Cost Of Living in Tanzania 2024
Average monthly spending for singles, couples, students, and families in Tanzania
Whether you're living in Tanzania 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.
Average Monthly Expenditure510,000 TZS
per month$20039,000 TZS $15
$2,000 5.1M TZS
Single350,000 TZS
per month$140120,000 TZS $46
$920 2.3M TZS
Couple590,000 TZS
per month$230200,000 TZS $76
$1,200 3.1M TZS
Family780,000 TZS
per month$310270,000 TZS $110
$1,700 4.3M TZS
Student230,000 TZS
per month$8890,000 TZS $35
$160 410,000 TZS
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.
Singles
The average monthly expense for a single person living in Tanzania is 350,000 TZS. Expenses can range from 120,000 TZS at the minimum level to 2.3M TZS at the highest end.
Couples
The average monthly spending of couples in Tanzania is 590,000 TZS. Expenditure can range from 200,000 TZS to 3.1M TZS per month.
Families
The average cost of living for families in Tanzania is 780,000 TZS per month. Families spend anywhere from 270,000 TZS to 4.3M TZS.
Students
The average monthly expenditure for students in Tanzania is 230,000 TZS. Students spend from 90,000 TZS to 410,000 TZS per month.
Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.
Prices and cost of goods and services in Tanzania
Dining, food, and beverages costs
Large bottle of water
Fast food combo meal | 500 TZS | 1,000 TZS | 1,700 TZS |
Restaurant meal for one | 1,700 TZS | 2,500 TZS | 5,000 TZS |
Fine dining meal for one | 3,300 TZS | 5,000 TZS | 20,000 TZS |
Soda or Soft Drink
Cappuccino or latte | 420 TZS | 670 TZS | 1,000 TZS |
Grocery and market costs
Milk large bottle
Loaf of bread
12 eggs
Fresh whole chicken | 570 TZS | 740 TZS | 1,000 TZS |
Beef 1 kg or 1 lb | 670 TZS | 1,000 TZS | 2,000 TZS |
Rice 1 kg or 1 lb
Tomato 1 kg or 1 lb
Apples 1 kg or 1 lb Commute, travel, and transportation costs
20 minutes taxi ride | 420 TZS | 500 TZS | 1,000 TZS |
Average car full tank | 2,500 TZS | 3,300 TZS | 6,700 TZS |
Average car 1-day rental | 2,500 TZS | 3,300 TZS | 5,000 TZS |
Average car price | 1.3M TZS | 2.5M TZS | 3.3M TZS |
Bus ticket one way
Car Service | 3,300 TZS | 5,000 TZS | 10,000 TZS |
Utility cost (monthly)
Utility Bill - Individual | 7,000 TZS | 21,000 TZS | 140,000 TZS |
Utility Bill - Couple | 9,800 TZS | 29,000 TZS | 160,000 TZS |
Utility Bill - Family | 8,200 TZS | 23,000 TZS | 130,000 TZS |
Internet and cable | 2,500 TZS | 5,000 TZS | 6,700 TZS |
Mobile phone charges | 2,000 TZS | 3,300 TZS | 10,000 TZS |
Leisure and activities costs
Movie ticket | 1,300 TZS | 1,700 TZS | 2,500 TZS |
One month gym membership | 4,000 TZS | 5,000 TZS | 10,000 TZS |
Cloths and accessories costs
Pair of jeans or pants | 2,900 TZS | 4,200 TZS | 6,300 TZS |
Woman dress | 2,800 TZS | 3,800 TZS | 13,000 TZS |
Woman shoes | 2,600 TZS | 3,600 TZS | 8,300 TZS |
Men's shoes | 2,300 TZS | 2,800 TZS | 5,600 TZS |
Men suit | 2,500 TZS | 3,100 TZS | 17,000 TZS |
Regular t-shirt | 1,300 TZS | 1,700 TZS | 5,000 TZS |
Housing costs / monthly rent
Studio apartment | 42,000 TZS | 63,000 TZS | 170,000 TZS |
1-bedroom apartment | 63,000 TZS | 100,000 TZS | 250,000 TZS |
2-bedroom apartment | 83,000 TZS | 130,000 TZS | 330,000 TZS |
Housing costs / Buying
Studio apartment
1-bedroom apartment
2-bedroom apartment Furniture Costs
King Size Bed | 50,000 TZS | 63,000 TZS | 83,000 TZS |
Double Bed | 33,000 TZS | 50,000 TZS | 63,000 TZS |
Single Bed | 29,000 TZS | 38,000 TZS | 50,000 TZS |
Living Room | 56,000 TZS | 71,000 TZS | 250,000 TZS |
Dining Table | 25,000 TZS | 33,000 TZS | 63,000 TZS |
Sofa or Couch | 33,000 TZS | 45,000 TZS | 100,000 TZS |
Electronics and House Appliance Costs
TV Set | 33,000 TZS | 50,000 TZS | 100,000 TZS |
Fridge or Freezer | 29,000 TZS | 45,000 TZS | 63,000 TZS |
Washing Machine | 38,000 TZS | 56,000 TZS | 100,000 TZS |
Stove or Cooker | 36,000 TZS | 45,000 TZS | 63,000 TZS |
Mobile Phone | 42,000 TZS | 50,000 TZS | 71,000 TZS |
Laptop or Computer | 45,000 TZS | 56,000 TZS | 100,000 TZS |
Expenditure to Income Ratio in Tanzania
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.
