wise I only recommend this as an affordable option for groups of 4. It’s a banger of a property, but you need to split the cost to make it broke backpacker-friendly.

3. Santo Domingo – Best Area For Nightlife

Santo Domingo might be a small neighbourhood, but it packs a big punch. It’s one of the best neighbourhoods of the city for beauty thanks to its labyrinth of cobblestone streets, colourful facades, and spectacular heritage sites.

It’s an excellent place to explore by day, but Santo Domingo really comes alive at night. Oaxaca, famously, is one of the best cities for Mexican festivals. In this neighbourhood, they really come alive.

As the sun sets, the streets fill with people looking for a good time. Because there are so many places to enjoy a drink, snack, or chat, Santo Domingo is the ideal place to be for nightlife in this vibrant city.

  • Best For: Younger backpackers, foodies and party lovers.
  • The Vibe: It’s home to a great range of restaurants and bars.
  • Proximity to Airport: Further away, taking 35 minutes by Uber/DiDi (+ added time for traffic), or 1.5-2 hours by public transport.
  • Transport Level: As with most neighbourhoods here, it’s walkable, but rideshare apps are cheap if needed. Don’t bother with local buses.
  • Budget: A little more on the pricy side.
  • Crowds: High at night especially, people come here to partyyy.
Front side of the Oaxaca Cathedral on a sunny day with blue skies oaxaca mexico
Santo Domingo Cathedral reaching for the skies. This place is nuts.
Photo: @Lauramcblonde

Top Things to Do in Santo Domingo

  1. Be amazed by the art, architecture and design of the spectacular Temple de Santo Domingo de Guzman.
  2. Visit Santo Domingo Church and pay your respects or confess your sins.
  3. Shop for local crafts at La Casa de las Artesanías de Oaxaca.
  4. Try a range of local craft beers at the Oaxaca Brewing Company.

Best Hotel in Santo Domingo: Hotel Oaxaca Real

Hotel Oaxaca Real

It may look quaint from the outside, but the Hotel Real provides a stunning oasis retreat in Oaxaca City. The hotel sits in a restored colonial mansion, complete with a swimming pool, poolside bar, and an onsite restaurant. Top attractions are close by, including Santo Domingo Temple, Santo Domingo Church and various markets.

It has a reasonably affordable price per night if sharing, this four-star accommodation is a score! It can be pricy in the summer months though.

Best Hostel in Santo Domingo: Casa Angel Youth Hostel

Casa Angel Youth Hostel Oaxaca City Mexico

This awesome hostel in Oaxaca is set in the buzzing Santo Domingo barrio. It offers pod-style beds with privacy curtains and modern amenities, so you’ll be comfortable no matter how long you stay. There’s also a rooftop bar, a relaxing balcony and a free hot breakfast buffet – you can’t go wrong!

It’s VERY budget-friendly, as well as bring one of Mexico’s best hostels, not just Oaxaca’s!

Best Airbnb in Santo Domingo: Downtown Guest Suite

Guest Suite in Oaxaca.

This charming suite is in a good location with a private entrance. They offer cooking classes and massages for additional fees, plus tours of the city and surrounding area.

The one thing I don’t like is the $100 peso charge for luggage storage, which they don’t allow at all on Sundays. Otherwise, Mario and his family are great hosts though, so it’s one of the better options in this part of Oaxaca.

4. Jalatlaco – Coolest Place to Stay

West of the city centre is Jalatlaco. One of the coolest places to stay in Oaxaca, Jalatlaco is a hip neighbourhood known for its cosy coffee shops and vibrant street art. The laid-back atmosphere on the western edge of Oaxaca Centro is home to some of the best restaurants in this city for traditional cuisine.

Despite being so close to the city centre, Jalatlaco isn’t the place to be if you’re looking for tourist attractions. But, what this trendy neighbourhood lacks in landmarks and attractions, it certainly makes up for in restaurants, cafes and bars. So, if you’re looking to eat well while here, Jalatlaco is one of the best neighbourhoods for you!

