Relocating to South America can deliver a high-quality lifestyle at a fraction of the cost of North America or Western Europe. This expert-level comparison examines the cost of living in Paraguay (Asunción) versus Buenos Aires, Argentina, and Medellín, Colombia, based on realistic expat expenses in 2025–2026, with all figures expressed in USD.
Rather than focusing on bare-bones survival budgets, this analysis reflects the costs of a comfortable, middle-class expat lifestyle. We break down the most important spending categories — including housing, groceries, transportation, healthcare, internet, coworking, and leisure — to help digital nomads, retirees, and long-term expats accurately plan monthly budgets.
Asunción consistently emerges as the most affordable capital city in Latin America, while Buenos Aires and Medellín offer very different lifestyle-to-cost trade-offs. Beyond headline prices, we also examine practical realities often ignored in generic guides, such as currency volatility, Argentina’s chronic inflation and “blue dollar” exchange rate, and how each city’s infrastructure and stability affect daily expat life in South America.
Why Compare Asunción, Buenos Aires, and Medellín?
These three cities represent distinct relocation strategies rather than variations of the same experience:
- Asunción (Paraguay) – ultra-low cost of living, high macroeconomic stability, territorial tax system
- Buenos Aires (Argentina) – rich culture and lifestyle depth, offset by extreme inflation and currency risk
- Medellín (Colombia) – established digital nomad hub with solid infrastructure and moderate costs
Understanding the true cost of living beyond surface-level prices is essential when planning long-term relocation, retirement, or residency in South America.
Housing and Rent
Access to quality housing at relatively low prices remains one of South America’s strongest advantages. While all three cities offer affordable rentals by global standards, pricing stability, legal risk, and long-term predictability vary significantly.
Asunción, Paraguay
Asunción offers the lowest and most stable rental market of the three cities. A one-bedroom apartment in central neighborhoods typically rents for 3.3–3.5 million PYG (approximately $400 USD per month). Outside the city center, comparable apartments are commonly available for 2.5–2.7 million PYG ($300–$335 USD).
In practical terms, comfortable, expat-friendly apartments in good neighborhoods are widely available in the $300–$450 USD range, with larger units and even small houses still well below regional averages. Rents are usually denominated in Paraguayan guaraní and have remained remarkably stable, making budgeting predictable for retirees and long-term expats.
Buenos Aires, Argentina
Buenos Aires presents a more complex rental landscape. Official listings suggest average rents of $480 USD in central areas and $360 USD outside the center for a one-bedroom apartment. However, Argentina’s inflation and capital controls significantly distort real costs.
In practice, many foreigners pay $300–$400 USD for high-quality apartments in prime neighborhoods by:
- paying in USD cash
- negotiating directly with landlords
- using the unofficial “blue dollar” exchange rate
That said, Buenos Aires carries higher structural risk. Many landlords price rentals directly in USD, lease terms are often short, and costs can shift rapidly with economic policy changes. While attractive for USD earners, Buenos Aires is far less predictable than Paraguay or Colombia.
Medellín, Colombia
Medellín sits between Asunción and Buenos Aires in terms of rent levels. One-bedroom apartments in popular areas such as El Poblado or Laureles typically cost $470 USD in central locations and $350–$380 USD slightly farther out.
Modern high-rise buildings with amenities — security, gyms, pools — are common, generally priced between $400 and $600 USD. Demand from digital nomads has pushed prices upward in top neighborhoods, though Medellín remains affordable by international standards.
Housing Cost Takeaways
- Asunción offers the best value and lowest risk
- Medellín remains affordable but faces upward pressure in prime areas
- Buenos Aires can be cheap in USD terms, but with significant currency and legal uncertainty
Overall, expats earning in USD can comfortably rent a modern one-bedroom apartment in any of these cities for under $500 USD per month, with Asunción often below $350 USD for comparable quality and space.
Groceries and Local Dining
Daily food costs are remarkably affordable across all three cities, especially when focusing on local products. However, differences in price stability, variety, and inflation exposure matter.
