In the United States, New York, San Francisco, and Los Angeles are among some of the most expensive places to live, especially known for their skyrocketing rent costs. These cities, however, are shy in comparison to the expense of some international cities.
To determine the most expensive cities in the world, the Economist Intelligence Unit surveyed prices of 160 products and services, such as rent, utilities, transportation, food, and more, in cities around the world. The resulting report is designed to help companies calculate the cost-of-living for employees traveling and living abroad. The prices in the analysis are in U.S. dollars, so the list is tied to how much the dollar is worth. Cities that use Euros would need more dollars to purchase something because the Euro is worth more than the dollar. This being said, even though U.S. cities are becoming more expensive each year, they are not at the top of the list due to a weakening dollar, making them less expensive in comparison to other cities in the world.
The ten most expensive cities in the world are:
- Singapore
- Paris, France
- Zurich, Switzerland
- Hong Kong
- Oslo, Norway
- Geneva, Switzerland
- Seoul, South Korea
- Copenhagen, Denmark
- Tel Aviv, Israel
- Sydney, Australia
According to the report, Singapore, Paris, and Hong Kong are tied for the most expensive city in the world.
One of the reasons that Singapore is the most expensive is the price of owning a car. According to Expatisan, owning a Volkswagen Golf in Singapore, which usually retails for $20,000 in the U.S., costs the equivalent to over $78,000.
Paris is structurally expensive, with high real estate prices which then translate to high retail prices, such as prices for brands such as Nike or Adidas. Luckily, these high prices are coupled with high salaries.
Hong Kong is consistently ranked as the most expensive housing market due to its high population density and scarce land. The developable land left in Hong Kong is controlled by the government and is sold for skyrocket prices. This, in turn, causes housing prices to be so high. On average, a person who has an annual income of $50,000 would have a home cost of $900,000. Hong Kong is known for being one of the most tax-friendly states; its low taxes made possible by the government’s revenue from selling land. This being said, if property values drop too low, the government could need to rethink its tax revenue system.
On the opposite end, some of the most inexpensive cities in the world are Caracas, Venezuela; Damascus, Syria; Tashkent, Uzbekistan; Almaty, Kazakhstan; and Bangalore, India.
Most Expensive Cities in the World 2023
10
Sydney, Australia
The Australian city made EIU’s list as the 10th most expensive place to live in the world, which it shares with Copenhagen, Denmark. The city inched up the list from last year when it ranked at number 14.
Among the contributing factors to the increase in Sydney’s cost of living are exorbitant rent fees – the weekly rent for a one-bedroom apartment can range from $450 to $550, and a two bedroom starts around $650 per week. High demand and low inventory in the real estate market also present city dwellers with difficulty when it comes to finding an affordable home to purchase.
9
Paris, France
The City of Love has architecture, food and fashion like no other, so it’s not surprising that living in France’s capital city of Paris is pretty pricey. A demand for housing and retail space combined with a lack of options on both fronts make affording real estate a costly challenge.
8
San Francisco, California
It’s no wonder there were nine people at one point living in the Tanner household in Full House back in the ’90s. Rent has always been pretty steep out on the West Coast, but home prices in San Francisco in 2022 increased 10% compared to the previous year, bringing the average price to around $1.5 million. Renters even need to make about $100,000 a year to live comfortably in «The Golden City.»
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7
Geneva, Switzerland
Famous for the Jet d’Eau, a.k.a. the world’s tallest water fountain, Geneva is a city with tons of luxe cafés and shopping for days. But all that luxury does come at a high price. Just for an individual, monthly expenses average out at about $3,500 when it comes to rent, food and transportation.
6
Zürich, Switzerland
Just one glance at Zürich and you can see why the stunning city is one of the priciest in the world. The financial capital, which sits at the north end of Lake Zürich, is home to waterfront promenades, high-end shopping and decadent chocolate. It’s also the most expensive Swiss city to rent in, with an average rent cost of about $2,000 for a single person.
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4
Hong Kong, China
According to EIU, Hong Kong ties with LA for fourth place in the world’s most expensive cities. With over 7 million people living in the city, it’s not necessarily the cost of rent that makes it pricey, but rather the competitive demand for housing and all the activities Hong Kong has to offer, like its endless markets, nightlife and attractions.