Spending to Income Ratio
88%
82% to 97%
( expenditure / income ) x 100
Expense to income distribution levels
| Spending To Income Ratio | % People |
|---|
| < 50% | 3% |
| 50% - 60% | 8% |
| 60% - 70% | 14% |
| 70% - 80% | 24% |
| 80% - 90% | 22% |
| 90% - 100% | 12% |
| 100% - 110% | 6% |
| 110% - 120% | 4% |
| 120% - 130% | 3% |
| 130% - 140% | 3% |
| > 140% | 2% |
Interpretation and Analysis
The average spending-to-salary ratio in Tanzania is 88%
This means that on average, people spend around 88% of their income for living.
According to the distribution table, 14% of the population spend approximately 60% to 70% of their income every month.
How can spending be more than income?
A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.
Individual
79%
Spending-Income-Ratio
74%
87%
Couple
84%
Spending-Income-Ratio
78%
92%
Family
92%
Spending-Income-Ratio
86%
100%
How do people spend their money in Tanzania?
We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.
The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.
Housing Expenditure22%
22% of total expenses on average (11% to 30%)
| LOW | $4.6 12,000 TZS |
| AVERAGE | $60 150,000 TZS |
| HIGH | $600 1.5M TZS |
| Per Month |
People living in Tanzania typically spend from 11% to 30% of their total monthly expenditure on housing with 22% being the average. The average spend on housing is 150,000 TZS with expenditure ranging from 12,000 TZS to 1.5M TZS. 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.
Utilities, Electricity, Water8%
8% of total expenses on average (5% to 12%)
| LOW | $0.76 2,000 TZS |
| AVERAGE | $9.9 25,000 TZS |
| HIGH | $99 250,000 TZS |
| Per Month |
Utility expenditure like electricity, water, and gas in Tanzania ranges from 5% to 12% of total expenses with 8% being the average. The average monthly cost of utilities is 25,000 TZS with 2,000 TZS and 250,000 TZS being the upper and lower limits.
Transport, Fuel, Commute6%
6% of total expenses on average (3% to 10%)
| LOW | $1.5 3,900 TZS |
| AVERAGE | $20 51,000 TZS |
| HIGH | $200 510,000 TZS |
| Per Month |
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 3,900 TZS to 510,000 TZS on commuting with 51,000 TZS being the norm for most people in one month. This means that money spent on transport constitutes about 6% of total spending on average but can go as low as 3% or as high as 10%.
Food and Groceries Cost29%
29% of total expenses on average (21% to 35%)
| LOW | $3.8 9,800 TZS |
| AVERAGE | $50 130,000 TZS |
| HIGH | $500 1.3M TZS |
| Per Month |
The average outlay on groceries in a month in Tanzania is 130,000 TZS. The cost of groceries can range between 9,800 TZS to 1.3M TZS. People spend on average about 29% on food and groceries with upper and lower bounds of 21% and 35% respectively.
