Cost Of Living in Armenia 2024

Average monthly spending for singles, couples, students, and families in Armenia

Whether you're living in Armenia or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.

Singles

The average monthly expense for a single person living in Armenia is 980,000 AMD. Expenses can range from 330,000 AMD at the minimum level to 6.6M AMD at the highest end.

Couples

The average monthly spending of couples in Armenia is 1.6M AMD. Expenditure can range from 550,000 AMD to 8.8M AMD per month.

Families

The average cost of living for families in Armenia is 2.2M AMD per month. Families spend anywhere from 770,000 AMD to 12M AMD.

Students

The average monthly expenditure for students in Armenia is 680,000 AMD. Students spend from 270,000 AMD to 1.2M AMD per month.

Expenditure to Income Ratio in Armenia

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.

Expense to income distribution levels

Interpretation and Analysis

The average spending-to-salary ratio in Armenia is 83% This means that on average, people spend around 83% of their income for living. According to the distribution table, 19% of the population spend approximately 60% to 70% of their income every month.

Individual
75%
Spending-Income-Ratio

---

67%

83%

Couple
79%
Spending-Income-Ratio

---

70%

87%

Family
87%
Spending-Income-Ratio

---

78%

97%

How do people spend their money in Armenia?

We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.

People living in Armenia typically spend from 17% to 36% of their total monthly expenditure on housing with 28% being the average. The average spend on housing is 430,000 AMD with expenditure ranging from 33,000 AMD to 4.3M AMD. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.

Utility expenditure like electricity, water, and gas in Armenia ranges from 3% to 10% of total expenses with 6% being the average. The average monthly cost of utilities is 71,000 AMD with 5,500 AMD and 710,000 AMD being the upper and lower limits.

Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 11,000 AMD to 1.4M AMD on commuting with 140,000 AMD being the norm for most people in one month. This means that money spent on transport constitutes about 9% of total spending on average but can go as low as 4% or as high as 13%.

The average outlay on groceries in a month in Armenia is 360,000 AMD. The cost of groceries can range between 27,000 AMD to 3.6M AMD. People spend on average about 26% on food and groceries with upper and lower bounds of 18% and 32% respectively.

People in Armenia allocate 3% to 11% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 8%. The range of medical expenses range from 7,700 AMD to 1,000,000 AMD with 100,000 AMD being the norm.

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 4,400 AMD to 570,000 AMD with 57,000 AMD being the average. Speaking of percentages, that equates to 3% to 10% of total expenses with an average of 6% for most residents.

Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 6% of the monthly expenditure with 4% and 12% being the lower and upper bounds respectively. The average reported education cost is 85,000 AMD per month with 6,600 AMD being the minimum spent amount and 850,000 AMD being the maximum.

How much money can you save in Armenia every month?

We asked thousands of people what percentage of their income can they save in a month. Below are the answers.

What percentage of people in Armenia manage to save money from their income every month?

Almost 66% of the surveyed people in Armenia said that they can save some money at the end of each month while 34% said that aren't saving anything.

Percentage of people saving money by population group in Armenia

Saving to Income Ratio

Average Monthly Saved Amount

For most people, 13% to 33% of their monthly income is what they can allocate to their savings, with 22% being the average. The amount of money that people can save is approximately 530,000 AMD on average with savings ranging from 41,000 AMD to 5.3M AMD.

68% of surveyed singles reported some of their income going to savings while 63% of couples said the same. 58% of families confirmed their ability to save money.

How much money do people actually save in Armenia?

Singles

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for singles

Interpretation and Analysis

Singles who can afford to save reported that they allocate from 16% to 35% of their monthly income to savings, with 26% being the average for most singles. The average amount of money that singles are able to save is 370,000 AMD with 120,000 AMD and 2.4M AMD being the minimum and maximum respectively.

Couples

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for couples

Interpretation and Analysis

Couples who confirmed their ability to save reported saving equivalent to 14% to 34% of their monthly income, with 24% being the average for most couples. The average amount of money that couples can save is 610,000 AMD with 200,000 AMD and 3.2M AMD being the minimum and maximum respectively.

Families

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for families

Interpretation and Analysis

Families in Armenia can save anywhere between 12% to 30% of their monthly income, with 20% being the average for most families. The average amount of money that families can put aside is 810,000 AMD with 280,000 AMD and 4.5M AMD being the minimum and maximum respectively.

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Armenia

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in Armenia?

Around 69% of surveyed residents think that living in Armenia is affordable with proper budgeting while 31% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Armenia

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options60%

Few low-cost options40%

Based on the survey, 60% of the people living in Armenia have no problem finding low-cost alternatives to support a frugal lifestyle while 40% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents of Armenia whether they have an emergency fund and the answers were as follows.

Yes68%

No32%

Based on the survey, 32% of the people living in Armenia said that they don't have an emergency fund while 68% said that they do.

Financial Literacy in Armenia

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy64%

We asked residents of Armenia whether they acquired any adequate personal financial training in their lives. Approximately 36% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 64% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether residents of Armenia have problems or difficulties in managing their expenditures and savings so asked the people one simple question: do you struggle with your personal finances? 29% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 71% said that they have everything under control.

Struggles with finance29%

Easily manages finances71%

Financial goals of people in Armenia

In an attempt to understand the economic situation in Armenia, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 6% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 30% said their number one priority is to pay off high-interest debt or loans and improve credit. 7% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 9% reported that their priority is saving for the tuition fees and education costs of their children while 16% choose to buy a home or pay off existing mortgage before other things. 9% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 12% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 8% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Saving Challenges in Armenia

Reasons that make it difficult for people to save money

We wanted to understand what is stopping people from maximizing their savings in Armenia. Listed below are the answers given by the survey participants.

