8 cities around the world with the lowest cost of living and highest quality of life
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- Many Americans tell Business Insider how they moved abroad for more affordable and fulfilling lives.
- Mercer consultants identified cities that offer low costs of living and a high quality of life.
- The eight spots range from Old-World gems in Eastern Europe to a Canadian hub for food and culture.
As inflation continues to drive up the cost of everyday necessities, more Americans are looking abroad, hoping to find places where their money goes further and life is sweeter.
But where to go?
Researchers at HR and financial consulting firm Mercer analyzed over 200 everyday expenses, including housing, food, healthcare, and entertainment, in 226 cities worldwide to identify the most and least expensive spots. Mercer also weighed safety, infrastructure, environmental friendliness, and connectivity to determine eight cities in Europe, Asia, and the Americas that offer a balance of low living costs and high living standards.
To give readers a feel for day-to-day expenses in each city, Business Insider used cost-of-living data from Numbeo. Numbeo combines user-submitted spending figures with data from government institutions and service companies to estimate prices for various things, such as what it would cost a single person or a family to live in the city center. It also provides typical prices for everyday items like coffee, a meal for two, and a gym membership. While the methodology relies on crowdsourced data, which may vary widely, it can be a useful tool for getting a general sense of what it costs to live around the world.
Read on to learn more about eight cities that offer opportunities to live both cheaply and well, according to Mercer. They are presented in alphabetical order.
Business Insider used the latest population estimates from Demographia for all cities except Ljubljana, which uses a Slovenian government estimate. Numbeo expenses have been converted from local currency into US dollars.
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Population: 2.407 million
Known for: Budapest is the largest city in Hungary and the nation's capital. It's known for its Gothic architecture, bohemian nightlife, and historic thermal baths.
Average monthly rent for a one-bedroom home in the city center: $670
Monthly costs for a single person (excluding housing): $704.40
Monthly costs for a family of four (excluding housing): $2,490.90
Cost of a cappuccino: $2.49
Cost of a three-course meal for two: $52.34
Monthly cost of a gym membership: $54.72
Someone who lives there said: Budapest has a vibrant social atmosphere all year long, according to Sabrina Arnold, who lived there for four months. "There are so many things to do, even in the winter and summer. In the summer, there's lots of street food, festivals, lots of concerts and music, or you can just chill next to the river," she said in a YouTube video posted in late 2023. "In the winter, there's lots of Christmas markets and ice rinks."
It might be hard to live there because: That hustle and bustle may not be for everyone. "It's very touristy. There's always a lot going on in the city especially on the weekends. If you don't like that, then Budapest might not be right for you," Arnold said in her video.
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Population: 9.387 million
Known for: The capital of Malaysia, Kuala Lumpur is known for its rich multiculturalism, blending native cultures along with Indian, Chinese, and Western influences. The city, nicknamed KL, goes all out for major festivals including Diwali and Lunar New Year.
Average monthly rent for a one-bedroom home in the city center: $499.60
Monthly costs for a single person (excluding housing): $573.90
Monthly costs for a family of four (excluding housing): $2,035.40
Cost of a cappuccino: $2.89
Cost of a three-course meal for two: $27.13
Monthly cost of a gym membership: $43.56
Someone who lives there said: Kuala Lumpur's range of cultures translates to an unbeatable food scene. "A city after my own heart, the best activity in KL has to be eating! Malaysians love their food, and so do expats! Thanks to the diversity of the city, you'll find Malaysian, Indian and Chinese food all over, as well as western options and everything in between," blogger Lynne Lessar wrote in a post about living in Kuala Lumpur.
It might be hard to live there because: It can require some patience, especially with items and etiquette more common in other parts of the world. "The entertainment industry isn't exactly supported in Malaysia and alcohol is relatively expensive for the region," Lessar wrote. "Still, there are pockets of great nightlife and plenty of great things to do. Just bear in mind that Malaysia is not known for customer service, so keep your spirit light and patience high while you're out, as service takes time here."
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Population: 288,382
Known for: Ljubljana is the largest city and capital of Slovenia, a country located just east of Italy and sandwiched between Austria and Croatia. Ljubljana stands out for its charm and ease compared to other major European cities that get more flooded with tourists.
Average monthly rent for a one-bedroom home in the city center: $931.11
Monthly costs for a single person (excluding housing): $885.40
Monthly costs for a family of four (excluding housing): $3,023.90
Cost of a cappuccino: $2.34
Cost of a three-course meal for two: $63
Monthly cost of a gym membership: $45.45
Someone who lives there said: Aaron Arnold β who moved from Texas to Slovenia, where he lives as an expat β maintains that Ljubljana is one of Europe's best-kept secrets. "Although Ljubljana is growing in the tourism world, it's definitely not as big of a place like Budapest. I think of all the European capital cities that I know β Ljubljana is much more chill and more of a hidden gem," Arnold said in a YouTube video.
