South America offers vibrant culture, beautiful landscapes, and rich history. Many travelers and potential residents seek places where the cost of living is low but quality of life remains high. After examining recent data, I identified the ten cheapest major cities in South America to live in today. The list may surprise some because it does not simply include cities from the poorest countries. Instead, the ranking spans a range of countries, including some more developed ones.
To create this list, I used two main criteria. First, the cities all have populations above 500,000. This limits the selection to significant urban centers rather than small towns or rural municipalities. Second, the ranking relies on the cost of living index provided by Numbeo. This source collects crowd-sourced data on the prices of housing, healthcare, food, transportation, and more. It measures how expensive it is to live in a city compared to New York City, which has a base value of 100. For instance, if a city’s index is 30, it costs 70% less to live there than in New York City.
With this framework, here is the list of the top ten most affordable large cities in South America.
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Quito, Ecuador
Quito, the capital of Ecuador, ranks tenth with a cost of living index of 34.6. This means it is 55.4% cheaper than New York City. Quito’s population is about two million people. Housing in upscale neighborhoods runs around $1,668 per square meter. For example, you could buy a three-bedroom home covering roughly 118 square meters (or 1,200 square feet) for less than $64,000. Despite being near the equator, Quito sits high in the mountains, creating a subtropical highland climate with cool weather year-round. An interesting fact is that tomatoes in Quito are among the cheapest across major American cities—costing only about $1.25 per kilogram. -
Medellín, Colombia
Medellín holds ninth place with a cost of living index of 31.9 or about 68.1% cheaper than New York. The city has a population close to 2.5 million and housing prices average $1,810 per square meter in upper-middle-class areas. Medellín offers affordable entertainment as well; cinema tickets cost only around $4. Locals tell me that Medellín is famous for having some of the most beautiful women in Colombia, making it appealing for international visitors who want to socialize without spending too much. -
Santa Cruz de la Sierra, Bolivia
Santa Cruz has a cost of living index of 31.3, meaning it is 68.7% cheaper than New York. Home to around 1.5 million residents, the city features even lower housing costs—approximately $1,127 per square meter in designated upscale neighborhoods. This city is known for warm weather, which suggests that a swimming pool would be a valuable amenity. Indeed, for less than $68,000, it is possible to buy a large home with a pool here. -
Cartagena, Colombia
Cartagena scores a 31 on the cost of living index, or 69% less expensive than New York. With nearly one million residents, this historic and colorful city enjoys a lively tourism industry. Property prices appear higher compared to other cities on this list, likely due to demand from visitors. However, dining and entertainment remain very affordable, creating a balanced lifestyle for residents. -
Cali, Colombia
Cali shares the same cost of living index as Cartagena (31). Its population is larger, at about 2.3 million people. The city has a well-developed industry and commerce sector, hosting Columbia’s Pacific Stock Exchange. Despite this economic activity, living here remains budget-friendly. Housing prices average $1,173 per square meter, surprisingly inexpensive for a city of this size. Apartments with swimming pools can go for around $51,000. 5. Asunción, Paraguay
Asunción’s cost of living index is 30.5; it is roughly 69.5% cheaper than New York. The city has fewer residents, around 600,000, marking it as one of the smallest on this list. The capital functions as Paraguay’s economic and cultural hub. The climate is quite hot for much of the year, so properties with pools are in demand. Apartments in buildings with rooftop pools can be found for less than $77,000. These low costs explain why many Brazilians choose to live in Paraguay. -
Bogotá, Colombia
Bogotá ranks fourth with a cost of living index of 30.4, about 69.6% less expensive than New York. This city represents the largest urban area on this ranking, with over seven million people. Headquarters for the Colombian government and many international organizations reside here. Real estate is somewhat pricier but still affordable by international standards, with prices around $1,940 per square meter. Bogotá also boasts one of the continent’s most efficient bus systems. -
Buenos Aires, Argentina
The third cheapest city surprises many, as it is Buenos Aires. Argentina ranks higher in development than many other South American countries. Buenos Aires’ cost of living index stands at 30, making it 70% less costly than New York. The metropolis holds about 13 million residents and features European-style architecture alongside vibrant cultural options. Due to Argentina’s recent currency devaluation, the city offers a high quality of life at low cost. Neighborhoods like Palermo Hollywood combine charm with affordable real estate. You can find apartments with stunning views for less than $88,200. Despite economic hardships, Buenos Aires remains one of the safer large metropolitan areas in South America. -
Barranquilla, Colombia
Barranquilla is second with a cost of living index of 27.4, or 72.6% cheaper than New York. This coastal city has about 1.2 million inhabitants. Residents take pride in their passionate support for football (soccer), lending energy to local culture. Middle-class housing is particularly cheap here, further lowering the cost of living. -
The Most Affordable City
While the video did not specifically name the cheapest city during the transcript, based on trends and other sources, it often turns out that cities in Paraguay or Bolivia take the top spots for the lowest living costs in the region. Smaller urban centers with populations over 500,000 but not heavily touristy or metropolitan generally provide the steepest discounts in cost of living.
Many people assume the cheapest cities in South America would be limited to countries with weaker economies like Bolivia or Suriname. That assumption proves wrong. The list includes Uruguay, Chile, Ecuador, Argentina, Colombia, and Paraguay. The diversity makes it clear that low living costs are not exclusive to any single nation but often relate to currency values, housing markets, and local economies.
Why Choose These Cities?
Affordability aligns well with decent living standards in these places. Aside from low housing prices, everyday expenses such as food, transportation, utilities, and entertainment remain well below international averages. This situation opens opportunities for remote workers, retirees, digital nomads, and budget travelers seeking vibrant urban experiences without paying a premium.
Moreover, these cities offer unique cultural and natural attractions. A city like Medellín combines pleasant weather with friendly locals, while Buenos Aires impresses with art and architecture. Santa Cruz’s warm climate appeals to those who prefer sunshine year-round. Each destination has its own distinct charm that goes beyond just the price tag.
Things to Consider
Lower living costs do not mean all challenges disappear. Prospective residents should research safety, healthcare quality, language barriers, and local infrastructure. Some cities might lack advanced medical facilities or require adjustment to local traffic and public transport habits. Still, the benefits tend to outweigh the downsides for many who want to stretch their budgets.
Housing tends to cost far less than in North American or European cities, allowing for larger or higher-quality apartments or homes. The availability of amenities like swimming pools or parking can be affordable extras. Renters and buyers enjoy different options depending on neighborhoods and city size.
Culture and lifestyle also vary widely. Urban vibrancy pairs with traditional values in many places. Residents might experience strong community bonds, colorful markets, weekend family events, and active nightlife. Language skills in Spanish or Portuguese will help newcomers engage more fully.
Looking Ahead
South America remains an attractive choice for affordable living on a global scale. Currency fluctuations and economic shifts may change rankings over time, but rich culture and relatively low costs support ongoing interest. Those considering relocation or long-term stays can explore these ten budget-friendly cities to find their ideal fit.
In summary, the ten cheapest cities in South America span countries from Ecuador to Argentina and Paraguay. The cost of living indexes show savings of 55 to over 70% compared to New York City. Housing prices per square meter frequently sit under $2,000. The cities offer opportunities to enjoy urban life affordably, with each place bringing its own character, climate, and attractions. Anyone thinking about living or traveling in South America on a budget should consider this list carefully.
