From the Midwest redneck author of "The Rooster Crows at 4am!," "Lizard Poop!," and "The Philippines Expat Advisor"
International Cost of Living Index: Manila or St. Louis, Mo. Which is Cheaper?
What is the cost of living in the Philippines compared to living in a big city in the Midwest, St. Louis, Mo., for example? How does living in Manila stack up against the Gateway to the West? A recent comment by Randy L about cost of living comparisons gave me the idea for this post. A big thanks to Randy for giving me that brainstorm. My brain needs all the help it can get.
I decided to use a website, Expatistan.com for this article. To calculate each cities' Cost of Living Index value, the site starts by assigning a value of 100 to a central reference city (that happens to be Prague.) Once the reference point has been established, the Price Index value of every other city in the database is calculated by comparing their cost of living to the cost of living in Prague.
Thus, if a city has a Price Index of 134, that means that living there is 34% more expensive than living in Prague.
So I compared the cost of living in four cities in the Philippines, located in different regions, against St. Louis. Why St. Louis? It's in the Midwest where I originate from and not too far from where I lived in Central Illinois, only about an hour's drive away.
But first, let's explain that all of the figures and international living cost of living figures from the website are only estimates or guesses. Expatisan depends on reader input for their price and cost information. That said, the comparative costs of each city from the website could interpreted perhaps as "ballpark figures."
Let's look at the first screen shot from the website, Manila and St. Louis:
Manila, located in the National Capitol Region, NCR, of the Philippines is 26% cheaper to live in than St. Louis. Interesting to note that though food prices in Manila are close to half of what they are in St.Louis, clothing costs are 63% higher. Doesn't anyone that filled in the price info for Manila go to ukay-ukay stores? They must shop at the most expensive shops at the SM Mall of Asia.
Note that housing costs in Manila are only 5% cheaper than St. Louis. Savings in food and transportation, along with cheaper personal care expenses and entertainment, helps make Manila less expensive to live in compared to the home of the St. Louis Cardinals (best baseball team in the world!)
Now let's take a look at the cost of living in Cebu City as compared to St. Louis:
It's 31% cheaper to live in Cebu City, located in the Central Visayas region of the Philippines, as compared to St. Louis, Mo. Food costs are comparable to Manila but look at the huge difference in housing expenses. While Manila was only 5% cheaper in that category, Cebu City is 41% cheaper. Transportation and personal care costs were ranked higher than Manila.
Check out the next chart from the website. Looks like Bucharest, the largest city in Romania, could be cheaper to live in. 1 USD=3.81833 RON, the Romanian Leu as compared to 1 USD=42 Philippine pesos. I think I'll stick with living in the Philippines. I suspect the weather might be slightly warmer and I probably have more American expats to hang out with in the PH.
My asawa and I live in Iloilo City in the Western Visayas region of the Philippines. The next screen shoot shows how "The City of Love" stacks up against St. Louis.
The Expatisan website reveals that it's 40% cheaper to live in Iloilo City as compared to St. Louis. Housing is 60% cheaper (we rent a three bedroom home in a modern subdivision for only 140 USD a month) but food costs are only 12% cheaper.
If you're eating out at fast food restaurants all the time in Iloilo where a guy can get a Big Mac, Coke and fries for around 3.25 US Dollars, I guess the food costs could add up. But if you shop at the local wet markets and eat more rice and fish, you could save a lot of money. Fresh fish is available in Iloilo City on a daily basis and you can buy a kilo of some decent fish for 1.90 USD a kilo.
I also noticed that clothing costs are slightly higher but transportation costs are 49% cheaper. My American expat friend, Scott B, and I will continue to ride those jeepneys, or "cheapneys" as I like to call them. At P7.50 a ride, you can roam all around Iloilo City on the cheap.