Healthcare and Medical Services11%
11% of total expenses on average (6% to 14%)
| LOW | $1.1 2,700 TZS |
| AVERAGE | $14 35,000 TZS |
| HIGH | $140 350,000 TZS |
| Per Month |
People in Tanzania allocate 6% to 14% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 11%. The range of medical expenses range from 2,700 TZS to 350,000 TZS with 35,000 TZS being the norm.
Leisure and Shopping4%
4% of total expenses on average (2% to 8%)
| LOW | $0.61 1,600 TZS |
| AVERAGE | $8 20,000 TZS |
| HIGH | $80 200,000 TZS |
| Per Month |
This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 1,600 TZS to 200,000 TZS with 20,000 TZS being the average. Speaking of percentages, that equates to 2% to 8% of total expenses with an average of 4% for most residents.
Education and Schooling5%
5% of total expenses on average (3% to 11%)
| LOW | $0.92 2,300 TZS |
| AVERAGE | $12 30,000 TZS |
| HIGH | $120 300,000 TZS |
| Per Month |
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 5% of the monthly expenditure with 3% and 11% being the lower and upper bounds respectively. The average reported education cost is 30,000 TZS per month with 2,300 TZS being the minimum spent amount and 300,000 TZS being the maximum.
Other Expenses15%
15% of total expenses on average (10% to 22%)
| LOW | $2 5,100 TZS |
| AVERAGE | $26 66,000 TZS |
| HIGH | $260 660,000 TZS |
| Per Month |
How much money can you save in Tanzania 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 Tanzania manage to save money from their income every month?
Almost 45% of the surveyed people in Tanzania said that they can save some money at the end of each month while 55% said that aren't saving anything.
Percentage of people saving money by population group in Tanzania
| Group | Savers | Non Savers |
|---|
| Singles | 55% | 45% |
| Couples | 50% | 50% |
| Families | 45% | 55% |
Savings-to-Income Ratio
The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.
Saving to Income Ratio
Average Monthly Saved Amount
11,000 TZS
$4.3 | 140,000 TZS
$56 | 1.4M TZS
$560 |
For most people, 7% to 27% of their monthly income is what they can allocate to their savings, with 13% being the average. The amount of money that people can save is approximately 140,000 TZS on average with savings ranging from 11,000 TZS to 1.4M TZS.
55% of surveyed singles reported some of their income going to savings while 50% of couples said the same. 45% of families confirmed their ability to save money.
How much money do people actually save in Tanzania?
The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.
Singles
Saving to Income Ratio
Average Monthly Saved Amount
33,000 TZS
$13 | 99,000 TZS
$39 | 660,000 TZS
$260 |
Savings to income distribution levels for singles
| Saving To Income Ratio | % Singles |
|---|
| 0% - 10% | 34% |
| 10% - 20% | 26% |
| 20% - 30% | 17% |
| 30% - 40% | 11% |
| 40% - 50% | 9% |
| > 50% | 3% |
Interpretation and Analysis
Singles who can afford to save reported that they allocate from 10% to 29% of their monthly income to savings, with 17% being the average for most singles. The average amount of money that singles are able to save is 99,000 TZS with 33,000 TZS and 660,000 TZS being the minimum and maximum respectively.
Couples
Saving to Income Ratio
Average Monthly Saved Amount
55,000 TZS
$22 | 170,000 TZS
$65 | 880,000 TZS
$350 |
Savings to income distribution levels for couples
| Saving To Income Ratio | % Couples |
|---|
| 0% - 10% | 38% |
| 10% - 20% | 28% |
| 20% - 30% | 20% |
| 30% - 40% | 6% |
| 40% - 50% | 6% |
| > 50% | 2% |
Interpretation and Analysis
Couples who confirmed their ability to save reported saving equivalent to 8% to 28% of their monthly income, with 15% being the average for most couples. The average amount of money that couples can save is 170,000 TZS with 55,000 TZS and 880,000 TZS being the minimum and maximum respectively.
Families
Saving to Income Ratio
Average Monthly Saved Amount
77,000 TZS
$30 | 220,000 TZS
$86 | 1.2M TZS
$470 |
Savings to income distribution levels for families
| Saving To Income Ratio | % Families |
|---|
| 0% - 10% | 41% |
| 10% - 20% | 31% |
| 20% - 30% | 21% |
| 30% - 40% | 3% |
| 40% - 50% | 3% |
| > 50% | 1% |
Interpretation and Analysis
Families in Tanzania can save anywhere between 7% to 26% of their monthly income, with 13% being the average for most families. The average amount of money that families can put aside is 220,000 TZS with 77,000 TZS and 1.2M TZS 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
The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.
