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Cheapest Places to Live in South America – Cost…
The Cheapest Cities in South America To Live in 2023
South America is increasingly becoming a sought-after destination for digital nomads and those remote workers looking to live abroad and make the most from their income in US dollars, Euros, etc…
Because if you earn a US or European standard income, you are good in most South American cities, at least from the cost of living point of view, and South America has a lot to offer.
The continent has a blend of big cities with modern amenities and smaller, often overlooked cities that offer a slower pace of life. Among these, some stand out as the cheapest countries to live in, offering a relatively high quality of life at a fraction of the cost of cities in North America.
Remember: This is About Cities With Low Cost of Living in South America
So you will not find here Chilean cities, for example, despite Chile being the best country to live in South America, since it is not cheap (at least not compared to the neighbors). You will also not find Uruguay, one of the best places to retire in the region but also relatively pricey.
One of the cheapest places to live in South America is Colombia, with several cities on this list. Known for its violent past, stunning cityscapes, and colonial architecture, Colombia is a perfect place for those seeking a balance between affordability and lifestyle.
Colombia also improved a lot during the last 2 decades, especially in terms of safety, although there is still a long road ahead.
Ecuador and Bolivia, too, offer extremely cheap living options by South American standards. Quito, one of the oldest cities in South America, and Santa Cruz, a city often overlooked thanks to its copious natural beauty, are among the best places for affordable living. A one-bedroom apartment in the city center of these cities can cost as little as a third of what it would in major cities in Brazil.
Argentina and Paraguay are also among the cheapest countries to live in South America. Buenos Aires, despite being one of the more expensive cities in Argentina, is still quite cheap compared to cities in North America thanks to the huge devaluation of the Argentinian Peso.
Asuncion, Paraguay’s capital, is another city where a single person who works remotely for a US or European company can live comfortably without breaking the bank.
The Criteria to Define the Cheapest Places to Live in South America
Size
Size matters in this case.
Smaller cities are cool, but to analyze thousands of little municipalities would take an enormous amount of time, so we considered only cities with more than 500,000 residents.
The Living Cost Index by Numbeo
Numbeo, the world’s largest cost repository, compiles it. It’s a crowd-sourced database with data on housing, healthcare, and other costs of living around the world.
Lower costs are important for expatriates for the very reason we stated at the beginning of this article: we want to get the maximum benefit from the same amount of money.
The Living Cost Index is a measure of how expensive it is to live in a particular place compared to New York City (which has a standard value of 100 on the Index).
For example, if a city has a Living Cost Index of 50, it means that on average, living costs there are 50% lower than in New York City.
This index is very useful for people considering relocating or traveling. It gives a quick understanding of how much money you might need to maintain your current standard of living in a different city or country.
What Are the Countries in South America?
Another important criterion is to define what is South America and which countries are part of it.
One important thing to have in mind is that we define South America purely on geographical terms. That means we don’t consider linguist aspects, like we do when we talk about Latin America (a definition that includes only countries that speak languages from the romance (Latin) family, like Spanish, French, and Portuguese, and for this reason excludes Belize, for example, where the official language is English.
Suriname, for example, is not a Latin American country (its official language is Dutch) but is considered one of the of South American countries.
Here is the complete list:
- Argentina
- Bolivia
- Brazil
- Chile (We wrote a full article about the pros and cons of living in Chile here)
- Colombia
- Ecuador
- Guyana
- Paraguay
- Peru
- Suriname
- Uruguay
- Venezuela
Now that is clear what we are talking about, let’s dive into our list of the most inexpensive places in South America.
The Best Cities to Live in South America For a Cheap Lifestyle in 2023!
10 – Quito, Ecuador
Average Cost of Living Index: 34.6
65.4% cheaper than New York.
Population: Approximately 2 million
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $1,494.44 on average.
Curious low-living cost fact: Quito has the 2nd Cheapest Monthly Public Transportation Pass among major cities in all of the Americas.
Opening our top 10 of the cheapest places to live in South America, this city has a wide-ranging economy, with many areas like building and construction, trade, and personal services playing a big part in its wealth. Big companies in Quito include the Corporacion Favorita C.A. and the Central Bank of Ecuador.
Quito has a kind of climate called subtropical highland. This means it has mild temperatures all through the year. Even though it’s near the Equator, the city is high up, so the weather is cool. The average daily temperatures are usually between 10°C (50°F) and 20°C (68°F).
9 – Medellin (Colombia)
Average Cost of Living Index: 31.9
68.1% cheaper than New York.
Population: Approximately 2.508 million
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $1,355.95 on average, with most offers ranging between $1,004.772 and $2,009.54.
