One's perception can change everything when it comes to price. The popular resorts in Mazatlán (where all of the tourists stay) cost anywhere between $65-$350 per night. Considering we were paying $1,500 per month or $50 per night to live where we were living before quitting our careers and coming to Mexico, $25 seems pretty reasonable to us.
On the other hand, if someone is paying $25 for an entire month's rent, then $25 per night will likely seem absurdly high to them.