If you're planning to live in Cuenca, you should know that it's the most expensive city in Ecuador for renting, according to data from the National Institute of Statistics and Census (INEC). The average monthly rent in Cuenca is $246.88.

For comparison, rents in other cities are lower: Guayaquil averages $206.31, Manta $209.18, Quito $195.60, Loja $193.11, and smaller cities like Santo Domingo are even lower at $171.18.

Rental Options for Every Budget

Real estate agent Sofía Pacheco explains that rent prices vary widely depending on the area and purpose of the rental.

- Residential Rentals:

- A single room starts at $150 per month.

- Apartments range from $300 to over $500 per month, depending on the neighborhood.

- Commercial Rentals:

- In the historic center, commercial spaces cost $6–$8 per square meter. A small space for a café or shop could easily cost $1,000–$1,200 per month, with larger spaces exceeding $2,000.

Neighborhood Highlights

Premium areas for living include Ordóñez Lasso Avenue, Puertas del Sol, El Ejido, and Avenida De Las Américas, where rents tend to be higher. Upscale neighborhoods like San Joaquín, Challuabamba, and Misicata offer large homes or luxury properties, with rents often surpassing $2,500 monthly.

For more affordable options, you can explore neighborhoods like Las Orquídeas, Los Trigales, Quinta Chica, Huizhil, or rural areas, where rents start at just $120 for smaller spaces.

Why Is Cuenca Popular?

Pacheco attributes the high cost of living to several factors:

- High-quality healthcare and education.

- Reliable public services.

- A reputation for safety.

- Migration trends.

Foreign Influence on Rent Prices

Real estate advisor Lorena Chalco notes that the influx of expats—mainly from the U.S., Canada, and Europe—has driven up rental prices in the past 15 years. Expats tend to cluster in desirable areas, raising demand and, consequently, prices.

Renting Safely in Cuenca

Lawyer Fernando Capelo reminds renters to check that prices align with the Ley de Inquilinato (Tenancy Law). By law, rent should not exceed 10% of the property’s municipal valuation, divided by 12 months.

If you suspect you're being overcharged, you can file a complaint with Ecuador’s Ombudsman’s Office or a tenancy judge. To avoid disputes, always have a clear, written rental agreement.

Final Thoughts

Cuenca remains a sought-after destination for its lifestyle and amenities, despite its higher rental costs. By understanding the local market and exploring various neighborhoods, you can find a rental option that suits your needs and budget.

Ecuador’s residential real estate market saw modest growth in 2024, with a 2.43% increase in projects, rising from 989 in 2023 to 1,013, according to MarketWatch. Here's a breakdown of the market trends:

Top Cities for Real Estate Projects

The largest concentration of residential projects is in cities with high population densities:

- Quito: 605 projects

- Guayaquil: 106 projects

- Cuenca: 82 projects

- Ambato and Ibarra also rank high in activity.

Homes and Apartments Availability

While Guayaquil has fewer projects than Quito, it leads in the total number of units, with 10,865 homes and apartments (42% of the national supply). Other cities follow:

- Quito: 36%

- Manta: 5%

- Machala: 4%

- Cuenca: 4%

This indicates larger-scale projects in Guayaquil compared to Quito.

Demand and Absorption Rates

Ambato and Ibarra showed the best absorption rates in 2024, meaning homes sold faster relative to availability:

- Ambato: 29% monthly absorption rate

- Ibarra: 9%

- Quito: 13%

- Cuenca: 3%

In contrast, Guayaquil and Machala had negative absorption rates, with properties in Guayaquil averaging 40 months on the market before selling.

Key Influences on the Market

- Pricing: Quito’s average price per square meter is $1,262, while Guayaquil's is higher at $1,360.

- Economic Challenges: Limited access to credit due to a slowing economy has impacted sales. The IMF predicts a 0.4% GDP contraction for Ecuador in 2024.

Despite these challenges, cities like Ambato and Ibarra are emerging as dynamic players in the country’s real estate sector.

Source: Primicias.

Cuenca ranks as the city with the highest rent prices in Ecuador, according to the National Institute of Statistics and Census (INEC). The average monthly rent is $246.88, higher than other major cities like Guayaquil ($206.31), Manta ($209.18), Quito ($195.60), Loja ($193.11), Esmeraldas ($192.89), Ambato ($187.35), Machala ($185.61), and Santo Domingo ($171.18).

In addition, housing costs significantly impact the price of the Basic Family Basket (CFB), which is the highest in the country at $832 per month. Housing accounts for 29.67% of the CFB, with other costs like food (31.64%) and miscellaneous items (31.98%) contributing as well.

Rent Options in Cuenca

Sofía Pacheco, an accountant and real estate agent, notes that rental prices in Cuenca vary greatly depending on the location and the purpose of the rental.

- For housing: Prices range from $150 for a room to over $500 for an apartment, with the sector playing a significant role in the price.

- For commercial spaces: In the Historic Center, rents range from $6 to $8 per square meter. A small commercial space can cost between $1,000 and $1,200 per month, while larger spaces may exceed $2,000.