Affordable living in Tanzania
Income and cost of living compatibility
We asked residents one simple question and recorded their answers.
Is it affordable or economical to live in Tanzania?
Around 40% of surveyed residents think that living in Tanzania is affordable with proper budgeting while 60% reported that it is just too expensive and not affordable even with frugality and thriftness.
Low-cost alternatives in Tanzania
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 options50%
Few low-cost options50%
Based on the survey, 50% of the people living in Tanzania have no problem finding low-cost alternatives to support a frugal lifestyle while 50% 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 Tanzania whether they have an emergency fund and the answers were as follows.
Yes35%
No65%
Based on the survey, 65% of the people living in Tanzania said that they don't have an emergency fund while 35% said that they do.
Financial Literacy in Tanzania
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 Leteracy35%
We asked residents of Tanzania whether they acquired any adequate personal financial training in their lives. Approximately 65% 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 35% 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 Tanzania have problems or difficulties in managing their expenditures and savings so asked the people one simple question: do you struggle with your personal finances? 69% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 31% said that they have everything under control.
Struggles with finance69%
Easily manages finances31%
Financial goals of people in Tanzania
In an attempt to understand the economic situation in Tanzania, 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.
| Financial Goal | % People |
|---|
| Emergency Fund | 9% |
| Debt Reduction | 46% |
| Retirement Savings | 11% |
| Education Funding | 6% |
| Homeownership | 19% |
| Investing | 6% |
| Travel or Lifestyle | 5% |
| Healthcare Expenses | 15% |
| Financial Independence | 4% |
Around 9% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 46% said their number one priority is to pay off high-interest debt or loans and improve credit. 11% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 6% reported that their priority is saving for the tuition fees and education costs of their children while 19% choose to buy a home or pay off existing mortgage before other things. 6% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 5% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 15% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.
Saving Challenges in Tanzania
Reasons that make it difficult for people to save money
We wanted to understand what is stopping people from maximizing their savings in Tanzania. Listed below are the answers given by the survey participants.
| Reason | % People |
|---|
| Low Income | 4% |
| High Expenses | 7% |
| Debt and Loans | 12% |
| Lack of Budgeting Skills | 12% |
| Impulsive Spending | 12% |
| Financial Emergencies | 7% |
| Living the moment | 5% |
| Will do it later | 22% |
| Inflation | 14% |
| Social Pressure | 2% |
| Market Instability | 2% |
Around 4% of the people said that their salary is too low to accommodate a portion for savings while 7% said that the high cost of living leaves little room for savings. 12% of the residents said that they are burdened with debt and find it challenging to save money. 12% 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. 12% blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 5% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 22% 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. 14% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 2% said that social pressure and keeping up with peers or societal expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.
Typical saving choices for people in Tanzania
Where do people choose to put their savings?
| Saving Type | % People |
|---|
| Emergency Funds | 13% |
| Gold | 14% |
| Savings Accounts | 16% |
| Retirement Accounts | 9% |
| Cash Savings | 22% |
| Real Estate | 9% |
| Investment | 5% |
| Stocks | 3% |
| Bonds | 4% |
| Mutual Funds | 2% |
| Certificates of Deposit | 2% |
Retirement, pension plans, and life after work in Tanzania
What does the retirement lifestyle look like in Tanzania and how much retirement savings are required?
Retirement age
The retirement age for most employees in Tanzania 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.
The typical saved amount of money you should have at every age as multiples of monthly salary:| Age | Amount |
|---|
| 25 | 5x monthly salary at age 25 |
| 30 | 10x monthly salary at age 30 |
| 35 | 15x monthly salary at age 35 |
| 40 | 25x monthly salary at age 40 |
| 45 | 32x monthly salary at age 45 |
| 50 | 48x monthly salary at age 50 |
| 55 | 56x monthly salary at age 55 |
| 60 | 64x monthly salary at age 60 |
| 65 | 78x monthly salary at age 65 |
The typical average saved amount of money you should have at every age in Tanzania:| Age | Amount |
|---|
| 25 | 1.3M TZS |
| 30 | 2.6M TZS |
| 35 | 4.6M TZS |
| 40 | 6.5M TZS |
| 45 | 9.8M TZS |
| 50 | 14M TZS |
| 55 | 16M TZS |
| 60 | 20M TZS |
| 65 | 24M TZS |
Retirement Income Distribution
We asked residents of Tanzania about their retirement income sources and below are the results.