  • Best For: Hipsters and art lovers.
  • The Vibe: It’s a lot more bohemian here, with more street art and cute cobbled streets.
  • Proximity to Airport: Just 15 minutes away by rideshare taxis, but 50 minutes by a combo of the RC15 bus (25 mins) and walking (25 mins).
  • Transport Level: Good, easily walkable, and just 20 minutes from Centro on foot.
  • Budget: Moderate. It’s pricier than El Llano, but cheaper than elsewhere.
  • Crowds: Moderate. It attracts a relatively young, hip and art-loving crowd, but isn’t as popular as Centro.
Jalatlaco, Oaxaca traditional Oaxacan dishes of cacao in oaxaca, mecico
See an alternative side to Oaxaca

Top Things to Do in Jalatlaco

  1. Visit the majestic Templo de San Matias Jalatlaco.
  2. Taste Itanoni heirloom corn tortillas, they’ll change your life

Best Hotel in Jalatlaco: Casa Cempoal

Casa Cempoal Oaxaca.

Casa Cempoal has a 24/7 reception, and a tour desk, so it’s well-suited to flexible backpackers passing through. The hosts here are lovely, and it’s not too far away from the centre.

I only spent a night here, but it had a very homely feel to it, so I was definitely a fan. Would say it’s nice if you aren’t looking for somewhere overly social or flashy, and of course, a place that’s budget-friendly.

Best Hostel in Jalatlaco: Ticuchi Hostal

Ticuchi Hostal Oaxaca City Mexico

Ticuchi Hostal is technically on the outskirts of Jalatlaco but is too good not to include it (there aren’t any hostels strictly in Jalatlaco). Skirting the historic centre of Oaxaca, Tichuchi is where cool people stay to meet more cool people. The epic daily activities and the outdoor pool help facilitate this, nothing like a bit of splashing to break the ice eh?

The central location is a great place to base yourself, whether you want to go hunt street art, street food or both!

Best Airbnb in Jalatlaco: Me Encanta Jalatlaco

Me Encanta Jalatlaco Oaxaca City Mexico

This cosy hideaway is the best Airbnb in Oaxaca, with a stunning rooftop and an epic central location. The apartment matches the colourful and artistic neighbourhood of Jalatlaco. It’s a little more upmarket than what we’d normally pay, but it was too good not to include! And you can cut costs by sharing.

Outside you’ll find traditional restaurants, street art, and art galleries. Inside, you’ll find your home away from home with everything you could possibly need.

5. Barrio De La Noria – Best Neighborhood for Families

Barrio De La Noria is my best recommendation for where to stay in Oaxaca with kids. It’s removed from the busy city centre but is still within walking distance of all the top places to visit.

Set south of Centro Oaxaca, Barrio De La Noria is a calm and peaceful neighbourhood just a stone’s throw from the Zocalo Plaza. Here you can enjoy a range of delicious restaurants, bars, attractions, and shops, but without the throngs of tourists.

Barrio De La Noria is also ideally located for exploring further afield. If you’re keen to get back to nature, then this is the perfect place to make your base.

  • Best For: Families and more chilled travellers wanting a quiet spot.
  • The Vibe: It’s much more residential, so it feels more authentic here, but can be a little dull at times.
  • Proximity to Airport: Only 15 minutes by Uber/DiDi, but over an hour by public transport.
  • Transport Level: Not great compared to other parts of the city. Use Uber/DiDi to get around, but if you’re sticking to the neighbourhood, it’s walkable.
  • Budget: Cheaper than most other parts of Oaxaca.
  • Crowds: The lowest you’ll find in ay place on this list.
Man sat facing the vista over the city from a patch of shade on a dry hill in Oaxaca, mexico
Pack your picnic and your sun hats.
Photo: @Lauramcblonde

Top Things to Do in Barrio De La Noria

  1. Explore the grounds of the Templo de San Agustin.
  2. Visit the La Cosecha market and try food from La Pozontlería
  3. Shop, snack and sample your way through the bustling Mercado de Artesanias.
  4. Take a day trip to nearby Monte Alban and explore the archaeological site and the UNESCO world heritage ruins of the ancient Zapotec capital. It’s one of the best tours in Mexico I did.