Key Areas:

- High rent zones: Areas like Ordóñez Lasso Avenue, Puertas del Sol, El Ejido, and the De Las Américas Avenue have the highest prices.

- Larger properties: San Joaquín, Challuabamba, and Misicata feature spacious homes that can exceed $2,500 per month.

- Affordable options: Places like Las Orquídeas, Los Trigales, Quinta Chica, Huizhil, and rural areas offer rents starting at $120 for smaller rooms or homes.

Pacheco believes Cuenca is an expensive city to live in, primarily due to the cost of living, the availability of basic services, healthcare quality, education, migration trends, and safety.

Foreign Influence on Rent Prices in Cuenca

Lorena Chalco, a real estate advisor at InmuAustro, mentions that in the last 15 years, the arrival of foreigners, particularly from the U.S., Europe, and Canada, has significantly impacted rent prices in Cuenca.

These foreign nationals have concentrated in specific areas, causing rent prices to rise in those neighborhoods.

Source: El Mercurio.

Buying and renting a home in Ecuador both have their pros and cons.

Buying con: it's difficult to sell your home fast

Except when you give a considerable discount, it will be pretty difficult to sell your home. There are at least three reasons for this: 1) there is a large supply of homes in Ecuador, 2) there is not much money available among Ecuadorians to buy homes, and 3) the market is not transparant.

There are stories of expats who had to wait for year until they were able to sell their home for a fair price.

To mitigate the risk of not being able to sell your home fast, you may consider buying an apartment in a popular beach cities like Manta and Salinas. These markets are much more liquid.

Buying con: you may encounter the wrong neighbours

The problem in this case is that Ecuador is a so-called 'live and let live' society. If you get noisy neigbors (a loud family of maybe even a nightclub), there won't be much that you can do about the nuisance they cause. If you rent a property, you can relatively easy decide to relocate to another place. When you have bought a property, this will be more complicated.

Buying con: low direct en indirect returns

The direct returns are the rental income if you rent out (a part of) you property. These returns are low in Ecuador. A $100,000 house can usually be rented out for $400 per month or $4,800 per year. That's a direct return of 4.8%. In North America and Europe, investors usually want to see a direct return of at least 10% per year. The indirect returns consist of the increase in value of a property. There are regional differences, but in the last couple of years, the indirect returns in most markets was negative or slightly positive.

Renting pro: renting a home is relatively cheap compared to buying home

A home with a value of $100,000 will typically cost $400 per month to rent. In many other countries, you will probably have to pay at least $800 per month to rent a $100,000 home.

Buying pro: you are free to do what you want

This is a very obvious pro: if you own your home, you don't have to ask a landlord for permission to make modifications to your home. This is the main reason for buying a home in Ecuador as an expat.

Renting con: you are not free to do what you want

As a renter, you will need to ask your landlord to make modifications to your home. Whether you get this permission from your landlord depends on the landlord and your proposal. There are expats who have made succesful proposals and have even succeeded in convincing their landlords to share the costs.

Buying con: Ecuador's capital outflow tax

If you bring more than $1,410 outside Ecuador, you will need to pay the Ecuadorian capital outflow tax. This tax - an almost unique tax in the world - is sometimes also called the money exit tax. The current tax rate is 5% (2025).

Apartments in Salinas are being sold with discounts of up to 40%. This is due to several factors, including constant sewage problems and chaos during holidays that make property owners want to leave Salinas. Additionally, Manta is becoming a more popular tourist destination than Salinas. 'For sale' signs are increasingly visible along the boardwalk de Salinas, as property owners are tired of dealing with unresolved issues. The lack of a rainwater evacuation system causes problems year after year, affecting the three cantons of the province of Santa Elena. Insufficient controls during holidays in the past two years have led to crowds and excesses, driving away tourism and investors.

Four years ago, having an apartment in Salinas was a luxury and almost unattainable dream, but now medium-sized, almost new, two-bedroom apartments sell for USD 60,000, while older ones go for between USD 40,000 and USD 50,000. However, most sales do not materialize due to the inability of people to pay. According to the National Federation of Real Estate Brokers of Ecuador, owners are offering up to a 40% discount on their investments, especially since the pandemic, as people look for remote spaces with fewer inhabitants. Insecurity, mainly robberies and assaults, is another factor affecting the sale of apartments.

According to Edison Salinas, the owner of a real estate company with more than 12 years of experience in Salinas, increasing supply of apartments is due to underutilization by owners. Salinas believes that it's a good time for buyers to invest as the market is down, with apartments facing the sea on the Malecón de Salinas costing around USD 1,500 per square meter. However, sales are currently on hold, and most properties are vacational.

Manta is emerging as a more attractive tourist destination due to its tranquility, comfort, and security, whereas Salinas' image has deteriorated due to insecurity and high costs. In July 2022, Manta was visited by the first commercial mission of members of the National Association of Realtors from Florida to review real estate tourism projects. A real estate congress is also planned in Manta for 2024. There has been a decline in the construction of real estate projects in Salinas, with an increasing number of apartments for sale. Edison Salinas noted that Manta is a seaport and a big city with big problems, while Salinas is a small canton that could expand its offer with alternative attractions.