The most expensive cities in the world by cost of living

Like the weather, everyone talks about the cost of living, but no one does anything. Or so it seems. Some cities are simply more expensive to live in than others, and residents are forced to decide whether the amenities offered offset the higher costs. Unless, of course, their employer requires them to live in a certain city, in which case all they can do to offset the cost is ask for more money.

They need to if they're heading to a list of cities ranked solely based on cost of living as the most expensive in the world in 2021. Interestingly, New York, London, Paris, and San Francisco, all widely considered expensive cities to live in, aren't in the top ten. List, compiled by Mercer, an international human resources and investment management firm, assesses the cost of living in 207 cities. The list is intended to inform expats and the companies that employ them of the relative costs in certain areas. Here are the ten most expensive.

10. Bern, Switzerland

Bern, the capital of the Swiss Confederation, is located on a horseshoe bend of the Aare River. Compared to other international capitals, it is a relatively small city, with a population of about 144,000 (2020) in the city proper and about 660,000 in the suburbs surrounding the city. The population density is high, housing is scarce and therefore expensive. Unemployment , as in all of Switzerland, is low. As a result, the cost of living in the Swiss capital is quite high.

Housing usually costs 50% more expensive , than in comparable-sized European cities, and the cost of groceries and eating out is correspondingly high. In the area of town most favored by expats, a typical fast-food meal costs about $13. To an American visitor, the price of gasoline at the pump initially seems cheap until he realizes that the price is based on the liter, not the gallon. Gasoline costs about $6.50 a gallon, about the same as a gallon of milk.

Switzerland is well known as a tax haven and a banking stronghold known for its discretion. However, living in the Swiss capital is expensive. According to Numbeo estimates, The cost of living in Bern is more than $12% higher than New York City, which is generally considered the most expensive city in North America. Monthly expenses for one person are estimated at about $1,500, not including housing. Rent and additional housing costs such as utilities, cable TV, and Internet can easily double that amount.

9. Beijing, China

Opposite Bern, Beijing is the most populous national capital in the world. Almost 22 million people call the city home, although it is far from China's most populous city. It is also one of the oldest cities in the world, with over 3,000 years of documented history. It makes more money from tourism than any other city in the world except Shanghai. It is home to over 90 institutions of higher learning, ancient architecture, and some of the most modern in the world, and in 2021 was declared the fifth most rich city in the world.

It is also one of the most expensive cities to live in, with the cost of living exceeding that of 77% other Asian cities . The main factor in high the cost is housing, which is constantly in short supply. Living outside the city may reduce some expenses, but increases transportation costs and can result in long commutes. The cost of food is also high for those who choose to eat Western-style food and drink.

Reports from expatriates living in China suggest that the cost of living can be reduced somewhat by living as the Chinese do, rather than living a Western lifestyle. But even then cost of housing represents a huge expense. In general, the further one lives from the central business district, the cheaper the housing. And living spaces are usually small, even cramped, considering the amount of monthly budget allocated to them.

8. Geneva, Switzerland

In 2021, the cost of living in Geneva was 38% higher than in London, a city not known as an inexpensive place to live. In Geneva, as in all of Switzerland, having a cable or internet provider isn’t all you need to watch TV or radio. Switzerland requires a license to own either, which is renewed annually at a cost of about $350, or almost $30 per month. Cable and internet fees are in addition to the license. All resident households are required to pay a fee, regardless of whether they have radio and television or not.

Food in Geneva is more expensive , than in about 30% other European cities. A gallon of milk costs more than $7, as do a dozen eggs and two pounds of steak, which are over $50. On the other hand, a pint of beer for home consumption averages less than $2.50, so it's not all bad. In a pub, it's usually much higher.

Cost estimates life in Geneva varies widely among online sites and travel agencies, but Mercer ranks the Swiss city as the eighth most expensive in the world compared to 11 just three years earlier. A major international financial centre and resort, it also consistently ranks as one of the world's most livable cities, if one can afford it.

7. Singapore

Exotic Singapore always ranks high on lists of great places to live. You can sit in the famous Long Bar at Raffles, where the drink known as the Singapore Sling was invented, and to reflect that Somerset Maugham often did the same. The Raffles Hotel itself is a National Monument, declared by the government in 1987. But living in Singapore is expensive pleasure , even if someone's tastes don't run towards high-end hotels.

Rent is expensive . A small studio or one-bedroom apartment will cost a renter between $1,500 and $4,500 per month, depending on the distance from the city centre and the amenities offered. Some Singaporeans rent out rooms in their own homes for considerably less, but with restrictions on the use of the kitchen and bathroom. Not being able to cook at home increases the cost of eating out, which is also expensive.

Almost all the products in grocery stores are imported, and as a result, Western-style foods such as cheese are expensive. A pint of beer in an inner-city pub will set a drinker back more than $10, sometimes $15, making Raffles significantly less attractive to those without deep pockets.

6. Shanghai, China

The most populous urban area in China and the largest city in the world, Shanghai is also one of the most expensive. Once a small fishing village and port, it is a major international trading center, financial center, and the busiest container shipping port in the world. Unemployment is low and housing is in short supply, resulting in cost of living for residents and visitors is high.

The cost of living in Shanghai is the highest high in China. The main reason for the high cost of living is housing, which is in short supply and in high demand as employment continues to grow. Housing costs can be reduced somewhat by moving away from the city center, which of course increases transportation costs. If one can adapt to the Chinese lifestyle, especially in terms of diet, costs can also be reduced. But overall, Mercer lists it as the sixth most expensive city in the world.