| Source | % People |
|---|
| Pensions | 11% |
| Savings | 24% |
| Investments | 11% |
| Social Security | 6% |
| Annuities | 6% |
| Part-time Job | 16% |
| Real Estate | 19% |
| Dividends and Interest | 6% |
Retirement Monthly Expenses in Tanzania 87,000 TZS
$34 | 260,000 TZS
$100 | 1.7M TZS
$680 |
Debt, loans, and mortgages in Tanzania
Percentage of people who are in debt
According to the survey, 38% of the people in Tanzania have some kind of debt, loan, mortgage, or credit card payments while 62% reported that they don't have financial obligations to banks.
Debt-to-income ratio in Tanzania
Debt to income ratio
33%
26% to 42%
( monthly debt payment / monthly income ) x 100
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 33% of the people's monthly income in Tanzania goes to debt settlement.
Debt levelsMonthly debt settlement payment as percentage of monthly income
| Debt-to-income ratio | % People |
|---|
| > 60% | 4% |
| 50% - 60% | 20% |
| 40% - 50% | 16% |
| 30% - 40% | 18% |
| 20% - 30% | 9% |
| 10% - 20% | 10% |
| 0% - 10% | 25% |
According to our data, 4% of the debtors in Tanzania pay 60%+ of their income as debt settlement while 20% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 16% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 18% dedicated 30% to 40% of income for same. Things are looking brighter for 9% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.
Distribution by type of debt in Tanzania
| Debt | % People |
|---|
| Real Estate Mortgage | 7% |
| Auto Loan | 12% |
| Student Loan | 4% |
| Credit Card | 31% |
| Personal Loan | 45% |
7% of debtors in Tanzania confirm that real estate mortgages constitutes the main part of their outstanding debt while 31% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 12% of people and personal loans rose at 45%. Lastly, student loans are the main source of debt for 4% of debtors in Tanzania.
About credit score and debt managementManaging debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.
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 Tanzania
Besides measuring the loan-to-income ratio, we asked residents of Tanzania 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.
| Frequency | % People |
|---|
| Never | 49% |
| Once a year | 25% |
| Twice a year | 13% |
| Three times a year | 9% |
| Four times a year | 5% |
Housing costs, accommodation, and housing affordability in Tanzania
Rental costs and house/apartment prices can vary drastically between different areas and locations.
Rent Cost in Tanzania
Monthly Rent Prices
Studio apartment | 42,000 TZS | 63,000 TZS | 170,000 TZS |
1-bedroom apartment | 63,000 TZS | 100,000 TZS | 250,000 TZS |
2-bedroom apartment | 83,000 TZS | 130,000 TZS | 330,000 TZS |
3-bedroom apartment | 100,000 TZS | 170,000 TZS | 450,000 TZS |
Furnished apartment | 200,000 TZS | 500,000 TZS | 1,000,000 TZS |
Townhouse | 170,000 TZS | 250,000 TZS | 710,000 TZS |
House | 200,000 TZS | 500,000 TZS | 1,000,000 TZS |
Villa | 250,000 TZS | 630,000 TZS | 1,000,000 TZS |
The monthly rental cost of a studio apartment in Tanzania ranges between 42,000 TZS and 170,000 TZS, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 63,000 TZS to 250,000 TZS. Two-bedroom rentals rate ranges between 83,000 TZS and 330,000 TZS per month. The monthly rental for a three-bedroom apartment ranges from 100,000 TZS to 450,000 TZS. The average rent of a townhouse in Tanzania is around 250,000 TZS while house rental costs can be as high as 500,000 TZS per month. Finally, if you want to rent a villa, expect to pay anywhere from 250,000 TZS to 1,000,000 TZS per month.
