Family Moves to Costa Rica For a Mortgage-Free, Simpler Life. 'We Love Living Here.'

Whether they’re in search of more affordable living, a better quality of life or adventure, more Americans are relocating abroad and redefining what ‘home’ means on their own terms.

By all accounts, Dan O'Bryan and his family had it all: a successful business, a nice home and a full, busy life in Texas. But little did O'Bryan know that a heartfelt conversation with his dying father about slowing down and prioritizing more family time would inspire them to find their slice of utopia 2,000 miles south of the border.

Seven years ago, O'Bryan’s family sold their home and their business to head south to Costa Rica. And since then, they haven’t looked back.

The family settled in Playa del Coco, a bustling, sun-drenched beach town nestled on the Pacific Coast of Costa Rica’s Guanacaste region. The once-sleepy area has seen massive growth in recent years from an influx of American and Canadian expats in search of their own slice of “pura vida,” or the “pure” or “simple” life, as native Ticos call it.

Living The Mortgage-Free Life, Just $3,000 to $4,000 Per Year In Living Expenses

More Americans — retirees and young families alike — are flocking to this Central American paradise chiefly for its affordable cost of living and beautiful weather. From housing to health care and education, life as an expat in Costa Rica is notably more affordable than the States, O'Bryan points out.

“Not having a mortgage and owning a house outright, it's an amazing feeling,” O'Bryan says. “It's costing, even with $300 property taxes and full insurance on our house, maybe $3,000 to $4,000 a year [in living expenses].”

A Simpler Life

O'Bryan adds that his family has owned a few properties since living in Costa Rica and recently paid cash to build their current home. His family lives more economically and with a much smaller consumerism footprint in their adopted home, he notes. Unlike life in the U.S. where Amazon and other delivery services were a few clicks away, O’Bryan points out that Costa Rican living is simpler and more intentional. “Come with some patience; life moves a little slower here. Be willing to accept there are some cultural differences, and come with an open mind.”

And that’s exactly the life O’Bryan says he envisioned. “We love living here; my kids love it.”

The O’Bryans aren’t alone in realizing the American dream on distant shores.

The American Association of Resident Overseas (AARO) estimates that 5.4 million Americans live abroad. The U.S. The Department of State pegs the number much higher at roughly 6.8 million U.S. citizens living overseas.

Americans are increasingly adopting a more open-minded approach to life abroad. In March, about one-third (34%) of Americans said they would prefer to move to and settle in another country if they could — a three-fold increase from 50 years ago, according to a Monmouth University poll.

Cost of Living a Notable Driver of U.S. Emigration

Affordability (or a lack of it) is a key force driving some Americans overseas. Median existing-home prices in the U.S. in July hit $422,600, up 4.2% from a year ago.

As a result, some people are being priced out of the U.S. because of the combination of higher property prices and persistently high mortgage rates, as well as inflation driving costs up across the board and a cooling job market. The Monmouth poll also hints at the country’s political rancor and division as being another factor leading to sharper interest in U.S. emigration.

With the meteoric rise of remote work in a post-pandemic world and more countries offering digital nomad visas to attract new residents, Americans are embracing the opportunity to see what life in other countries has to offer.

While living in Costa Rica has been a dream come true for his family, O'Bryan doesn’t recommend pulling up roots and relocating without first understanding the nuances.

“If you come here to live like a tourist, then it's going to be expensive,” O'Bryan says. “One of the bigger shocks that I hear with most people when they come down here is in the United States, everybody mortgages just about everything. In Costa Rica, it's not exactly like that.”

How Does Someone Buy Property in Costa Rica?

Getting a mortgage in Costa Rica is possible, but interest rates are a lot higher than in the U.S., so the financing math doesn’t work in expats’ favor, says Michael Simon, a real estate broker and owner of Tres Amigos Realty Group in Playa Hermosa.

An expat himself who came to Costa Rica 21 years ago, Simon notes that most Americans who come to Costa Rica either have the equity from their U.S. home sale to buy a home outright with ultra-low property taxes, or can rent at much lower monthly prices.

“You just get a lot more real estate bang for your buck here than you would in somewhere like Florida, and buying real estate is very easy,” Simon says.