Here's a chart that compares the cost of living in Iloilo to Sydney and Brussels along with St. Louis:
And where is one of the cheapest places to live in the Philippines as compared to St. Louis, Missouri? The winner is: Davao, located in Southern Mindanao. Here's the chart with the cost of living comparisons:
Check it out! Davao is 56% cheaper to live in than in St. Louis! The clear winner. In every cost category, this "Asian City of the Future" beats out Manila, Cebu City and Iloilo City as the cheapest place to live in the Philippine, as compared to St. Louis, in this international cost of living comparison.
Here's how Davao stacks up against some other cities.
OK, you expats living in Davao or in Mindanao, what are your thoughts on why it's cheaper to live in Davao or the general region? I know it's a huge agricultural area. What's your input on this? Thanks in advance.
Great info Dave. As a footnote to clothing costs, and if you are going to live a kick-back lifestyle (like me or Dave) in the tropics, then a wardrobe consisting mainly of shorts, t-shirts, and flip flops will suffice. And, as compared to a full cold climate wardrobe or a “business casual” or “working” wardrobe, then clothing costs are not that significant. And if you intend on living a really isolated lifestyle, dressing like Tarzan and Jane will really save the peso’s! (does anyone want to buy about 25 neckties?
)
Randy stole my thunder, Just bring a nice pair of dress shoes and a pair of dark slacks when you move, buy a Barong Tagalog when you arrive and your set for every fancy occasion you can imagine. Other than that Shorts and a T shirt. IMHO unless you are a really picky eater (if so you might want to reconsider moving to the Philippines) the major costs will be housing and electricity. I know this is simplistic, but when a cheap haircut is 8USD in the states and 40 pesos in Manila (90 cents) how can you go wrong?
They are exactly right on clothing. I know if I put on a pair of pants people will ask if I have an appointment, lol.
Wow Dave, you almost hit my home town. I’m just 113 miles south of the big STL. I’m with you on the clothing and food costs. I don’t need fancy clothes or eating out all the time. If you do, then Mall of Asia or SM will certainly take your money.
Don’t forget about cheap San Mig prices. Beer here can cost at least $2.50 U.S. and most times it is $3.50-$5.00.
It is more fun in the Philippines
Scott, I’ve already figured out that I will save over $300 p/year on haircuts alone. That’s a lot of cold Sammies!
If you really want to get down to calculating some savings, you can live in the RP without a car and the associated outrageous costs of operation. Where we live in Tupelo, MS, we currently own 2 vehicles with NO payments and the approximate basic annual costs of operating our vehicles (with no repairs) are as follows:
Fuel – $4,400
Maint- 1,200
Insurance – 650
Registration – 255
Total………..$6,455
Keep in mind our commute to work is only 8-10 minutes, we pay no tolls, and pay only liability insurance. Registration is Advalorem based and decreases each year. I can only imagine what the costs would be if we lived in a bigger city, had lengthy commutes to work, and had $400-600 in car payments added with full coverage insurance.
When we get to the RP, we will forgo having a vehicle until we feel it is an absolute necessity. The family has a vehicle that we can make use of if needed.
The above annual costs breaks down into about $538 per month and will could more than cover our entire housing and utilities costs if we didn’t already have a home to live in. When you begin to break down all expenses of living in the USA and compare the costs of living in the RP, you can see how it can be much more affordable and less stressful than life in the RP. I guarantee I will not miss the responsibility of auto ownership…at least for awhile, and the money we will be saving will more than offset the loss of income needed to just survive in the USA.
Ignore my math skills!
($6,455 should be $6,505.)
Yep, you’re right, Randy. Shorts, t-shirts and flip-flops are all you need. I wore my Levis to Guimaras the other day and shocked Scott B. He had never seen me wear anything but my standard cargo shorts and t-shirt. Just wanted a change that day.
I’ll have to pass on dressing like Tarzan, Randy. That would be best for all of my neighbors.
Good point, Scott h. I did bring my only pair of dress shoes and I did purchase a Barong Tagalog here. That will suffice for all weddings and other fancy functions, as you noted. I hate wearing my Barong Tagalog, though. Sweat like a pig in it.
