San Jose: Most Expensive Homes in Costa Rica, Latin America and the Caribbean

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According to a recent report published by the Inter-American Development Bank (IADB), the capital city of Costa Rica is home to the most expensive and inaccessible real estate in the region. The IADB looked at 41 cities in the Latin American and Caribbean region and determined that only 29 percent of Ticos have the means necessary to acquire a home in the metropolitan area and its suburbs.

By way of comparison, 33 percent of residents in the cosmopolitan city of Buenos Aires can afford a home there, according to Montevideo-based online news outlet La Red 21. The most expensive real estate in Latin America can be found in San Jose, Caracas, Montevideo, Buenos Aires, and Santiago. The Brazilian cities of Brasilia, Curitiba and Porto Alegre are at about the same level as Montevideo, meaning that residents of those cities are more likely to afford homes there than their counterparts in San Jose.

According to La Red 21, a modest home in Montevideo costs about $36,500. In Caracas, that figure is closer to $54,000 and in Buenos Aires less than $45,000. In the far eastern suburbs of San Jose, a new three-bedroom home easily costs $145,000 (in Pinares de Curridabat).

Of all countries in the study, Costa Rica is one of the most expensive to live in, although in terms of quantitative and qualitative shortages, Tico homeowners do not have too much to worry about.

Overcrowding within residences is not an issue in Costa Rica or in Chile. Populous Brazil has the lowest overcrowding index. The countries with the most pronounced overcrowding are Nicaragua, Guatemala and Bolivia. While Costa Rica, the Dominican Republic, Mexico and Uruguay have plenty of homes available, Bolivia has a significant shortage.

Costa Rica and Chile enjoy the best housing infrastructure according to the report. The most deficiencies in infrastructure were reported in Nicaragua. Homeowners in Venezuela and Costa Rica are more likely to stay in their homes longer. Homeowners in Uruguay are more likely to engage in home flipping and upgrading to newer residences.

The home ownership rate in Costa Rica is currently at 72 percent, well under Venezuela, Brazil and Paraguay. It is important to note that the low housing shortages calculated by the IADB are based on income levels. Ticos may have a wider inventory of homes to choose from, but they are bound to pay a lot more to acquire them compared to other countries in Latin America.

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