With the cost of living rising globally, many people are looking for affordable places to live. The cheapest places to live often have lower costs for necessities like housing, food, transportation, and healthcare. Choosing an inexpensive area to live can help stretch your money further. But what exactly are the cheapest places in the world to live right now?
What defines an affordable place to live?
Several factors influence how affordable a location is:
- Housing costs – Both rental and mortgage prices for properties
- Cost of groceries and dining out
- Transportation expenses – Public transit fares, fuel prices, car prices
- Utility bills – Electricity, water, garbage collection, internet
- Healthcare expenses – Doctor visits, hospital fees, prescription medications
- Taxes – Income tax, sales tax, property tax
- Education costs – Public or private school fees
- Recreation spending – Entertainment, sports, vacations, hobbies
Locations with lower overall costs in these areas tend to be more affordable for the average resident. Of course, individual lifestyle preferences also impact budgets. But focusing on places with cheap basics like housing and food is a good starting point.
Cheapest countries to live in globally
Some of the most affordable countries to live in around the world include:
India
India boasts extremely low costs of living, especially in rural areas. While cities like Mumbai and New Delhi are getting more expensive, many parts of the country still have bargain basement prices. Apartments can be rented for under $200 per month in many towns. Food staples like rice, lentils, vegetables, and spices are very cheap. Domestic help is also affordable. International schools charge much less than in western countries too.
Nepal
Nepal remains largely underdeveloped, which leads to lower costs of living. Food, housing, utilities, and transportation come at budget prices. Shared taxi rides called “micro buses” are an extremely cheap form of transportation. Healthcare is also inexpensive. However, infrastructure problems like electricity and water shortages persist here.
Tunisia
Since Tunisia has a less developed economy, everyday expenses are very minimal. Things like taxis, restaurant meals, groceries, and entertainment are all low-cost compared to EU countries or America. Clothing and electronics are budget-friendly too. Rentals in small cities run under $400 per month. Tunisia also has nice beaches and historic sites to enjoy on a slim budget.
Vietnam
Extremely cheap living costs draw expats to Vietnam. Private apartments can be rented for as little as $200-300 per month in small cities. Even in Hanoi or Ho Chi Minh City, rental prices are around $500-700. Street food dishes are only a dollar or two. Labor is also affordable, so hiring domestic help is easy. The tropical climate means there’s no need to budget for winter clothes or heating bills either.
Bolivia
Bolivia is South America’s poorest country and has remained an exceptionally affordable place to get by. La Paz and other areas have experienced some inflation but still offer bargain prices on food, taxis, and housing. A budget hotel room can be found for around $20-30 per night. Three course meals at restaurants are often under $5 total. But poverty and infrastructure problems do persist here.
Ukraine
Even before the 2022 Russian invasion severely impacted Ukraine’s economy, it offered low costs for housing and day-to-day living. Things like grocery stores, restaurants, and public transit were all very cheap. Rental apartments could be found for $200-300 per month in cities like Kiev. Obviously political instability has increased dramatically, so safety is now a major concern.
Armenia
As a former Soviet Republic, Armenia has lagged behind economically. This Caucasian country borders Turkey and Georgia. Yerevan, the capital, is the largest city with modern conveniences. But smaller towns have very low rental prices under $300 per month. Fresh local produce is cheap. Day to day costs like taxis, coffee shops, and entertainment won’t break the bank either. However, utilities and internet may be unreliable.
Indonesia
Indonesian cities like Jakarta are now fairly expensive. But getting away from urban centers provides super cheap living in Indonesia. Smaller cities and towns have rental apartments for under $400 per month. Food at markets and street vendors is just a couple dollars a day. Labor is also inexpensive. This tropical Southeast Asian country does deal with pollution, traffic issues, and infrastructure problems though.
Cheapest places to live in the United States
The United States is divided into distinct regions, states, metropolitan areas, and towns that all vary in affordability. Some of the cheapest places to live in the US include:
Midwest Region
Much of America’s Midwest offers an affordable cost of living compared to coastal cities. Midwest states like Ohio, Michigan, Indiana, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and Nebraska tend to have lower prices for housing and other basics. Unassuming towns and small cities provide the best deals.
Southern States
The American South also has many cheap areas to reside. States like Georgia, Alabama, Mississippi, Arkansas, Oklahoma, Kentucky, Tennessee, Louisiana, and Texas boast affordable living, especially away from the busy metros. Rural towns offer the lowest prices on housing.
Rust Belt Cities
Former industrial cities in America’s “Rust Belt” tend to be more run down but very budget-friendly. Cities like Cleveland, Detroit, Pittsburgh, Buffalo, St. Louis, and Cincinnati all offer cheap real estate and rentals under $1,000 per month.
College Towns
Many American college towns have low costs of living, as they must cater to students. Places like Athens, Georgia; Columbia, Missouri; Ames, Iowa; Lawrence Kansas; State College, Pennsylvania and Terre Haute, Indiana offer room shares and cheap apartments.
| City | Average Rent For 1 Bedroom Apartment |
|---|---|
| Detroit, MI | $750 |
| Toledo, OH | $580 |
| Akron, OH | $600 |
| Dayton, OH | $640 |
| Canton, OH | $630 |
| Youngstown, OH | $590 |
| Lorain, OH | $700 |
| Hammond, IN | $830 |
| Muncie, IN | $650 |
| Terre Haute, IN | $730 |
Cheapest rural areas
Small towns and communities in rural locations also offer cheap costs of living. With fewer amenities and job opportunities, housing prices remain very low.
Midwest Rural
The vast rural Midwest has many farming towns with inexpensive real estate and rents under $500 per month. But job options are limited.
Southern Rural
Sleepy towns across the American south often have real estate selling for under $100,000. Monthly rents can be just a few hundred dollars. However, these isolated areas lack conveniences.
Desert Rural
Inexpensive rural communities are scattered across America’s desert southwest. But living in these dry, remote towns isn’t for everyone.
Northern Rural
Up north, rural regions with frigid winters have low prices too. But the climate is a challenge, and amenities are sparse.
Factors to consider
While rural and underdeveloped areas may offer rock bottom prices, they lack infrastructure, entertainment options, and conveniences. Remoteness and isolation can also be an issue. Cheap housing costs come at the expense of lifestyle drawbacks. But for retirees or remote workers who just want to pinch pennies, these trade-offs may be worth it.
On the other hand, living in a major metropolitan area with high-paying job prospects has much higher living expenses. So balancing affordable housing with transportation costs, utilities, and access to well-paying jobs is key for working professionals.
Healthcare costs, access to quality education, climate preferences, and recreation opportunities should factor into any relocation decision too. Ultimately finding the optimal place to live within your budget involves lifestyle considerations and career needs as well.
Conclusion
The cheapest places to live are found in underdeveloped and emerging market countries, rural regions, depressed areas, and smaller cities with weaker economies. But low living costs come with drawbacks like inadequate infrastructure, pollution, limited job prospects, and lack of modern amenities.
Finding an optimally affordable place to live while still maintaining a good quality of life involves balancing housing costs against transportation, utilities, healthcare, taxes, education expenses, weather preferences, and career opportunities. But those willing to make certain trade-offs can find many bargain locations worldwide to call home.