And yes, housing (P6,000) and electricity (average P3.400) are the biggest expenses we have along with food. Thanks for your input, Scott h.
That’s true, Mark G.
We were about the same distance from St. Louis, Randall. Gotta love those Cards! And how could I forget the beer prices? You can get a bottle of Gold Eagle for P13 (31¢) or San Miguel Pale Pilsen for P28 (67¢). Can’t beat those prices.
Great article and website reference. My wife is from Tagum and I have been there 4 times past year. She has been in Chicago for 3 months now and she is amazed at what I spend for car, gas and groceries and shopping. Retirement is in my 10 year plan. Davao to Chicago came up 64%. I will be getting yours and Bobs ebooks to work on my plan to make by then in 10 years. Now just cant wait to return when my asawa EAD/AOS/AP is done.
Thanks for the breakdown, Randy. Unless you have a business in the Philippines that requires a vehicle, I don’t see any need to own one. I love not having to pay those costs every month and have no problem at all using the public transportation, jeepneys or trikes. We’ve lived here three years now and have managed just fine without one. I don’t have the stress of driving and worrying about hitting someone’s rooster or pet gecko on the road (or worse.) Sure it’s more convenient, but that doesn’t justify the cost of owning a vehicle here for me.
I don’t feel the need to “keep up with the Joneses.” There are quite a few private vehicles in our subdivision, but I believe it is a status symbol for a lot of folks. Many have family working abroad as OFWs and the relatives send them money to buy a new SUV. Our neighbor, Jesus, for example, has a wife working in Lebanon. Been there for 17 years. They purchased a new SUV last year for 1.6 million pesos, 38,000 USD. They already have the small truck they deliver tubig in and Mike, son of Jesus, has a car that runs (though not very well.) I’ll keep walking and hopping on the jeepneys.
It’s OK, Randy. I didn’t add up your figures, it’s 4 am in the morning here.
Thanks and good to hear from you Bret. Chicago? My vehicle expenses were high enough in Springfield, Illinois, where I worked. Couldn’t imagine what they would be like in Chicago.
You have a good plan, Bret. It’s smart to do some research before you make your actual move. I hope the next ten years pass by quickly for you. Thanks in advance for the ebook purchase. And you’re making a good choice in buying Bob’s book, too. He’s a good guy.
OMG – I just figured out what it costs me a year – 10k. Course I do love driving me car
Regarding the math on the tool. OK, I am an engineer but that doesn’t mean my math skills are great. However, the way I read the comparison is different from others. If the tool says that Portland, Oregon is 144% of Davao, that would seem to mean that Portland is 44% more expensive than Davao (based on our notion of what 100% means). But it doesn’t mean that. It literally means that Portland is 144% higher than Davao – nearly 2 1/2 times as much. For example Portland’s food is 102% of Davao’s which made no sense to me. But when I looked at the actual numbers, the cost is double that of Davao, 102% higher.
OTOH, if I am incorrect please don’t tell my employer – they dramatically overpay me as it is.
DaveW, it’s actually depressing when you think of how many hours of work is needed to support your own ride.
Good article Dave, (This is Dave S for anyone who cares to respond) and good comments. I’ve written several times about Expatistan and several other similar cost comparison tools.
The issue I have with the continual expat fixation on cost of living is, the actual cost of living in the Philippines depends much more upon the individual than upon where s/he lives.
The frequent ballyhoo about cheap provincial living is true .. until you have business or immigration or in particular medical issues and have to make repetitive trips to Manila.
Actually I live just a few mile outside Metro Manila and I _can_ live every big as cheaply here as anyone in any province.
However the main issue is, do I want to (or have to becuase of limited income).
Example. I’ve had a car of my own for more than 50 years now. So I bought a car when I got here.
I will continue to have a car until such time as I can’t handle driving any longer .. and then I’ll still have a car becuase my P8,000 a month driver/houseboy/administrative assistant is a good driver.