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1
Singapore, Singapore
Tied with New York, Singapore often tops the list. For starters, because it is such a small area, land is incredibly scarce. In addition, as the demand for property has increased the supply has been limited, making the real estate market very competitive. The city also has very few natural resources and must rely on ports to import necessities like water and natural gas electricity.
Staff Writer
Cameron (she/her) is a staff writer for Good Housekeeping, where she covers everything from holidays to food. She is a graduate of Syracuse University, where she received a B.A. in magazine journalism. In her spare-time she can be found scrolling TikTok for the latest cleaning hacks and restaurant openings, binge-watching seasons of Project Runway or online shopping.
Assistant Editor
Annie O’Sullivan (she/her) covers holiday, gift guide, travel, and lifestyle content at Good Housekeeping. She has a degree in magazine journalism from Syracuse University and previously reported for Runner’s World, NBC New York/NY 4 and Woman’s Day. Annie also has experience writing entertainment news and celebrity-focused content.
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It seems like every month when household bills come due, we grumble about how the cost of living has gone up again.
But it’s not just anecdotal. According to this year’s Worldwide Cost of Living Index, released by the Economist Intelligence Unit (EIU), the average cost of living is up 8.1% in 2022, owing to the Russian war in Ukraine and the lingering effects of the pandemic.
In other words – no, it’s not just you.
“The war in Ukraine, Western sanctions on Russia and China’s zero-Covid policies have caused supply-chain problems that, combined with rising interest rates and exchange-rate shifts, have resulted in a cost-of-living crisis across the world,” Upasana Dutt, head of worldwide cost of living at EIU, said in a media statement.
She added: “We can clearly see the impact in this year’s index, with the average price rise across the 172 cities in our survey being the strongest we’ve seen in the 20 years for which we have digital data. The rise in petrol prices in cities was particularly strong (as it was last year), but food, utilities and household goods are all getting more expensive for city-dwellers.”
So, in an expensive year, what are the most expensive cities to live in?
The EIU, which tracks everyday expenses in 172 cities around the world, is based in London. The British capital fell significantly down the list this year, landing in 27th place.
There were four European cities in the top 10 – Zurich (sixth place) was the highest, with Paris, Copenhagen and fellow Swiss city Geneva rounding out the rest.
The most significant cause of price upticks in western Europe was increasing gas prices, the result of the ongoing Russian war in Ukraine and the region trying to find alternate sources of gas. The cost of one liter of gasoline has gone up a whopping 22% compared to this period last year.
Unsurprisingly, Russian cities Moscow and St. Petersburg both saw significant hikes in cost of living expenses, while Ukraine capital Kyiv was not analyzed this year.
In addition to gas costs, one factor cited by the EIU was the uneven value of the Euro, which is used by some but not all of the European cities on this year’s list – the UK is on the pound, and Switzerland has the franc.
Three other cities in Europe – Stockholm, Lyon and Luxembourg – also declined on the list.
Although it seems like New York City should have topped the list by now, this is the first time the biggest city in the US has landed in first place – albeit in a tie with frequent winner Singapore.
In 2021’s accounting, New York was in sixth place.
Two other American metropolises also made the top 10 – Los Angeles in a tie for fourth place with Hong Kong and San Francisco in eighth.
In total, 22 of the 172 cities the EIU tracks annually are in the US, including Portland, Boston, Chicago and Charlotte. Every single one of those 22 experienced a rise in inflation this year.
Meanwhile, last year’s winner, Tel Aviv, fell to third place.
In order to create the list, the EIU compares more than 400 individual prices across more than 200 products and services in 172 cities. They survey a range of businesses, both high and low end, to get a sense of how much prices have fluctuated over the past year.
Another company, the global mobility firm ECA International, publishes its own rankings of the world’s priciest cities every year. The ECA list uses slightly different methodology, looking at everyday expenses like rent and the cost of public transit and does not include luxury products in its calculations.
Its list, published in June, awarded Hong Kong the title of most expensive city for the third year straight and New York in second. However, the ECA’s list leans heavily toward big cities in Asia, as Seoul, Shanghai and other East Asian urban centers all landed in the top 10.
The EIU list is benchmarked against prices in New York City, hence cities with currencies that are stronger against the US dollar are likely to appear higher in the rankings.
1. New York and Singapore (tie)
3. Tel Aviv, Israel
4. Hong Kong and Los Angeles (tie)
6. Zurich, Switzerland
7. Geneva, Switzerland
8. San Francisco, California
9. Paris, France
10. Copenhagen, Denmark