In order to make the list of the most expensive cities in the world, EIU sets out to compare the price of more than 200 products and services across 172 cities. To make a sense of how much the prices of goods and services have fluctuated in the past year, EIU surveys both high-end and low-end businesses.
The Covid-19 pandemic has been the biggest factor affecting the cost of living because of changes in lifestyle, local currency exchange movement, supply chain problems, a fall in disposable income, and government action. Let’s take a look at the 10 most expensive cities in the world.
New York and Singapore
New York is the most expensive city in all of the United States of America and this is mostly attributed to its highly competitive housing market. The rent for a one-bedroom apartment can be somewhere between $3,300 and $4,300 per month. According to a study, housing in New York is 258% more expensive than the US average.
Like New York, in the past decade, Singapore has also become a fixture in the most expensive cities in the world list. And just like in New York, since there is a scarcity of properties, the real estate market is also very competitive. Plus, the entire city relies on its ports to import basic necessities such as water, natural gas, and electricity.
Tel Aviv, Israel
Tel Aviv, Israel has now become one of the most expensive cities in the world as Israel’s national currency keeps on appreciating against the U.S. dollar. According to Haaretz, a reputable Israeli news website, the reason behind Israel’s increasing cost of living is also due to the price increase for one-tenth of the goods and services in the city, especially groceries and transport. The property rates in its residential area are also increasing at a steady rate.
Hong Kong and Los Angeles
Hong Kong is one of the most densely populated Chinese cities with over 7 million people living in the city. Unlike New York, Singapore, and Tel Aviv, the cost of rent in Hong Kong is not the reason behind it being extremely expensive. Instead, it is the lack of supply of land along with the scarcity of resources that make it such an expensive city.
Los Angeles ties in the 3rd position with Hong Kong for the title of the most expensive city in the world. The reason behind Los Angeles’ high rating is its high population, the competitive housing market, and the high taxes LA levies on residents, along with the high taxes make it a costly place to live.
Zurich, Switzerland
Over the last couple of years, Zurich has been awarded the title of most expensive city largely because of the shift in consumer behavior, the impact of taxes and subsidies, supply chain problems, and currency volatility. Zurich is also considered the most expensive Swiss city to rent in because the average rent is somewhere around $2,000. However, wages are still high thanks to the pharmaceutical, chemical, insurance, and luxury goods industries.
Geneva, Switzerland
Other than Zurich, Geneva is another Swiss country that has made its way on the list of the most expensive cities. Rent, high prices of groceries, food, and transportation contribute to its high cost of living.
San Francisco, California
The San Francisco metro area is the most expensive region in the U.S. because of its extremely competitive housing market and high utility cost. Rent in San Francisco is increasing right now because the city is experiencing a massive job market boom which is attracting more people to the region.
Paris, France
Paris, France the city of love, architecture, food, and fashion attracts new residents every year. And the growing demand for housing along with the limited retail pace has made Paris real estate extremely costly. However, Parisians don’t see this as a reason for concern partly because of the high wages paid to workers.
Copenhagen, Denmark
In its entirety, the country of Denmark is extremely expensive to live in because of its high-income tax and high costs of consumer items. However, Denmark also offers its residents an excellent standard of living, universal and free healthcare, and even free higher education.
