There are many cities in the world, but only a few offer both a low cost of living and a high quality of life. Many Americans have relocated to different cities in search of a more affordable and fulfilling lifestyle.
With the rising cost of living, many people are moving abroad to enjoy a better quality of life within their budget.
Mercer conducted a cost of living survey across 226 cities worldwide, analyzing over 200 daily expenses, including housing, food, entertainment, and healthcare, to identify the most and least expensive cities for both residents and expatriates.
Here, we have listed eight cities that offer an affordable cost of living while excelling in healthcare, safety, infrastructure, and cultural activities. Whether you seek a peaceful environment, strong job opportunities, or a vibrant social scene, these hidden gems provide a budget-friendly yet fulfilling lifestyle.
8. Costa Rica
Costa Rica offers an affordable yet high-quality lifestyle, making it a popular choice for expats and retirees. Although monthly expenses vary depending on lifestyle, a single person can live comfortably on $1,600 to $2,000 per month. In addition to living comfortably on $2,000 a month, retired couples can live on $2,500 to $3,000 a month, which will cover all of their basic expenses, such as housing, transportation, healthcare, utilities, food, and entertainment.
With a balanced combination of affordability, natural beauty, and first-rate healthcare, Costa Rica continues to be a desirable destination for a comfortable and economical life. One of the country's greatest advantages is its high-quality, affordable healthcare system, with legal resident expats having access to the government-run universal healthcare system known as Caja.
Those who shop and eat like locals can save a lot of money on food, and the weekly open-air farmers' market, or feria, is a mainstay in practically every town, offering fresh and priced produce, spices, and other necessities.
7. Barcelona
Barcelona is a well-liked student destination because it combines convenience and cost. The average monthly cost of student housing is between €700 and €1,200, with rates rising in the city center and falling in the suburbs. Buses, trains, and trams are all part of the city's effective and varied public transit network, which makes commuting accessible and reasonably priced.
The overall cost of living for students is kept reasonable by this well-connected transportation system.
How Much is the Rent in Barcelona Per Month?
Although rates vary due to great demand, renting a studio apartment in Barcelona typically costs €1,219 ($1,271) per month. The cost of renting has been fluctuating in recent years, increasing dramatically as the city's areas gain appeal. Barcelona implemented a rent ceiling last year as a regulatory mechanism to curb these rising costs.
Living on the periphery can assist lower rental costs, yet the city is still a popular destination despite the growing costs.
| Type of Housing | Average Monthly Rent (€) |
| Student Housing | €700 - €1,200 |
| Studio Apartment | €1,219 |
| City Center Apartment | Higher than €1,219 |
| Outskirts Apartment | Lower than €1,219 |
| Rent Cap Regulation | Introduced to control rising costs |
6. Medellín
Compared to many Western cities, Medellín, Colombia, offers a great quality of life at a reasonable cost, making it an affordable location for expats. The average monthly rent for a small apartment in a desirable area is between $300 and $600. The city's public transit system is economical and effective; a metro ticket costs about $0.70.
Monthly shopping might cost anywhere from $100 to $150 while eating out at neighborhood restaurants can cost as little as $3 to $5 per meal. Additionally, Medellín offers excellent medical treatment at a significantly lesser cost than in North America or Europe, which appeals to foreigners seeking budget without compromising comfort.
How Much is the Housing Cost at Medellín?
The majority of travelers and digital nomads in Medellín, Colombia, opt to reside in the posh El Poblado district, where rents have risen sharply in recent years. The monthly rent for a one-bedroom apartment in El Poblado is $700, according to local listing website Fincaraiz.
The Laureles area is an excellent substitute for individuals seeking a more local and reasonably priced experience. With flats starting at around $400 per month, it provides a modern, laid-back vibe at a more affordable price.
Food and Grocery Cost at Medellín
The cost of living in Medellín, Colombia, is reasonably priced, particularly when considering daily expenses and food. While a full dinner at a mid-range restaurant can cost anywhere from $10 to $20 for each meal, a local "Menu del Día" lunch usually costs between $3 and $6. Generally speaking, monthly grocery shopping costs range from $150 to $300, depending on individual tastes and purchasing patterns.
A cup of coffee at a café costs between $1.50 and $3, making it reasonably priced for coffee enthusiasts. Medellín is a desirable location for retirees, digital nomads, and expats seeking a good standard of living without going over budget because of its reasonable costs.
5. Lisbon
The cost of living in Lisbon includes necessities like lodging, meals, transportation, and recreational pursuits. Budgeting for extra expenses is essential to controlling overall spending because rent is the largest expense. A person will spend about €700 a month on necessities if they don't pay rent.
Your food budget will depend on your eating and shopping habits because Lisbon offers a wide range of options for both groceries and dining out. Grocery prices typically range between €250 and €400 per month; shopping at low-cost supermarkets like Aldi, Continente, or Lidl can help keep expenses lower; choosing local markets and discount stores can also be a great way to save money without sacrificing quality of life.
How much money do you need to live comfortably in Lisbon?
When it comes to living expenses, Lisbon is the most costly city in Portugal. The projected monthly expenses for a single individual in Lisbon, including rent, are €1,767. The required monthly budget, excluding school fees, is about €4,492 for a family of four.
These numbers demonstrate how much more expensive living in Lisbon is than in other Portuguese cities, mostly as a result of growing rental costs and other expenses.
4. Ho Chi Minh
After finding reasonably priced lodging in Ho Chi Minh City, it's time to go exploring. With daily transit expenses usually ranging from $7 to $11, getting about the city is both affordable and practical.