Apartment and house prices in Tanzania
Cost of buying a property
Studio apartment
1-bedroom apartment
2-bedroom apartment
3-bedroom apartment
Townhouse | 71M TZS | 170M TZS | 630M TZS |
House | 83M TZS | 500M TZS | 710M TZS |
| $33,000 | $200,000 | $280,000 |
Villa | 100M TZS | 560M TZS | 830M TZS |
| $39,000 | $220,000 | $330,000 |
The average price of a studio apartment in Tanzania can range from 8.3M TZS to 25M TZS depending on location. One bedroom cost can be anywhere from 10M TZS to 63M TZS. A villa can cost you 560M TZS on average with prices ranging from 100M TZS to 830M TZS.
If you're leasing or purchasing, housing costs in Tanzania will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.
House / apartment prices to income ratio
Property price to income ratio( average property price / average monthly income ) x 100
| 27 | x73 monthly income | 184 |
Property prices in Tanzania can be x73 to x184 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x73 multiples of the average monthly salary in Tanzania.
Rent to income ratio
Rent to income ratio( monthly rental / monthly income ) x 100
The average rent-to-income ratio in Tanzania is around 27%. This means that people pay 27% of their income for rent. Those figures can range from 17% to 37% depending on the salary, location, and type of property.
The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.
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.
Housing Affordability Index
25% 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.
| 780 TZS | 10,000 TZS | 100,000 TZS |
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 Tanzania
Housing28%
28% of total expenses on average (16% to 40%)
| LOW | $17 42,000 TZS |
| AVERAGE | $50 130,000 TZS |
| HIGH | $330 840,000 TZS |
| Per Month |
Utilities, Electricity, Water9%
9% of total expenses on average (5% to 14%)
| LOW | $2.8 7,000 TZS |
| AVERAGE | $8.3 21,000 TZS |
| HIGH | $55 140,000 TZS |
| Per Month |
Transport, Fuel4%
4% of total expenses on average (2% to 10%)
| LOW | $3.7 9,400 TZS |
| AVERAGE | $11 28,000 TZS |
| HIGH | $73 190,000 TZS |
| Per Month |
Food and Groceries20%
20% of total expenses on average (14% to 25%)
| LOW | $7.3 19,000 TZS |
| AVERAGE | $22 56,000 TZS |
| HIGH | $150 370,000 TZS |
| Per Month |
Healthcare13%
13% of total expenses on average (7% to 17%)
| LOW | $4.1 11,000 TZS |
| AVERAGE | $12 32,000 TZS |
| HIGH | $83 210,000 TZS |
| Per Month |
Leisure, Shopping2%
2% of total expenses on average (2% to 5%)
| LOW | $2.3 5,900 TZS |
| AVERAGE | $6.9 18,000 TZS |
| HIGH | $46 120,000 TZS |
| Per Month |
Education1%
1% of total expenses on average (0.00% to 3%)
| LOW | $0.92 2,300 TZS |
| AVERAGE | $2.8 7,000 TZS |
| HIGH | $18 47,000 TZS |
| Per Month |
Other Expenses23%
23% of total expenses on average (15% to 27%)
| LOW | $8.3 21,000 TZS |
| AVERAGE | $25 63,000 TZS |
| HIGH | $170 420,000 TZS |
| Per Month |
CoupleAverage monthly living expenditure breaks and spending patterns for couples in Tanzania
Housing25%
25% of total expenses on average (18% to 35%)
| LOW | $25 64,000 TZS |
| AVERAGE | $76 190,000 TZS |
| HIGH | $400 1M TZS |
| Per Month |
Utilities, Electricity, Water8%
8% of total expenses on average (6% to 12%)
| LOW | $3.8 9,800 TZS |
| AVERAGE | $11 29,000 TZS |
| HIGH | $61 160,000 TZS |
| Per Month |
Transport, Fuel8%
8% of total expenses on average (2% to 13%)
| LOW | $9.2 23,000 TZS |