It might be hard to live there because: Adapting to Slovenian culture can be an adjustment for Americans, in part because locals may not be especially welcoming right off the bat, Arnold said in a different video. "I didn't actually make a friend from Slovenia until three weeks after my arrival," Arnold added.
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Population: 3.75 million
Known for: Montreal is a French-Canadian hub known for its vibrant cafΓ©s, nightlife, and packed schedule of summer festivals. The city is also dotted with historic architecture and European-style sights.
Average monthly rent for a one-bedroom home in the city center: $1,201.41
Monthly costs for a single person (excluding housing): $973.10
Monthly costs for a family of four (excluding housing): $3,593
Cost of a cappuccino: $3.52
Cost of a three-course meal for two: $69.93
Monthly cost of a gym membership: $37.12
Someone who lives there said: Montreal is a epicenter of vibrant culture. "No matter which neighborhood you live in, you're guaranteed that a trendy local spot is just around the corner," writer Rosemary Twomey said on the Montreal site MTLblog.com.
It might be hard to live there because: Winters are no joke in Montreal β the city averages 85 inches of snow a year. "Although the snow that never seems to disappear is one of the downfalls of Montreal, the city and the people in it are always up to the challenge of having fun in the cold," Twomey wrote.
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Population: 2.067 million
Known for: Panama City is the capital of Panama. It is known for its coastal lifestyle and, of course, its eponymous canal, which connects the Atlantic and Pacific Oceans.
Average monthly rent for a one-bedroom home in the city center: $1,050
Monthly costs for a single person (excluding housing): $831
Monthly costs for a family of four (excluding housing): $2,965.1
Cost of a cappuccino: $3.50
Cost of a three-course meal for two: $55
Monthly cost of a gym membership: $47.43
Someone who lives there said: "The city, Latin America's answer to Miami, is a place where towering skyscrapers meet the ocean, and palm trees sway to the rhythm of a unique cultural blend β Spanish vibes with various splashes of indigenous, African, North American and Caribbean influences," according to a blog post from the Nomad Capitalist, a site with advice and information for people who can work remotely and want to live abroad.
It might be hard to live there because: Panama City's laid-back vibe may be a good thing most of the time. However, expats have shared online that things get done at a slower pace than they're used to.
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Population: 7.099 million
Known for: Santiago's modern city center stands in contrast to the craggy Andes mountains in the distance.
Average monthly rent for a one-bedroom home in the city center: $503.71
Monthly costs for a single person (excluding housing): $729.50
Monthly costs for a family of four (excluding housing): $2,581.6
Cost of a cappuccino: $3.05
Cost of a three-course meal for two: $52.98
Monthly cost of a gym membership: $35.18
Someone who lives there said: "Santiago's mountainous backdrop makes for one dramatic skyline. I've lived here for a year and a half now, and (when I can see them) these mountains still surprise me every day," Lauren on Location, who calls herself a serial expat, said in a 2017 blog post.
It might be hard to live there because: Santiago is located on the San RamΓ³n Fault and experiences somewhat frequent earthquakes. According to Earthquake Track, the city had 43 earthquakes in the last 365 days.
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Population: 2.028 million
Known for: Warsaw is Poland's capital and most populous city. It has a rich history and many cultural attractions.
Average monthly rent for a one-bedroom home in the city center: $1,052.87
Monthly costs for a single person (excluding housing): $820.20
Monthly costs for a family of four (excluding housing): $2,694.10
Cost of a cappuccino: $3.94
Cost of a three-course meal for two: $50.54
Monthly cost of a gym membership: $39.55
Someone who lives there said: "First and foremost, Warsaw has got some lovely parks and plenty of museums," Richard Blanks, a native of Great Britain living in Poland, said in a blog post about Warsaw life as an expat. "There's no chance that you'll get bored here easily."
It might be hard to live there because: Warsaw can have stretches of fiercely cold temperatures. "The weather can be a significant drawback, with cold and long winters, and relatively short summers," Joshua Wood said on Expat Exchange, a site he cofounded.
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Population: 691,000
Known for: Zagreb is a city where Central Europe, the Mediterranean, and Southeast Europe meet.
Average monthly rent for a one-bedroom home in the city center: $748.67
Monthly costs for a single person (excluding housing): $797.50
Monthly costs for a family of four (excluding housing): $2,768
Cost of a cappuccino: $2.18
Cost of a three-course meal for two: $62.87
Monthly cost of a gym membership: $42.35
Someone who lives there said: "Zagreb is the cultural, political, and economic hub of Croatia. While it might be overshadowed by the Adriatic's coastal gems, this city has its own allure: grand Austro-Hungarian architecture, sprawling parks, and a blend of old-world charm and contemporary dynamism," Jonelle Simunich. a California native with Croatian heritage who has lived in cities around the world, wrote in a blog post.
It might be hard to live there because: Zagreb is heavily reliant on tourism, according to blogger Nicola Curtis, and some local businesses shut down during low season. "Most of the bars and restaurants close down from the end of October until the beginning of April, and while it's a chilled-out time, it can be a little boring at times," she wrote.
