Where Data Tells the Story
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South America is often seen as one of the world’s more affordable regions to live in.
But new data suggests the cost of living can vary significantly depending on where you are.
According to 2025 data from Numbeo, Paraguay is the most affordable country in South America when comparing the combined cost of living and rent, while Uruguay is the most expensive.
NOTE: For this comparison, a combined score was calculated by adding Numbeo’s Cost of Living Index and Rent Index for each country. While this combined figure is a derived metric rather than an official Numbeo index, it provides a useful way to compare overall living costs across the region.
One of the more surprising findings is Brazil’s position near the top of the affordability rankings.
Despite being South America’s largest economy and home to major cities such as São Paulo and Rio de Janeiro, Brazil records the second-lowest combined score in the dataset.
Its relatively low Rent Index of 7.2 plays an important role in keeping its overall score down.
Meanwhile, countries such as Ecuador, Peru and Venezuela sit in the middle of the rankings, reflecting moderate overall costs compared with their regional neighbors.