Asunción, Paraguay
Asunción delivers the lowest grocery prices and the greatest stability.
- Milk (1 gallon): ~$3.00–$3.20 USD
- Bread (basic loaf): ~$0.60 USD
A single person cooking at home can comfortably spend $150–$200 USD per month. Dining out is equally affordable, with local lunches often costing $4–$5 USD. While the restaurant scene is smaller, the cost-to-quality ratio is excellent.
Buenos Aires, Argentina
Buenos Aires offers outstanding culinary quality, though prices fluctuate due to inflation.
- Monthly groceries: $200–$300 USD
- Inexpensive restaurant meal: $8–$12 USD
- Mid-range dinner for two (with wine): ~$40 USD
For USD earners, Buenos Aires arguably delivers the highest gastronomic return per dollar in South America — albeit with volatility.
Medellín, Colombia
Medellín strikes a balance between affordability and variety.
- Monthly groceries: $200–$250 USD
- Menu-of-the-day lunch: ~$6 USD
- Nice dinner for two: $25–$30 USD
Colombia’s agricultural base keeps produce affordable, while modern dining options appeal to nomads who eat out frequently.
Food Cost Summary
- Asunción: cheapest and most stable
- Buenos Aires: best culinary depth for USD earners
- Medellín: balanced, nomad-friendly ecosystem
Healthcare (Insurance & Medical Costs)
Healthcare quality is high and costs are dramatically lower than in North America or Europe — but system structure matters.
Buenos Aires, Argentina
Argentina offers free public healthcare for everyone, including foreigners. While this provides a strong safety net, long wait times push most expats toward private clinics.
- Private doctor visit: $20–$50 USD
- Private insurance: $100–$200 USD/month (optional)
Asunción, Paraguay
Most expats rely on private care due to affordability.
- Private doctor visit: ~$20 USD
- Specialist visit: $30–$50 USD
Many expats use a pay-as-you-go approach, skipping insurance entirely due to low costs.
Medellín, Colombia
Medellín offers a hybrid system with excellent infrastructure.
- Public EPS insurance: $30–$60 USD/month
- Private visit: $25–$30 USD
Several hospitals are internationally accredited, making Medellín a leader in medical tourism.
Healthcare Verdict
- Buenos Aires: free public safety net, but instability risk
- Asunción: lowest private healthcare costs
- Medellín: best balance of structure and quality
Internet, Coworking, Transportation, and Leisure
Across all three cities:
- Internet + mobile: $20–$40 USD/month
- Coworking: $50–$180 USD/month
- Transportation: $5–$40 USD/month
- Gyms, cinema, dining: fraction of Western costs
Each city supports a high quality of life with minimal overhead, allowing expats to redirect spending toward travel, investments, or lifestyle.
Cost of Living Comparison Table (2025-2026)
Below is a side-by-side comparison of average costs in Asunción, Buenos Aires, and Medellín for key expense categories. All prices are in USD (converted from local currency), using mid-2025 rates. Actual costs will vary by individual lifestyle, but this gives a sense of the monthly budget for a single person (excluding any major one-time purchases or luxury expenses).