According to one website, Living in Shanghai costs about $8,000 a year, not including housing costs, including rent, utilities, and internet. Rent adds at least $14,000 a year for a small apartment outside of central Shanghai. While that sounds low, in practice, according to Mercer and other sites, the costs are actually much higher, and wages in Shanghai have not kept up with the costs.

5. Zurich, Switzerland

Zurich — the largest city in Switzerland and one of the world's largest financial centers. The cost of living is high, as in other Swiss cities, primarily due to high salaries and government fees on most services. Residents are required to purchase health insurance, and insurers are required to offer basic coverage at zero percent. This means that health care is relatively affordable, although most services require a co-payment.

Food is expensive, especially meat, especially beef. Eating out is also expensive, although most Swiss eat their main meal of the day at lunch, when prices are sometimes reduced for menu items, and for portions. Rent in the city is very high . Going outside the central area brings some relief, but a basic one-bedroom apartment for less than $1,000 a month is rare. And the cost of finishing it is also high.

Owning a car is expensive. Not only are vehicle taxes, fuel and maintenance expensive, but free parking is virtually non-existent even in the suburbs. Unfortunately, public transport, Although reliable, it is more expensive than most European cities, with a trip from the suburbs to the city centre costing on average around $15.

4. Tokyo, Japan

Although Tokyo is an ancient city, modern Tokyo is less than 80 years old. The city was nearly destroyed during World War II and rebuilt from scratch in the decades that followed. The modern city, which literally rose from the ashes of American bombing, is the largest urban economy in the world by gross domestic product. It is also one of the most expensive cities in the world. Back in 2019, Mercer ranked it as the second most expensive city.

Price life in Tokyo expensive for Japanese people too, as the Japanese government estimates that the region is about 10% more expensive than the rest of the country. According to one website, , to cover basic living expenses in Tokyo for one person living in a 200-square-foot one-room apartment some distance from a public transportation stop, near $1500 per month . For more comfortable places to live, the price skyrockets.

A less space-constrained apartment in a location more convenient to public transportation costs $2,000 and up. But there are a few larger apartments. The Japanese generally prefer smaller homes with fewer Western furnishings, and Western expats often find that they have to pay more for less. And as Tokyo continues to grow, the cost of living is rising , partly because of rising wages needed to attract workers to the Japanese capital.

3. Beirut, Lebanon

Most expensive city in the middle east — is a Lebanese city that was once known as a tourist paradise for its beaches and entertainment. In just one year, Beirut has fallen from 45th to third on the list of most expensive cities, according to Mercer. A car is essential, as the public transportation system is unreliable at best, and taxis, when available, are often expensive for more than a mile or two.

Although another study, Eurostat ranks Beirut fourth on the list of the most expensive cities, it agrees with others that the main reason is high rent. This is the Middle East, and rents in safe areas of the city and its suburbs are significantly higher than in risky areas. Consumer goods are also expensive, as are the prices of some food items. Beef costs $35 a pound, although most fresh fruits and vegetables are relatively inexpensive.

Inflation has led to a dizzying rise in prices. In the spring of 2023 inflation rate reached 208% and stayed close to that benchmark. And if the cost of housing within the city limits is high, then the cost of furnishing an apartment is even higher, along with the prices of furniture, appliances, etc. A package of household items that would cost $2,500 in New York costs $6,450. In a similar comparison of groceries, $2,000 in New York costs about $4,600 in Beirut.

2. Hong Kong SAR, China

Densely populated Hong Kong is an offshore financial center recognized by the International Monetary Fund and is home to the third-largest concentration of billionaires in the world. It also has one of the highest life expectancies in the world for its lifetime residents. It is home to more than 7 million people in just over 424 square miles. it's expensive. In 2021, it fell from most expensive to second on Mercer's list, but not because the cost of living has fallen.

Cost of living deficit leads housing , and the resulting high cost of living. In Hong Kong, a very large percentage of income goes to very small housing. Most of the food available in stores and markets comes from China, and for the most part, it is relatively affordable. Imported food from Australia, the United States, and other regions is also affordable and expensive. Meat is the leading food item.

So, unless one is ready to join the billionaire club in Hong Kong, life there is a daunting proposition, at least in terms of cost of living. In Hong Kong, as in all the cities on this list, it is easy to find websites that claim numerous ways to beat high cost life, although with dubious sources, beyond anecdotal examples.

1. Ashgabat, Turkmenistan

In 1948, an earthquake destroyed much of Ashgabat, killing 110,000 people. After its complete rebuilding, Ashgabat now boasts more than 500 white marble buildings. After the collapse of the Soviet Union, the city was rebuilt again, and white marble buildings replaced the drab grey buildings favoured by the Soviets. The BBC calls it " City of extremes "One of which is the highest cost of living in the world, according to Mercer.

In Ashgabat, the cost of alcohol and tobacco, clothing, mobile communications, the Internet, furniture and household appliances, food, restaurants and unforeseen expenses is many times higher than in New York For example, a $200 call in New York costs more than $300 in Ashgabat, and $1,000 worth of groceries costs about $1,500. Clothing is also very expensive, and one must be careful when buying, as counterfeit Western goods are common.

According to data Numbeo , a 12-ounce bottle of beer costs just under $13, utilities for a small studio apartment are over $1,000 a month, and a pair of Levi 501 jeans are $125. What makes Ashgabat so expensive? According to most sites, the top spot on the list is occupied by rampant inflation and corrupt repressive government . Ashgabat is the capital of Turkmenistan, although it lacks the bustle that usually characterizes a country's capital, and visitors are often presented with nearly empty streets.