Curious low-living cost fact: Medellin has the 3rd cheapest domestic beer prices among major cities in all of the Americas
Located in the Aburrá Valley, a central region of the Andes Mountains in South America, Medellín is served by José María Córdova International Airport, located about 35 km northeast of the city. The airport offers flights to several destinations in the Americas and Europe, including Miami, Madrid, and New York.
The economy of Medellín is diverse and robust, with key industries including textiles, fashion, construction, infrastructure, and energy. The city is home to many Colombian and international companies, making it a significant economic center in the country.
Medellín’s climate is a tropical rainforest climate, bordering on a tropical monsoon climate.
8 – Santa Cruz, Bolivia
Average Cost of Living Index: 31.3
68.7% cheaper than New York.
Population: Approximately 1.453 million
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $1,159.46 on average, with most offers ranging between $1,013.63 and $1,501.64.
Curious low-living cost fact: Santa Cruz has the Least Expensive Chicken Fillets (1kg) prices among major cities in all of the Americas
Santa Cruz is located in the eastern part of the country, and it’s served by Viru Viru International Airport, the largest and most important airport in Bolivia. The airport offers flights to several destinations in the Americas and Europe, including Miami, Madrid, and São Paulo.
The city’s economy is primarily based on agriculture, with Santa Cruz being the most important agricultural department in the country. Other significant industries include oil, natural gas, and manufacturing.
7 – Cartagena, Colombia
Average Cost of Living Index: 31.0
69.0% cheaper than New York.
Population: Approximately 914,552 residents.
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $2,594.32 on average, with most offers ranging between $1,758.35 and $4,013.73.
Curious low-living cost fact: Cartagena has the Least Expensive Domestic Beer prices among major cities in all of the Americas
Cartagena, also known as Cartagena de Indias, is a port city on Colombia’s Caribbean coast. Despite its popularity as a tourist destination, the cost of living in Cartagena remains relatively low. The city is famous for its preserved old town, a UNESCO World Heritage site, with cobbled streets, colonial buildings, and iconic fortress walls.
The city’s economy is primarily based on maritime and petrochemicals industry, tourism, and services. Cartagena is home to the country’s main maritime port.
The city is known for its warm and humid weather, with temperatures often reaching the mid-30s Celsius (90s Fahrenheit). It is served by Rafael Núñez International Airport, located within the city. The airport offers flights to several destinations in the Americas and Europe, including Miami, Panama City, and Amsterdam.
6 – Cali, Colombia
Average Cost of Living Index: 31.0
69.0% cheaper than New York.
Population: Approximately 2,227,642 people.
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $939.46 on average, with most offers ranging between $753.58 and $1,507.16.
Curious low-living cost fact: Cali has the 2nd cheapest fitness club prices among major cities in all of the Americas
Cali’s economy is primarily based on industry and commerce. The city is home to the Pacific Stock Exchange and several multinational companies. It is also the center of an important agricultural region, known for its sugar and coffee production (Colombia is one of the best countries in the world for the hot, bitter liquid).
The city is served by Alfonso Bonilla Aragón International Airport, located in the nearby city of Palmira. The airport offers flights to several destinations in the Americas and Europe, including Miami, Madrid, and Panama City.
Cali has a tropical savanna climate, with a short dry season and a long wet season. The city is known for its warm and humid weather, with temperatures often reaching the mid-30s Celsius (90s Fahrenheit).
5 – Asuncion, Paraguay
Average Cost of Living Index: 30.5
69.5% cheaper than New York.
Population: Approximately 525,252
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $ 1,232.91 on average, with most offers ranging between $825.25 and $2,696.90.
Curious low-living cost fact: Asuncion has the Least Expensive McMeal prices among major cities in all of the Americas
Asuncion, the capital and largest city of Paraguay, is located in the southwestern part of the country, near the Paraguay River.
Surprisingly, Paraguay is one of the countries with the largest community of foreigners in entire South America (mostly Brazilians).
The closest international airport is Silvio Pettirossi International Airport, which is the busiest airport in Paraguay. It offers flights to several cities in the Americas, including Buenos Aires, Sao Paulo, and Miami.
Asuncion is the main economic, cultural, and industrial hub of Paraguay. The city’s economy is based on commerce and services, including banking, telecommunications, and insurance. The city is also home to the National University of Asuncion and several other educational institutions.
The city experiences heavy rainfall throughout the year, especially during the summer months.
Read also: The Best Non-Beach Vacation Getaways (Paraguay is one of them)
4 – Bogota, Colombia
Average Cost of Living Index: 30.4
69.6% cheaper than New York.
Population: Approximately 7.4 million
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $ 1,756.15 on average, with most offers ranging between $1,255.97 and $2,260.74.