| Expense Category | Asunción (Paraguay) | Buenos Aires (Argentina) | Medellín (Colombia) |
|---|---|---|---|
| Housing – 1BR Apartment (City Center) | ~$400/month | ~$480/month | ~$570/month |
| Housing – 1BR Apartment (Outside Center) | ~$300/month | ~$360/month | ~$360/month |
| Groceries (Monthly Basic Basket) | ~$180 (very low; local staples) | ~$250 (inflation-prone) | ~$220 (affordable fresh produce) |
| Local Dining (Inexpensive Meal) | $4 per meal | $10 per meal | $6 per meal |
| Healthcare – Doctor Visit (Private) | $20 (GP consult) | $30 (GP consult) | $25–$30 (GP consult) |
| Healthcare – Insurance (Monthly) | ~$75 (private plan) | ~$50 (basic private or $0 public) | ~$30 (EPS public) / $100+ private |
| Internet (Home Broadband) | $18/month | $23/month | $20–$30/month (varies by provider) |
| Mobile Phone (10GB Data Plan) | $12/month | $15/month | $5–$10/month |
| Coworking Space (Hot Desk) | $60–$65/month | $60–$70/month | $180/month |
| Public Transport (One-way Fare) | $0.45 (bus) | $0.40 (bus/subway) | $0.70 (metro/bus) (≈2,800 COP) |
| Public Transport (Monthly Pass) | $31 | $8 | n/a (pay-as-you-go, ~$30 for regular use) |
| Taxi/Rideshare (3–5 km ride) | $4 | $2 | $6 |
| Leisure – Gym Membership (Monthly) | $25 | $25 | $20–$30 (typical gym) |
| Leisure – Cinema Ticket | $5 | $5 | $4–$5 (varies by theater) |
(Table notes: Currency conversion used mid-2025 rates. Buenos Aires prices assume USD blue rate value, which benefits foreigners. Medellín transport has no unified monthly pass, so we estimate monthly cost. “Groceries” is a rough monthly spend for one person cooking at home. Insurance in BA: public system is free; $50 is an estimated basic private plan. Medellín insurance: $30 is public EPS for one person.)
As shown above, Asunción is cheapest in nearly every category, with exceptionally low housing, food, and transit costs. Buenos Aires, despite being a large cosmopolitan city, remains highly affordable for those with foreign currency– housing and everyday expenses are low, though inflation requires one to keep an eye on peso prices (they can change monthly). Medellín is a bit more expensive than BA or Asunción in some categories (rent and especially coworking), but still inexpensive by global standards and offers excellent value in healthcare and groceries. In all three cities, a frugal single person can live on under $1,000 USD per month comfortably (many do on ~$800 in Asunción or ~$900 in Medellín). With a budget of $1,500–$2,000/month, one can enjoy a very comfortable lifestyle in these cities, dining out often, renting a nice apartment, and partaking in plenty of leisure activities.
Which City Is Right for Your Life in South America?
Choosing between Asunción, Buenos Aires, and Medellín ultimately goes beyond pure cost comparisons. While affordability is a major advantage in all three cities, culture, climate, pace of life, and personal priorities play an equally important role in deciding where to settle.
Buenos Aires delivers a true big-city expat lifestyle in South America. With its European architecture, café culture, arts scene, and nightlife, it offers a level of cultural depth rarely matched in the region — and at a cost that remains shockingly low for a capital of its size and sophistication. For those who thrive in dynamic urban environments, Buenos Aires remains hard to beat.
Medellín appeals to expats and digital nomads who prioritize climate, scenery, and community. The city’s year-round “eternal spring” weather, mountain setting, and well-developed nomad ecosystem make it one of the most livable cities in Latin America. Costs are moderate rather than ultra-low, but still highly attractive compared to North America or Europe.
Asunción, by contrast, stands out as a quiet, safe, and ultra-affordable base. It may not offer the cultural scale of Buenos Aires or the social density of Medellín, but for those seeking stability, simplicity, and low expenses, it excels. And to answer the common question — is Asunción cheap? — the answer is unequivocally yes. It consistently ranks among the most affordable capital cities in the world, making it especially attractive for retirees, long-term expats, and anyone building a cost-efficient base in South America.
What all three cities demonstrate is that expat living in South America can be remarkably affordable without sacrificing quality of life. With housing, food, healthcare, transportation, and entertainment costing a fraction of Western prices, expats are free to focus less on expenses and more on culture, community, and personal freedom.
Whether you choose the cultural intensity of Buenos Aires, the lifestyle balance of Medellín, or the cost-efficiency of Asunción, each city offers a compelling pathway to a high-quality, cost-effective life abroad.
Bienvenido to South America — where living well doesn’t have to cost a fortune.
Sources: Recent cost-of-living data and expat reports were used for 2025 prices, including Numbeo/Wise databases, Expatistan comparisons, and local expat resources. All prices are in USD for ease of comparison. Be aware that actual expenses can vary; always double-check the latest exchange rates and local conditions when planning your move. Safe travels and happy budgeting!
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