Best Hotel in Barrio De La Noria: Hotel Camba

Hotel Camba Oaxaca City Mexico

This three-star hotel is one of my best recommendations for where to stay, and as hotels go, it doesn’t cost too much. It is conveniently located in Barrio De La Noria and offers easy access throughout the city. Rooms are spacious and comfortable, and each comes complete with a range of amenities.

Best Hostel in Barrio De La Noria: Azul Cielo Hostel

Azul Cielo Hostel Oaxaca City Mexico

This is my favourite hostel in Barrio De La Noria. It offers clean and comfortable accommodation just ten minutes from the city centre.

Each room is stylishly decorated to reflect Oaxacan culture and is well-equipped with contemporary features. There’s also a rooftop bar, bikes, and wifi available.

Best Airbnb in Barrio De La Noria: Casa Doblado

Casa Doblado Oaxaca City Mexico

This Airbnb is perfect for a big family, furnished with style and charm. It’s an easy walking distance to the historic centre and the heart of Oaxaca but without being in the middle of the noise and movement of the capital city. It has three bedrooms and five beds so everyone gets a good night’s rest.

Up to 8 guests can stay here, so if you have a big group, it’s a massive bargain.

FAQs About Finding a Place to Stay in Oaxaca

Here’s what people usually ask about the areas of Oaxaca City when looking for a good spot to stay in.

What are the best neighbourhoods in Oaxaca?

Personally, I jam Barrio De La Noria, it’s super mellow and I love that you can still walk to the tourist hot spots. If you want to see Santo Domingo Church, you can! If you want to ditch the city and head out to Puerto Escondido, you can!

Where should I go next?

Personally, I crave the beach after being in the city, something about the ocean decompresses me and I love being a dirty sandy salty backpacker. I’d head to Puerto Escondido and wash up there awhile. Puerto Escondido is about three hours away so try hitch a ride or organise public transport.

If you love the city vibe, cut a mish up to Mexico City and freak out there awhile!

What’s the hype around Santo Domingo Church?

It’s not a UNESCO world heritage site (that’s the entire Historic Centre of Oaxaca is though), but it’s blaaardy beautiful! The Santo Domingo Church has had a pretty colourful history, from it’s first conception in 1551, to it’s first construjction in 1608… But that was just the beginning, it’s been a military warehouse, a stable and subsequently closed to Catholic worship.

Check out Monte Alban if you’re keen to see a different sort of UNESCO world heritage site.

Don’t Forget Travel Insurance for Oaxaca

The most important thing about any kind of trip is making sure you’re safe. The best way to secure yourself before your trip is with trusty travel insurance for Mexico. All it takes is a mezcal or two before it becomes very easy to fall over.

ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

Where You Should Choose to Stay in Oaxaca

Oaxaca is awesome, so we recommend you take action now and book a good place soon, because the best places won’t be available at short notice. Whilst this is no Cancun, it is one of Mexico’s more popular tourist spots.

Casa Angel Youth Hostel in Santo Domingo is my favourite hostel because it’s in one of the best neighbourhoods for exploring, shopping, dining and dancing.

Just remember to keep your senses open. Oaxaca is a delight, so try not to miss anything. From the colourful houses to the mezcal, there’s a lot of fun stuff. And you can tuck into chapulines at the market if you feel brave!

If you think I’ve missed anything, please do hit me up in the comments, I’d love to chat. Let me know if you’ve been or are going and what you felt in Oaxaca.

Looking for more info on travelling to Oaxaca and Mexico?