But that’s a totally personal/optional decision, nothing to do with basic costs of living. And, as Dave D points out, I can go any place in the Philippines cheap via Jeepney, tricycle, habal habal, ferry, bus or amazingly cheap in-country air fares.
We bought the house I was renting. It cost less than $140 US during the years we lived in it before deciding to buy it. We bought it mainly to give us the freedom to make changes in it that we wanted to. So my housing expenses are significantly more than $140 a month right now. But there are still any number of sub-$150 USD three bedroom houses available within one Jeepney ride of downtown Manila.
As you can see, that makes the ‘cost of living’ here in Marilao a LOT different depending on who is making the decisions on how to spend their money … hardly at all upon the location.
My main caution to fellow expats is, Do NOT move to the Philippines becuase of the cheap living. There’s an old saying about the “sweetness of low price rapidly going sour becuase of poor quality”.
You have to put up with a LOT to live in the Philippines that has nothing at all to do with the “cost of living” in an accountant’s definition.
But, then again, “It’s More Fun”???
DaveW, I enjoyed driving my Chevy trucks back in Illinois, but I’ve learned to adapt and leave the driving to the local jeepney and trike drivers. But I can tell you that I had a blast driving on the interstate all night when I made one of those 28 hour non-stop trips (well, I did get gas and pee, just took some fast food and ate it in the truck) from Illinois to Vegas.
I’ll go with your figures, DaveW. Math was my downfall in high school and poor math grades took down my grade average. I finished 15th in a class of 124 but think I could have made into in the top ten if I understood even a little amount of math.
Now I just use a frickin’ calculator.
Shoot, you guys are getting me depressed and I don’t even own a vehicle now.
Thanks, Dave S, I had you in mind when the study covered Manila and when I discussed about not owning a vehicle in the Philippines. It’s all a personal choice and your statement “the actual cost of living in the Philippines depends much more upon the individual than upon where s/he lives” is absolutely correct. I always stress “location” and “lifestyle” but I see your point.
I have some American expat friends that do own vehicles. They have children or relatives that need a ride to school. During the rainy season, that’s a big plus. One of our friends, James, who lives in our general subdivision, is kind enough to take my niece and nephew living with us to school everyday. His niece attends the same high school. He doesn’t have to do that, but he’s a nice guy. I know the kids will have a safe ride to school without the hassle of catching three different jeepney rides. The kids are able to catch only one jeepney ride home which works out fine.
I think you’re smart for buying the home, Dave S. If the present situation with the uncontrolled dogs that roam through our neighborhood tearing up garbage cans and spreading trash doesn’t improve, we probably won’t stay here and build/buy a place. But I like to have the freedom to make our home the way we want, thus, we’ll not rent once our other retirement funds become available.
Thanks as always, Dave S. Great stuff. We’re going to need a score card around here to keep track of all the “Dave’s.” But you other “name-challenged” guys out there without the “Dave” moniker, keep in mind that “Dave’s” worldwide are generally a very intelligent and handsome lot.
Enjoy your article, Tokayo. I am another David from Marinduque or Northern California depending on the seasons of the year. Just call me Tokayo or David K. I say Amen to Dave Star comment. Cheers to All and have Fun in the Philippines!
Thanks for the comment, Tokayo. You’re further evidence that all Dave’s are intelligent and good-looking guys.
I to own a veh in the Philippines. Its ok not owning one if you do not like getting out of your comfort zone of always traveling from A to B. I owned one in late sixtys when living there and gas was only 16 cents a gallon on the base. Would drive around Luzon to check out other areas of the Island. I do the same now. I have house on Samar and when I get bored of seeing the same scenery I tell my wife lets load up the L-300 with the tribe and go to the other side of the Island and see how are neighbors are doing and living. You would be surprised how many wants to go because they have never seen the pacific ocean. I like checking out where no foreigner has gone before. I have taken bus to Manila several times to see what horse crap the locals have to put up with just to get to their destination. If they was operating in the states the goverment would put them out of business real quick by the way they treat the people and no facilities.
