If you want to start a lively debate in Colombia, forget politics. Forget football. Forget even the eternal question of whether Bogotá or Medellín is better (we all know the real answer is: depends who you ask).

Just ask someone about estratos.

Suddenly, people who were quiet three minutes ago will come alive like they’re hosting a TED Talk.

Estratos is one of the most misunderstood, misinterpreted, and mysterious systems for foreigners arriving in Colombia.
Some think it’s wealth ranking.
Others think it’s a caste system.
And some expats think it’s the Colombian version of “Who Wants to Be a Millionaire.”

Spoiler: it’s none of those things.

But it is important — because it affects your bills, your rent, your neighborhood options, and how your daily life looks and feels.

So let’s break it down simply, clearly, and honestly — with real examples — so you finally understand what estratos really mean in Colombia.

Estratos are residential socio-economic classifications created by the Colombian government to determine how much households should pay for:

This system exists for one purpose:

Estratos refer specifically to the building, not the person.

You can be a millionaire living in a strata 3 apartment because you like the vibe.
You can be a student living in strata 5 because you got a good deal.
You can be a retiree living anywhere you want because no one checks how much you earn.

Estratos = building classification.
Not socio-economic judgment.

Let’s go through each one the way locals actually talk about them.

Bills are heavily discounted.

These areas are not where expats generally live.

More stable than estrato 1, still very affordable.

Bills are subsidized, rent is low, and infrastructure varies widely.

Some parts can be safe, others less so — depends heavily on the city.

This is the “sweet spot” for many Colombian families.

Characteristics:

Many expats who want authenticity and a good cost of living consider strata 3 neighborhoods.

The middle ground between affordability and comfort.

Typically includes:

Utilities cost more here because subsidies drop.

Modern apartments, closed communities, better finishes, more security, and prime locations.

Bills are higher, because strata 5 & 6 help subsidize lower levels.

Estrato 5 attracts professionals, expats, digital nomads, and families seeking comfort without going into luxury-level spending.

This is where you’ll find:

Utilities and taxes are the highest here.

In Bogotá and Medellín, many foreign residents start in a strata 6 area simply because it’s the simplest option with the best comfort and bilingual accessibility.

Here’s the core reason estratos exist:

Examples:

Electricity Bill

Water Bill

Internet
Costs are fairly stable across estratos, but installation fees and taxes differ slightly.

Reality: No.
Estratos classify buildings — not the net worth of the people living inside them.

Reality: Often true, but not guaranteed.
Colombia has safe and unsafe pockets everywhere.

Reality: Not at all.
Many foreigners happily live in estrato 3 or 4 for affordability and community.

Reality: Areas can be reclassified as infrastructure improves.

Reality: A gorgeous strata 4 apartment can beat a mediocre strata 5 building any day.

To make this practical, here are common neighborhoods and their typical estratos:

Rent changes dramatically by estrato.

So when people say “Colombia is cheap,” the truth is:
It depends entirely on the estrato.

There’s no right answer, but here’s how most foreigners choose:

Wants authenticity, community, local prices.

Feels local but comfortable.

Popular for families, digital nomads, remote workers.

Best for relocating with kids or without Spanish.

Understanding estratos helps you:

It’s one of the most important things you can learn before moving to Colombia — and it’s the one topic almost no one explains clearly.

Now you know.