As with 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 costs is ask for more money.
They need it 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 generally considered expensive cities to live in, don't make the top ten. List, compiled by Mercer, An international human resources and investment management firm, estimates the cost of living in 207 cities. This list is intended to inform expatriates and the companies that employ them about the relative costs in specific areas. Here are the ten most expensive.
10. Bern, Switzerland
Bern, the capital of the Swiss Confederation, is located on a horseshoe-shaped bend of the Aare River. Compared to other international capitals, it is a relatively small city, with a population of approximately 144,000 (2020) in the city proper and approximately 660,000 in the surrounding metropolitan area. The population density is high, and housing is scarce, making it expensive. Unemployment , as throughout 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 European cities, and the cost of groceries and eating out is correspondingly high. In the city's most expat-favorite area, a typical fast food meal costs around $13. To an American visitor, the price of gasoline at the pump initially seems cheap until they realize it's based on the liter, not the gallon. Gasoline costs around $6.50 per gallon, about the same as a gallon of milk.
Switzerland is well known as a tax haven and a banking bastion renowned for its prudent practices. However, living in the Swiss capital is expensive. According to Numbeo estimates, The cost of living in Bern is more than $121,000 higher than in New York City, commonly considered the most expensive city in North America. Monthly expenses for one person are estimated at approximately $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. Nearly 22 million people call the city home, though it's far from China's most populous city. It's also one of the oldest cities in the world, with over 3,000 years of documented history. It earns more money from tourism than any other city in the world except Shanghai. It's home to over 90 institutions of higher education, ancient architecture, and some of the world's most modern buildings, and in 2021, it 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 of high the cost is housing, which is constantly in short supply. Living outside the city can reduce some expenses, but increases transportation costs and can lead to long commutes. The cost of food is also high for those who choose to eat Western-style food and drinks.
Reports from expatriates living in China indicate that the cost of living can be somewhat reduced by living like the Chinese, rather than adopting a Western lifestyle. But even so, cost of housing represents a huge expense. Generally, the further one lives from the central business district, the cheaper the housing. And living spaces are usually small, even cramped, considering the monthly budget allocated for them.
8. Geneva, Switzerland
In 2021, the cost of living in Geneva was 38% higher than in London, a city not known for being an affordable place to live. In Geneva, as throughout Switzerland, having a cable or internet provider isn't all you need to watch television or radio. In Switzerland, a license for either is required, which is renewed annually at a cost of approximately $350, or almost $30 per month. Cable and internet connections are paid 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 is more expensive in Geneva , than in approximately 30% other European cities. A gallon of milk costs over $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. Prices at the pub are generally much higher.
Cost estimates life in Geneva Prices vary 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, it was a major international financial center and resort, and consistently ranked as one of the most livable cities in the world, if you 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 in Raffles, where the drink known as the Singapore Sling was invented, and reflect on how Somerset Maugham often did the same. The Raffles Hotel itself is a National Monument, declared by the government in 1987. But living in Singapore— an expensive pleasure , even if someone's tastes don't run towards high-end hotels.
The rent is expensive . A small studio or one-bedroom apartment will cost between $1,500 and $4,500 per month, depending on the distance from the city center and the amenities offered. Some Singaporeans rent out rooms in their own homes for significantly less, but with restrictions on kitchen and bathroom use. The inability to cook at home increases the cost of eating out, which is also expensive.
Almost all groceries are imported, making Western-style items like cheese expensive. A pint of beer in a pub in the city center will set a drinker back over $10, sometimes even $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 has become a major international trade hub, financial center, and the busiest container shipping port in the world. Unemployment is low, and housing is scarce, resulting in cost of living for residents and visitors is high.
The cost of living in Shanghai is the lowest 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 somewhat reduced by moving further away from the city center, which, of course, increases transportation costs. Adapting to the Chinese lifestyle, especially in terms of diet, can also reduce costs. Overall, however, Mercer ranks it as the sixth most expensive city in the world.
According to one website, Living in Shanghai costs around $8,000 per year, not including housing expenses, including rent, utilities, and internet. Rent adds at least $14,000 per year for a small apartment outside of central Shanghai. While this seems low, in practice, according to Mercer and other websites, costs are actually much higher, and salaries in Shanghai don't keep up.
5. Zurich, Switzerland
Zurich — Switzerland's largest city 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 a zero rate. This means healthcare 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 menu prices are sometimes reduced, as are portion prices. Rent in the city is very high . Leaving the central area offers some relief, but a simple one-bedroom apartment for less than $1,000 per 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 nonexistent even in the suburbs. Unfortunately, public transport, Although reliable, it is more expensive than in most European cities: a trip from the suburbs to the city center costs on average about $15.
4. Tokyo, Japan
Although Tokyo is an ancient city, modern Tokyo is less than 80 years old. The city was virtually destroyed during World War II and rebuilt from scratch in the following decades. 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. In 2019, Mercer ranked it second on its list of the most expensive cities.
Price life in Tokyo expensive for Japanese people too, as the Japanese government estimates that the region is approximately 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 studio apartment some distance from a public transportation stop, near $1,500 per month . For more comfortable places to live, the price skyrockets.
A less cramped apartment in a location more convenient to public transportation costs $2,000 and up. However, a few larger apartments exist. Japanese people generally prefer smaller homes with fewer Western furnishings, and Western expats often find they have to pay more for less. And as Tokyo continues to grow, the cost of living is rising , partly due to rising wages needed to attract workers to the Japanese capital.
3. Beirut, Lebanon
Most an expensive city in the Middle East Beirut is a Lebanese city once known as a tourist paradise for its beaches and entertainment. According to Mercer, in just one year, Beirut has fallen from 45th to third on the list of most expensive cities. A car is essential, as the public transportation system is unreliable at best, and taxis, when available, are often expensive for distances greater than a mile or two.
Although another study, Eurostat ranks Beirut fourth While it's 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 riskier areas. Consumer goods are also expensive, as are the prices of some groceries. Beef costs $35 per pound, although most fresh fruits and vegetables are relatively inexpensive.
Inflation has led to a dizzying rise in prices. In the spring of 2023 The inflation rate reached 208% And it remained close to this benchmark. While housing costs within the city are high, the cost of furnishing an apartment is even higher, along with the price of furniture, appliances, and other items. A package of household items that would cost $2,500 in New York costs $6,450. Similarly, comparing 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 boasts one of the highest life expectancies in the world for its lifelong residents. Over 7 million people live within its area of just over 424 square miles. It's expensive. In 2021, it fell from the most expensive to second on Mercer's list, but not because the cost of living has fallen.
The deficit is leading in the cost of living housing , and the resulting high cost of living. In Hong Kong, a very large percentage of income goes toward very small housing. Most of the food available in stores and markets is imported from China, and for the most part, it's relatively affordable. Imported food from Australia, the United States, and other regions is also available and expensive. Meat leads the food budget.
So, unless you're ready to join Hong Kong's billionaire club, 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's easy to find websites that claim numerous ways to overcome high cost life, albeit 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 boasts over 500 white marble buildings. After the collapse of the Soviet Union, the city was rebuilt again, and white marble buildings replaced the dreary gray buildings favored 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, cell phones, internet, furniture and household appliances, groceries, restaurants and unforeseen expenses is many times higher than in New York . For example, a $200 phone call in New York costs more than $300 in Ashgabat, and $1,000 worth of groceries costs around $1,500. Clothing is also very expensive, and one must be careful when shopping, 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 per month, and a pair of Levi 501 jeans are $125. What makes Ashgabat so expensive? According to most websites, 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.