Best areas to live in:

You should look in Coyoacan which is probably the most obvious choice. It’s really lovely but it is a little bit far south so it’s quite a way to go into the centre especially after a night out trying to get home so keep that in mind. You can also try la San Angel and Xochimilco. Juárez is a great option. Depending on work, check out San Rafael, Santa Maria La Ribera, Nápoles, Del Valle, Narvarte. If you are studying, you may find it is better to live a bit further south.

Hostels:

Casa Pepe – this hostel was right in the centre of where we wanted to be, it was fun and lively, had amazing free breakfast and drinks deals each night. The rooms were clean, modern and well furnished. Literally no complaints.