Warmest & Cheapest Place to Live in the World

There’s warm, and then there’s hot. There’s cheap, and there’s… dirt cheap. If you’re looking to relocate, perhaps with a warmer climate and lower cost of living, there are many options. Narrow your search by considering the size of the town you want to live in, language requirements of the place, and the type of lifestyle you desire.

According to "The Economist," the three cities in the world with the lowest cost of living are Karachi, Pakistan, Tehran, Iran, and Mumbai, India. The average high temperature in both Karachi and Mumbai is 87 degrees, while Tehran’s annual average high is 73. While these cities may be both cheap and very warm, they may not be the safest places for non-natives.

According to the National Climatic Data Center, the hottest temperatures ever recorded were in Libya; Death Valley, California; Altar, in western Mexico; and Israel. Of these locations, most are in dry, desert-like environments, without much else to recommend them than their heat. However, if you move slightly farther afield, a similar climate with cheap living expenses--and a much more inhabitable environment--can still be found.

Bangkok, Thailand, is a sprawling, growing metropolis that the World Meteorological Organization cites as one of the hottest cities in the world, because its temperature does not vary greatly with seasons or even time of day. The city is fairly inexpensive, though like many other metropolises, prices are rising. Rio de Janeiro, Brazil, has similar features, and like Bangkok, there is a wide social division between the very wealthy and the very poor.

Central America has many small towns with a very warm climate and very low costs of living. If you’re looking for a slower pace of life, towns like Barra de Santiago, El Salvador; Caye Caulker, Belize; and Puerto Vieja, Costa Rica, offer a good mix of year-round warm weather, friendly people, and very affordable room and board. A little farther south, Cajamarca, Peru, and Isla del Sol, Bolivia, are also great small towns.

Asuncion, the capital of Paraguay, right in the heart of South America, may be a good bet. It is on the top 10 list of cities with the lowest cost of living, and its average temperature is around 85 degrees. It has a relatively low crime rate, is filled with beautiful colonial architecture and is relatively off the beaten path.

The state of Baja California, in western Mexico is a popular expatriate destination. Towns like Rosarito, Ensenada, San Felipe and Loreto Bay maintain the year-round temperate climate the area is known for, while offering a much cheaper option than Southern California cities like San Diego, which is a still a short drive away.