Dave S here. Thanks for pointing out another reason I have found my car 7-seater AUV, actually, invaluable.
Family. I have very large family by marriage, many of whom are important to me and who treat me as a ‘real’ son, nephew, uncle, ‘primo’, etc. I have enjoyed many times taking my wife’s parents when they were alive (RIP, Momma and Daddy), taking my 97 yo uncle and my dear nieces and nephews places they need to go/haven’t been before/are difficult to get to by bus or tryci and such.
The car has been a real blessing, and the costs of running a car here are so, so cheap compared to the US that I just wouldn’t be without one.
Dave dW mentioned one important thing too .. rains. We have a lot of rain here on Luzon and we have a LOT of ‘baha’ … flooding.
Try finding a cab and see how long the jeepney or FX queues are if you are trying to get home from the city in the rain on a cheap jeepney fare.
You’ll get home, eventually, and it will be cheap, but that’s not the way I choose to live.
I agree that a vehicle would be nice to roam around in, George, and see the sights. It’s just not in our budget right now, and I refuse to add a SUV payment to our budget right now as some expats I know have done. I plan to plunk down cash for any vehicle we MAY purchase in the future and I emphasize MAY.
We don’t have a really large family we have to haul around, and I have no desire to drive around in all the traffic. I can barely see at night, even with contacts or glasses, and would only consider purchasing a vehicle in the future if we had a driver. That said, if my asawa continues to express her desire to own one once our funds become available, you married guys out there know what I just said is all pure horse pucky.
and I deny writing any of it.
Thanks Bro Dave…You are putting all the pieces of the puzzle in perspective…So like you say, “you have to spend some time here to see if you like it.” I am going to give it a try…Lord knows my $$ travels farther, and with some impending political doom the US may not be the best and the brightest! Thanks, and If I come visit will there be Lizard Poop?
Dave S, please see my response to George who also owns a vehicle in the Philippines. I’m surely not against anyone owning a SUV or AUV or whatever here, it’s just not for me, and I don’t see the need for one. As I replied to George, we don’t have a large family to haul around. I’ve never had any trouble catching a jeepney in heavy rains here, and I’m in my third rainy season. I DID have trouble catching cab drivers who refused to go on meter at Fairview SM when we visited last year to get my 13a Permanent Resident visa, but it really hasn’t been a problem for us in Iloilo.
Btw, I hope the Philippines doesn’t start slapping a GPS on vehicles and charge a usage tax as I’ve heard some cities in the United States are now planning to do. Big government. You just gotta love it.
Plenty of lizard poop, Don. I checked my cup I keep in the Cr, comfort room, restroom, and it had a few little chunks of lizard poop in them. I use it to rinse out my mouth when I brush my teeth. I just rinsed it out in cold water. Don’t have any hot water. Hope you make it over for a visit, would love to meet up with you. Plenty of poop to go around.
Tanks Dave- You are a bastion of education!
SeeYa’
Don E
Thanks, Don. Looking forward to your arrival in the Philippines, good luck to you my friend.
Dave,
Thanks for the good info. My G/F Anne just sold her Ancestral home in Batangas for a good price of $70,000.00. She’s in the process of buying a house in a nice gated subdivision in Bacoor Cavite, 30 minutes south of Manila for 1.8 millionP. She had the foresight to start saving money and placing it in a Housing Development Mutual Fund called Pag Ibig when she was 19. She is now 37 and she has enough money to pay for more than half of the house and she will pay for the rest with the sale of her ancestral home. She may also buy a van for her business, but no other vehicles. I will probably go the jeepney way mostly. Sounds like Anne has the same thrifty traits as Melinda lol. Take care. time is getting closer my Oct visit.
That’s a great price Anne got for her Ancestral home, PapaDuck. Sounds like you’ve got a winner there. Smart lady and smart saver. It’s always good to hear a success story from the Philippines and your G/F is certainly one of them. Looking forward to your October visit. Take care.