There is a severe shortage of housing in the country, so most people live in apartment accommodation. Due to high poverty levels the contrast between rich and poor areas is strong, particularly in biggest cities. Despite that, the cost of living is very affordable.
Lima
Lima, the capital of Peru and its largest city has a population of 8,472,935 people. It is the fifth largest city in the Americas and is Peru’s cultural and business center. Lima, compared to other South American metropolises, runs at a slower pace and is more tradition-oriented. Rich in history and culture, the city also has picturesque and calm beaches.
Lima stands as the 4th most expensive city in Latin America to live in, however it is still affordable. Some of the most expensive neighbourhoods include Miraflores, San Isidro, Santiago de Surco, La Molino and San Borja. Nonetheless, it is possible to find affordable accommodation everywhere. Much cheaper areas like Magdalena and Surquillo may not have Internet, cable TV or hot water.
Arequipa
Arequipa, in the south of Peru, is also known as the “White City”, has a population of 844,407 people. It is the second most industrialised city in Peru and a very essential commercial center. It can be said that the city is walkable and the temperatures there are very pleasant. Cost of living in the beautiful city of Arequipa is low compared to Lima, including the city centre.
Cuzco
Cuzco is a very touristy, famous destination. It was the capital of the historic Inca Empire and welcomes around 2 million tourists annually. The city has 358,935 inhabitants. It’s elevation is around 3,400 m (11,200 ft). Cuzco is a very busy touristy place, however one can find relatively cheap housing there, especially compared to Lima.
Trujillo
Trujillo is a city in northwest Peru, with a population of 920,734 people. The city is also known as: “Capital of everlasting spring”; the “Capital of the Marinera”, which is a traditional Peruvian dance; and the “Capital of culture of Peru”. The city is also very well-known among surfers. Trujillo is a cheap place to live, compared to other major cities in Peru, and especially compared to US or European standards.
Iquitos
Iquitos has a population of 457,865 people and is the largest city in the Peruvian rainforest. It’s nicknamed the “Capital of the Peruvian Amazon” and is Peru’s sixth largest city. The city has neighbourhoods with an Amazonian, a European and a bohemian atmosphere and attracts a lot of tourism. It is said to be the most heavily populated city in the world that is not connected to the mainland by a road - it is only accessible by plane or by boat. The city’s demography is the most multi-ethnic in the Peruvian Amazon. Housing prices in Iquitos are quite low.