Around 7% of the people said that their salary is too low to accommodate a portion for savings while 10% said that the high cost of living leaves little room for savings. 19% of the residents said that they are burdened with debt and find it challenging to save money. 10% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 9% blamed impulsive spending as the reason for saving inability. Around 6% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 7% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 16% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 10% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 4% said that social pressure and keeping up with peers or societal expectations makes them overspend. Lastly, 3% blamed market instability and price fluctuations.

Typical saving choices for people in Armenia

Where do people choose to put their savings?

Retirement, pension plans, and life after work in Armenia

What does the retirement lifestyle look like in Armenia and how much retirement savings are required?

Retirement age

The retirement age for most employees in Armenia is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.

Retirement planning and savings

There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.

Retirement Income Distribution

We asked residents of Armenia about their retirement income sources and below are the results.

Retirement Monthly Expenses in Armenia

Debt, loans, and mortgages in Armenia

Percentage of people who are in debt

According to the survey, 25% of the people in Armenia have some kind of debt, loan, mortgage, or credit card payments while 75% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Armenia

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 28% of the people's monthly income in Armenia goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 2% of the debtors in Armenia pay 60%+ of their income as debt settlement while 10% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 10% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 12% dedicated 30% to 40% of income for same. Things are looking brighter for 16% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Armenia

14% of debtors in Armenia confirm that real estate mortgages constitutes the main part of their outstanding debt while 24% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 24% of people and personal loans rose at 35%. Lastly, student loans are the main source of debt for 3% of debtors in Armenia.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Armenia

Besides measuring the loan-to-income ratio, we asked residents of Armenia how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Armenia

Rent Cost in Armenia

Monthly Rent Prices

Studio apartment

130,000 AMD

190,000 AMD

500,000 AMD

MINIMUM

AVERAGE

MAXIMUM

$310

$470

$1,200

1-bedroom apartment

190,000 AMD

300,000 AMD

750,000 AMD

MINIMUM

AVERAGE

MAXIMUM

$470

$750

$1,900

2-bedroom apartment

250,000 AMD

380,000 AMD

1,000,000 AMD

MINIMUM

AVERAGE

MAXIMUM

$620

$930

$2,500

3-bedroom apartment

300,000 AMD

500,000 AMD

1.4M AMD

MINIMUM

AVERAGE

MAXIMUM

$750

$1,200

$3,400

Furnished apartment

600,000 AMD

1.5M AMD

3M AMD

MINIMUM

AVERAGE

MAXIMUM

$1,500

$3,700

$7,500

Townhouse

500,000 AMD

750,000 AMD

2.1M AMD

MINIMUM

AVERAGE

MAXIMUM

$1,200

$1,900

$5,300

House

600,000 AMD

1.5M AMD

3M AMD

MINIMUM

AVERAGE

MAXIMUM

$1,500

$3,700

$7,500

Villa

750,000 AMD

1.9M AMD

3M AMD

MINIMUM

AVERAGE

MAXIMUM

$1,900

$4,700

$7,500

The monthly rental cost of a studio apartment in Armenia ranges between 130,000 AMD and 500,000 AMD, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 190,000 AMD to 750,000 AMD. Two-bedroom rentals rate ranges between 250,000 AMD and 1,000,000 AMD per month. The monthly rental for a three-bedroom apartment ranges from 300,000 AMD to 1.4M AMD. The average rent of a townhouse in Armenia is around 750,000 AMD while house rental costs can be as high as 1.5M AMD per month. Finally, if you want to rent a villa, expect to pay anywhere from 750,000 AMD to 3M AMD per month.

Apartment and house prices in Armenia

Cost of buying a property

Studio apartment

25M AMD

38M AMD

75M AMD

MINIMUM

AVERAGE

MAXIMUM

$62,000

$93,000

$190,000

1-bedroom apartment

30M AMD

50M AMD

190M AMD

MINIMUM

AVERAGE

MAXIMUM

$75,000

$120,000

$470,000

2-bedroom apartment

50M AMD

150M AMD

300M AMD

MINIMUM

AVERAGE

MAXIMUM

$120,000

$370,000

$750,000

3-bedroom apartment

170M AMD

250M AMD

750M AMD

MINIMUM

AVERAGE

MAXIMUM

$410,000

$620,000

$1.9M

Townhouse

210M AMD

500M AMD

1,900M AMD

MINIMUM

AVERAGE

MAXIMUM

$530,000

$1.2M

$4.7M

House

250M AMD

1,500M AMD

2,100M AMD

MINIMUM

AVERAGE

MAXIMUM

$620,000

$3.7M

$5.3M

Villa

300M AMD

1,700M AMD

2,500M AMD

MINIMUM

AVERAGE

MAXIMUM

$750,000

$4.1M

$6.2M

The average price of a studio apartment in Armenia can range from 25M AMD to 75M AMD depending on location. One bedroom cost can be anywhere from 30M AMD to 190M AMD. A villa can cost you 1,700M AMD on average with prices ranging from 300M AMD to 2,500M AMD.

House / apartment prices to income ratio

Property prices in Armenia can be x125 to x215 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x125 multiples of the average monthly salary in Armenia.

Rent to income ratio

The average rent-to-income ratio in Armenia is around 33%. This means that people pay 33% of their income for rent. Those figures can range from 23% to 43% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

SingleSpending habits, consumption analysis, and expenditure patterns for a single person living in Armenia

CoupleAverage monthly living expenditure breaks and spending patterns for couples in Armenia

FamilyAverage monthly expenses and break out of spending for families living in Armenia

StudentCost of living and expenses break down for students living in Armenia