The density remains among the lowest in America (15 residents / km²). According to 800zipcodes, the most populated areas are the agricultural districts of the Oriental Region, between Paraguay and the eastern hills; the density is decreasing both towards the northern forest regions and in those towards the course of the Paraná; thus in the Región Occidental there is a density of 1 residents/km². Very low densities are recorded in Chaco, especially in the department of Upper Paraguay, where there are few colonized areas around old military garrisons. The majority of the population is made up of crossbreeds (86%). Of these, some groups still live isolated, in primitive conditions, according to the original customs (lengua, macá, cainguá etc.), in the Chaco and in the forest areas of eastern Paraguay. The most marked crossbreeding occurs in urban centers, where the majority of blacks, Creoles and Europeans also live, representing 9.3% of the total. In the nineties of the twentieth century, international organizations reported the almost total disappearance of the Ayoreo Indians, residents of the Chaco forests, caused by the pressure of the Mennonite communities, who practice intensive agriculture by deforesting various portions of forest and above all of the timber multinationals. 41.5% of the population is rural: the villages are poor, with huts made of adobes, the clay bricks dried in the sun. Characteristic, however, are the settlements founded by European settlers, who generally live completely isolated, without contact with the local population, meticulously perpetuating habits and customs that have now disappeared in Europe, this aspect – of the archaic survivals – particular of Paraguay.

They are also concentrated in certain areas: the Germans in the Encarnación area, the Italians in Villeta, just S of Asunción, the Mennonites in Filadelfia and in other places in the Chaco (there are, in addition to this, very significant toponyms, such as Nueva Germania, Puerto Mihanovich etc.). Particular are the villages of the Mennonites, regular in their succession of houses and cultivated rectangles, so as to recreate a Dutch geometry in the harsh region of Chaco. L’ urbanization has taken place gradually over the last few decades, firstly thanks to immigration, then through the colonization plans of marginal areas. In the first phase, small and ancient cities of the country, such as Concepción, Encarnación and Villarrica joined by rail or by river routes to the capital and the main Argentine cities, had simple market and service functions; colonies of farmers grew up around them, mostly foreigners. At the beginning of the year 2000, after the development of the road and railway network and of industry, new centers were developed, mainly located along the border with Brazil, such as such as Concepción, Encarnación and Villarrica joined by rail or river routes to the capital and the main Argentine cities, had simple functions of market and services; colonies of farmers grew up around them, mostly foreigners. At the beginning of the year 2000, after the development of the road and railway network and of industry, new centers were developed, mainly located along the border with Brazil, such as such as Concepción, Encarnación and Villarrica joined by rail or river routes to the capital and the main Argentine cities, had simple functions of market and services; colonies of farmers grew up around them, mostly foreigners. At the beginning of the year 2000, after the development of the road and railway network and of industry, new centers were developed, mainly located along the border with Brazil, such as Pedro Juan Caballero, Hernandarias, Ciudad del Este, on Paraná at the confluence with the Iguaçu, which is the second largest city in Paraguay. The largest city in the country is the capital Asunción, which with the urban agglomeration absorbs approx. one third of the total population. Its topography has remained that established at the time of the Spanish conquest and is characterized by the regular checkerboard of the roads, which slope down towards the river port. Favorably located on the left bank of the Río Paraguay, it has always played an important role as a center of river traffic and as a base for colonization of the inland regions of the Platense basin and is made vital by centralizing all the main economic and financial activities of the country., cultural and administrative. In the Central department, close to the capital, there are other populated centers such as San Lorenzo, the third in the country as well as a university city, Luque, founded in the 17th century and Capiatá. The other centers are very modest in size; they represent the fulcrum of the most colonized and populated areas in the best agricultural districts or in the commercial centers located on the banks of the rivers.