Cheapest places to live in the Philippines6 min read

I’m sure you will agree that we all desire a certain standard of living. We want to be able to meet our physiological needs through the availability of affordable housing, and consumer goods.

This allows us to redirect our energy to other areas of our lives, leaving us feeling at least more fulfilled.

When it comes to standards of living or quality of life the Philippines is a very interesting place. Although a large portion of the country is living on a low income, there are still many paths peoples lives can take within the country.

So, what are our options?

I think it’s fair to say when it comes to those who like to “live large”, the majority of them are based in Manila, or the wider Central Luzon and Calabarzon.

Manila has moved towards what you would expect from a major city within most Developed countries. It is now a thriving centre for business, home to many high-end retailers and property developments.

The thriving business landscape around Manila, as well as the steady influx of foreign nationals, has – amongst other things – both helped to increase the wealth of many of the locals, as well as drive up the price of many essential goods, services, and real estate.

Despite all this, the country is still home to a large portion of people who are not privy or just don’t want to spend the kind of money which allows for a comfortable life in Manila. These people still want to experience a high standard of living but do not always have the financial means to achieve it in a city like Manila.

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Frugal living in the Philippines.

Whether you’re a Filipino who’s tired of the expensive city life, or a digital nomad looking for an affordable destination to start your journey, or maybe a retiree who wants somewhere to live which is both comfortable and affordable. There are many places within the country to suit all situations.

I’m looking at this guide from the perspective that my audience still want to experience a reasonably high standard of living, so I will be writing about the better quality, more developed cities in the country. This means you will still have a high level of safety in these cities, as well as still have access to the kinds of resources you would expect from city living.

I’ll begin with a personal favourite: Baguio

For me, one of my favourite destinations within the country is Baguio situated in the mountainous region of Northern Luzon. It is both a very beautiful and relaxing destination, and best of all, the prices there are noticeably more affordable than Metro Manila.

The city is home to very affordable real estate, where the price to rent or buy is significantly lower than Metro Manila. I also found that due to it being a smaller provincial city, the city is very easy to commute through, this translated to very affordable transportation costs while I was there.

Another small but possibly significant advantage is the climate. Baguio is notorious for its cool climate, this removes the cost incurred from having to run fans and air conditioners throughout the day, which translates to more savings.

Baguio has also attained its reputation ass a holiday hotspot for a reason. The city still offers all modern conveniences found in most other modern cities, it has a large shopping mall, as well as being full of quality restaurants. The city is also surrounded by beautiful mountainous landscapes which you can explore.

A thriving city for those living on a budget in the Visayas

Iloilo is another developed city which has been on my radar for quite a while. The city is known for its vibrant business district, while also being surrounded by some of the countries top attractions for tourism.

Despite that, the city still is a very affordable place to live. When comparing it to a place like Baguio, a lot of the goods and services are significantly cheaper. This is the kind of city which would suit those looking to maximise how far their money goes.

With its busy port, and thriving BPO industry, Iloilo is a business hot spot in the Philippines. Iloilo provides many entrepreneurial and employment opportunities for its residents, as well as very affordable living.

I also like Iloilo because of its location. Iloilo resides on the island of Panay in the Western Visayas region of the Philippines. On one side of that island is the internationally known holiday island of Boracay. Then closer to home, a short boat ride away from the city is the world-famous Guimaras – the mango capital of the Philippines.

Iloilo also neighbours Bacolod which is another thriving provincial city. So while you may be far from the National Capital Region, there is still a lot happening around Iloilo and the island of Panay.

Affordable living in the NCR

Another place I have been hearing a lot about recently is Cavite. The appeal with this province is that it is only 20 – 30 kilometres from Metro Manila. So people are able to enjoy the financial and lifestyle benefits of provincial living while also being able to easily have access to Manila

Goods and services may be roughly the same as what you would pay living within Metro Manila. But, the main advantage of Cavite is the real estate is a lot more affordable than living directly in Metro Manila.

Cavite is also home to many industrial and business park, so for those wanting to work locally, there are still many job opportunities. I have been to Cavite quite a few times and it does offer the feeling of provincial living – clean air, no crowds, but you are not as isolated as you may be in other provinces.

Some points to keep in mind

Although moving to the provinces sounds very attractive, like everything there still a compromises you need to make. One of the biggest ones being, although those destinations may be a lot cheaper, your salary may drop a little when working outside of Metro Manila.

That is why moving to the provinces may be a good idea for retirees, or those with flexible work arrangements like digital nomads. This means your salary is not reliant on your current destination, you still make the same money no matter where you are in the world.

Another point is moving to the provinces will limit your options when it comes to goods and services. You will have less choice when it comes to shopping, dining, mechanics and other tradespeople. As well as fewer options for transport, which is not always necessary anyway.

So if you’re looking to move to a different city, like anything, it’s about weighing up the pros and cons, then picking a destination which suits your situation.