With more than 100 routes, buses are the most economical choice. For travels under 15km (9.3 miles), fares start at about VND 5,000 ($0.22), making it a great way to see important locations.
Another excellent option is to rent a bike, which costs $5 to $6 per day. This gives you more flexibility to go at your own speed, but you must have a current driver's license.
Cost of Living in Vietnam for Indian Students
For similar living standards, Vietnam's cost of living is somewhat higher than India's.
- Depending on lifestyle and region, monthly expenses in Vietnam can range from ₹37,500 to ₹75,000.
- Living expenses in India can be less expensive, with prices ranging from ₹25,000 to ₹50,000.
- Vietnam tends to have slightly higher prices for food, rent, and transportation than India.
3. Kuala Lumpur
Kuala Lumpur is a thriving tourism destination renowned for its many attractions, metropolitan vibrancy, and cultural atmosphere. The city has a variety of nightlife, commercial areas, street art, and famous sites. While upscale malls like Pavilion and Lot 10 serve shoppers, popular neighborhoods like Changkat (Bar Street) and Jalan Alor (Food Street) are hubs for nightlife and street cuisine. For stunning city views, visitors can also tour Menara KL (KL Tower) and the lovely park that surrounds it.
The Petronas Twin Towers are located in the Kuala Lumpur City Centre (KLCC), which is also home to the Suria KLCC shopping center, an aquarium, and the wooded KLCC Park. But the pubs and restaurants here are usually more costly. Ampang, a sizable residential and business sector that includes KLCC, is another noteworthy location with a wealth of dining options, pubs, and entertainment venues. The national stadium and Merdeka 118, now the second-tallest structure in the world at 644 meters, are also located there.
Is it worth moving to Kuala Lumpur?
Safety is an important consideration when choosing a place to live, and moving to a new city can be nerve-racking. The majority of foreign families say they feel comfortable in their communities in Kuala Lumpur (KL), which has lower crime rates than many European cities.
KL's healthcare system is excellent for both locals and foreigners since it is hygienic, effective, and of high quality. Access to first-rate medical facilities is made simpler by the lower cost of private healthcare insurance in KL as compared to many other Asian and Western nations.
Kuala Lumpur offers a blend of traditional and modern cuisines, making it a culinary haven for foodies. Malaysian eateries provide a range of cuisines, such as Chinese, Indian, and Malay food, as well as fusion cuisine, which blends components from several cultures.
2. Mexico City
As of 2024, a one-bedroom apartment in Mexico's city center costs about 12,214 MXN a month on average, while an apartment outside of the city center costs about 8,450 MXN. Rental costs in smaller cities and rural locations can be much lower than in larger cities, sometimes by as much as 50%.
Rental Prices in Key Locations:
Mexico City: In the most costly city, a three-bedroom apartment in the heart of the city costs roughly 23,413 MXN a month.
Guadalajara: The second-largest city, offering lower rents than Mexico City.
Monterrey: a center of industry with reasonably priced rents in comparison to Mexico City.
Rural Areas: More affordable housing options, with significantly lower rents.
Is Mexico City Expensive to Live In?
Mexico City is a desirable location for both families and individuals due to its substantially lower cost of living when compared to New York. A single person's projected monthly expenses, without rent, come to $703.7 (14,261.6 MXN), while a family of four may anticipate spending $2,602.2 (52,738.3 MXN) on expenses each month.
Mexico City is 59.7% less expensive than New York, and rental costs are generally 77.5% lower. Residents may live comfortably at a fraction of the price because of this significant cost disparity. Mexico City is a desirable option for residents and foreigners seeking a high standard of living without the financial burden of more costly global capitals because of its rich cultural scene, cheaper costs, and reasonably priced housing.
1. Buenos Aires
Overall, Buenos Aires is about 57.7% less expensive than New York when rent is not taken into account. Compared to major cities around the world, Buenos Aires offers a relatively affordable cost of living. For example, a single person's estimated monthly expenses are $725 without rent, and a family of four might expect monthly expenses of about $2,608 without rent.
It's crucial to remember, though, that Argentina has seen high inflation recently, which has affected the price of products and services. The nation saw a 211% annual inflation rate in 2023, which resulted in significant price rises for commonplace goods.
Can You Live on $1000 a Month in Argentina?
With a monthly budget of $1,000 to $1,300, many retirees and expats can live comfortably while paying for necessities like rent, food, and transportation. The projected monthly cost for couples is between $1,500 and $1,800, which enables a modest yet satisfying lifestyle. According to these statistics, living in such a place is still reasonably priced when compared to many Western cities, which makes it a desirable choice for anyone looking to live more cheaply without sacrificing quality of life.
Which Cities Have the Highest Cost of Living in the World?
Hong Kong: Because of its high property expenses, upscale lifestyle, and pricey goods and services, it is frequently named the most expensive city.
Singapore: Despite being a tax-friendly nation, it is notorious for having expensive food, real estate, and transportation costs.
Zurich: A significant Swiss financial center with high wages but also expensive accommodation, food, and services.
Geneva: Another city with high rent, opulent living, and high daily costs.
Basel: Like other Swiss cities, the capital city continues to have a high cost of living.
Bern: The capital of Switzerland, maintaining a high cost of living similar to other Swiss cities.
New York City: The most expensive city in the U.S., driven by skyrocketing real estate prices and high daily expenses.
London: The expense of housing, transportation, and entertainment makes it one of the most costly cities in Europe.
Nassau: The capital of the Bahamas, where high import taxes and tourism-driven demand make living costly.
Los Angeles: Expensive due to high rent, housing prices, and general cost of living, especially in entertainment and dining.