The cheapest cities to live in (and how we measure cost)
CityLivably Editorial Team · Built on World Bank, WorldClim, USGS and FEMA/INFORM open data · Updated 2026
'Cheap' should mean real purchasing power, not a guess. Here's how we price cost of living from open World Bank data — and the cities that come out cheapest.
The most affordable cities sit in lower-price-level countries; Kotor, Montenegro ranks near the top. We measure cost from World Bank price levels (US=100) rather than crowd-sourced numbers.
Cheapest cities
- Kotor, Montenegro — cost score 57/100
- Playa del Carmen, Mexico — cost score 57/100
- Tivat, Montenegro — cost score 56/100
- Valletta, Malta — cost score 56/100
- Boquete, Panama — cost score 56/100
- Atenas, Costa Rica — cost score 56/100
- Puerto Vallarta, Mexico — cost score 56/100
- Quepos, Costa Rica — cost score 56/100
How we measure cost (legally and openly)
Instead of copying a crowd-sourced database, we use the World Bank's price-level ratio (PPP vs exchange rate) — open, citable data — so the cost score is original and verifiable. City-level refinement (US BEA/HUD rent) is the next layer.
FAQ
Where is it cheapest to live?
Lower-cost countries; Kotor is among the cheapest in our data.
Is cheaper always better?
No — cheap cities are often higher-risk or have harsher climates; that's why we score all three pillars.
Built on open data: World Bank (cost), WorldClim (climate), USGS/FEMA/INFORM (disaster risk). Transparent, verifiable estimates.