| AVERAGE | $28 70,000 TZS |
| HIGH | $150 370,000 TZS |
| Per Month |
Food and Groceries18%
18% of total expenses on average (13% to 23%)
| LOW | $11 27,000 TZS |
| AVERAGE | $32 82,000 TZS |
| HIGH | $170 440,000 TZS |
| Per Month |
Healthcare15%
15% of total expenses on average (9% to 19%)
| LOW | $8.4 21,000 TZS |
| AVERAGE | $25 64,000 TZS |
| HIGH | $130 340,000 TZS |
| Per Month |
Leisure, Shopping3%
3% of total expenses on average (1% to 6%)
| LOW | $4.6 12,000 TZS |
| AVERAGE | $14 35,000 TZS |
| HIGH | $73 190,000 TZS |
| Per Month |
Education1%
1% of total expenses on average (0.00% to 3%)
| LOW | $1.5 3,900 TZS |
| AVERAGE | $4.6 12,000 TZS |
| HIGH | $24 62,000 TZS |
| Per Month |
Other Expenses22%
22% of total expenses on average (16% to 28%)
| LOW | $13 33,000 TZS |
| AVERAGE | $39 99,000 TZS |
| HIGH | $210 530,000 TZS |
| Per Month |
FamilyAverage monthly expenses and break out of spending for families living in Tanzania
Housing24%
24% of total expenses on average (19% to 34%)
| LOW | $34 87,000 TZS |
| AVERAGE | $98 250,000 TZS |
| HIGH | $540 1.4M TZS |
| Per Month |
Transport, Fuel4%
4% of total expenses on average (2% to 6%)
| LOW | $8.6 22,000 TZS |
| AVERAGE | $24 62,000 TZS |
| HIGH | $130 340,000 TZS |
| Per Month |
Food and Groceries22%
22% of total expenses on average (15% to 28%)
| LOW | $19 49,000 TZS |
| AVERAGE | $55 140,000 TZS |
| HIGH | $300 770,000 TZS |
| Per Month |
Healthcare12%
12% of total expenses on average (8% to 17%)
| LOW | $8.6 22,000 TZS |
| AVERAGE | $24 62,000 TZS |
| HIGH | $130 340,000 TZS |
| Per Month |
Leisure, Shopping2%
2% of total expenses on average (1% to 6%)
| LOW | $5.4 14,000 TZS |
| AVERAGE | $15 39,000 TZS |
| HIGH | $84 210,000 TZS |
| Per Month |
Education13%
13% of total expenses on average (6% to 21%)
| LOW | $15 38,000 TZS |
| AVERAGE | $43 110,000 TZS |
| HIGH | $240 600,000 TZS |
| Per Month |
Other Expenses17%
17% of total expenses on average (10% to 22%)
| LOW | $13 33,000 TZS |
| AVERAGE | $37 94,000 TZS |
| HIGH | $200 510,000 TZS |
| Per Month |
StudentCost of living and expenses break down for students living in Tanzania
Housing16%
16% of total expenses on average (11% to 22%)
| LOW | $8.5 22,000 TZS |
| AVERAGE | $21 54,000 TZS |
| HIGH | $38 97,000 TZS |
| Per Month |
Utilities, Electricity, Water7%
7% of total expenses on average (5% to 11%)
| LOW | $1.4 3,600 TZS |
| AVERAGE | $3.5 9,000 TZS |
| HIGH | $6.4 16,000 TZS |
| Per Month |
Transport, Fuel3%
3% of total expenses on average (4% to 9%)
| LOW | $2.5 6,300 TZS |
| AVERAGE | $6.2 16,000 TZS |
| HIGH | $11 28,000 TZS |
| Per Month |
Food and Groceries24%
24% of total expenses on average (18% to 28%)
| LOW | $7.1 18,000 TZS |
| AVERAGE | $18 45,000 TZS |
| HIGH | $32 81,000 TZS |
| Per Month |
Healthcare10%
10% of total expenses on average (7% to 13%)
| LOW | $2.1 5,400 TZS |
| AVERAGE | $5.3 14,000 TZS |
| HIGH | $9.5 24,000 TZS |
| Per Month |
Leisure, Shopping2%
2% of total expenses on average (1% to 6%)
| LOW | $1.8 4,500 TZS |
| AVERAGE | $4.4 11,000 TZS |
| HIGH | $7.9 20,000 TZS |
| Per Month |
Education18%
18% of total expenses on average (11% to 23%)
| LOW | $6.7 17,000 TZS |
| AVERAGE | $17 43,000 TZS |
| HIGH | $30 77,000 TZS |
| Per Month |
Other Expenses20%
20% of total expenses on average (14% to 26%)
| LOW | $5.3 14,000 TZS |
| AVERAGE | $13 34,000 TZS |
| HIGH | $24 61,000 TZS |
| Per Month |