A curious fact about living costs: Bogota has the 3rd cheapest Uber rate among 17 national capitals.
Despite being one of the largest cities in South America, Bogota remains relatively inexpensive. The city is located in the center of Colombia, on a high plateau.
The climate is subtropical highland, with average temperatures remaining constant throughout the year. However, due to its altitude, it has significant temperature variation between day and night.
Bogota is the main economic and industrial center of Colombia. The Colombian government and various international entities have their headquarters in the city. It is a major center for the import and export of goods for Colombia and the Andean Community in South America.
It also has one of the most efficient bus transportation systems on the continent.
The closest international airport is El Dorado International Airport, which is among the busiest in Latin America in terms of passenger traffic. It offers flights to cities in the Americas, Europe, and Asia.
3 – Buenos Aires, Argentina
Average Cost of Living Index: 30.0
Buenos Aires is 70.0% cheaper than New York.
Population: Approximately 13.1 million (Metropolitan Area)
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $ 2,497.58 on average, with most offers ranging between $2000 and $3125.
Curious low-living cost fact: Buenos Aires has the cheapest bottles of mid-range red wine among major cities in all of the Americas
Buenos Aires is known for its European-style architecture and rich cultural life.
Thanks to the massive devaluation of the Argentinian Peso, it is one of the most inexpensive capital cities in South America, offering a high quality of life (when compared to cities like Rio de Janeiro or Caracas) at a relatively low cost. No surprise that lately retirees are more and more attracted to the idea of retirement in Argentina.
It is the capital of Argentina, a country that tops the list of the best Spanish-Speaking countries to visit.
Buenos Aires is the financial, industrial, and commercial hub of Argentina. Many multinational businesses have their regional headquarters in the city. The Port of Buenos Aires is one of the busiest in South America; navigation is mainly oriented to direct traffic with the ports of the Paraná and Uruguay rivers.
Despite the economic crisis, Buenos Aires is still one of the safest cities on the continent.
There is a large airport called Ministro Pistarini International Airport, commonly known as Ezeiza Airport. It offers flights to many destinations worldwide, including cities in Europe, North America, and other parts of South America.
2 – Barranquilla, Colombia
Average Cost of Living Index: 27.4
It is 72.6% cheaper than New York.
Population: 1.2 million
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $1,188.98 on average, with most offers ranging between $1,004.77 and $1,306.20.
Curious low-living cost fact: Barranquilla has the cheapest Pepsi prices among major cities in all of the Americas
Barranquilla is famous for its annual Carnival, which is one of the biggest in the world.
The city’s economy is diverse, with key industries including port activities, manufacturing, and services. Major employers in the city include the port of Barranquilla, Ecopetrol, and several multinational corporations. The climate in Barranquilla is tropical, with high temperatures and humidity throughout the year.
It is also located near the Caribbean Sea, making it a significant port in Colombia.
The closest international airport is the Ernesto Cortissoz International Airport, which offers flights to several destinations in the Americas and Europe.
Read also: The Easiest Countries to Adopt a Baby From (Colombia is one of them).
1 – Bucaramanga, Colombia
Average Cost of Living Index: 23.7
Bucaramanga is 76.3% cheaper than New York.
Population: 528,575 residents.
Average Square Meter Price in an Upper-Middle-Class Residential Zone (USD): $870.80 on average, with most offers ranging between $552.62 and $1,004.77.
Curious low-living cost fact: Bucaramanga has the cheapest white bread prices among major cities in all of the Americas.
Closing our list of the cheapest places to live in South America, Bucaramanga is located in the northeastern part of the country, in the eastern branch of the Colombian Andes. The city is known for its parks and for its nickname “La Ciudad de Los Parques” (“The City of Parks”) and “La Ciudad Bonita de Colombia” (“Colombia’s Beautiful City”).
Sounds enticing, right?
The city has plenty of affordable housing even in upper-scale districts, making it an attractive destination for both locals and expats. The city is also famous for its vibrant culture and friendly locals, which add to its charm and appeal.
For foreigners that want to retire there, Colombia is one of the 25 countries with special visa schemes for retirees.
Bucaramanga’s economy is diverse, with main industries including footwear and clothing, food processing, and metalworking. The city is also a regional center for the oil and mining industries. One of the major employers in the city is Ecopetrol (the Colombian state oil company), but there are also several multinational corporations.
The city is served by the Palonegro International Airport, which is located about 30 minutes away from the city center. The airport offers flights to several destinations, including Bogotá, Medellín, Panama City, and Miami.
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Levi Borba is the founder of The Expatriate Consultancy, creator of the channel The Expat, and best-selling author. Some of the links in this article may be affiliate links, meaning that the author will have a commission for any transactions.
