SÃO PAULO'S BIRTHDAY: HOW MUCH DOES IT COST TO LIVE IN THE CAPITAL?

Average salary is not enough to cover the expenses of a family in the city.

The City of São Paulo is the 33rd best in the world, according to the report “The World's Best Cities” of 2023, prepared annually by Resonance Consultancy. The ranking highlights places of interest for locals and especially for travelers, such as the quality of restaurants, culture and luxury places to stay, such as the new Rosewood hotel, where a night does not cost less than R$ 3 thousand. 

Despite this, the city is not so welcoming to its residents. Full of luxury options in fashion, gastronomy and hospitality, São Paulo appears among the 20 most unequal large cities in the world, in a survey released in 2017 by Euromonitor International, with data from 2016. See below some data that demonstrates how much the cost of living is high in the city. 

São Paulo has the most expensive rent in Brazil

In December 2022, the average rental price in São Paulo, per square meter, was R$ 42.22, according to a survey by Quinto Andar. In comparison, Rio de Janeiro, which is also one of the most expensive in the country, is R$ 36.20 per m². In the most expensive neighborhoods of São Paulo, such as Pinheiros and Vila Olímpia, the price per square meter is greater than R$60. 

Considering this data, the average rental price for a 60-meter property in São Paulo would be R$2,533, and a property of the same size in an upscale neighborhood would cost at least R$3,600 per month, practically the equivalent of 2 or 3 minimum wages. 

SP has the highest average salary, which is not enough to live in the city

The city of São Paulo has the highest average salary in the country, with an average value of R$ 1,926.78, according to the 63rd edition of the Salary Survey carried out by Catho in 2022. In second and third places are Rio de Janeiro and the Federal District. 

state	Average wage
São Paulo	R$ 1.926,78
Rio de Janeiro	R$ 1.756,71
Federal District	R$ 1.731,48

Source: Catho 

Despite having a slightly higher average salary, the income of workers in São Paulo is not enough to live in the city, compared to the costs, which are also higher. The price of the basic basket in the city is the most expensive in the country. 

In December 2022, it was R$791.29, followed by Florianópolis (R$769.19) and Porto Alegre (R$765.63), according to Dieese's monthly survey. With that, the basic food basket alone commits about 60% of a minimum wage.  

Also according to Dieese, in December 2022, the minimum wage needed to maintain a family of four should be equivalent to R$ 6,647.63, more than 5 minimum wages, and much higher than the average wage in the city published by Catho. 

Already considering IBGE data, in 2020 the average salary of formal workers in the city of São Paulo was 4.1 minimum wages, still below the recommended by Dieese.