Depending on who you ask, living in one of the most expensive cities in the world is either a blessing or a curse. It could mean you have access to a booming job market, world-class cultural institutions, or year-round warm weather (or all of the above). But it could also mean you’re subjected to sky-high housing costs and inflated prices for goods and services. So, take this list of the world’s priciest places—according to the most recent Cost of Living City Ranking from consulting firm Mercer—as either motivation or a warning. Maybe you strive to live in one of the most sought-after metropolises, or perhaps you’d rather pick a more budget-friendly place to live.
The most expensive places to live
1. Hong Kong, China
Cosmopolitan Hong Kong consistently tops the Mercer ranking as well as other lists of the world’s most expensive cities. Limited land is one major reason that housing prices soar here. Hong Kong is spread over 260 mountainous islands, so buildable terrain is scarce. With limited supply, prices are significantly up.
2. Singapore
Singapore, the city-state of six million inhabitants, comes in just behind Hong Kong for the world’s most expensive city. But for anyone who keeps an eye on high-priced places, that’s probably no surprise. For more than a decade, Singapore has topped The Economist’s own cost-of-living index (sometimes alone and other times sharing the distinction). Here, transportation and clothing are two categories where costs are significantly above average.
3. Zurich, Switzerland
If you take away one thing from this ranking, it’ll probably be that it’s very expensive to live in Switzerland. The nation known for its neutrality and stunning alpine scenery makes not one, not two…but four appearances on this list. And its largest municipality, Zurich, tops the Swiss cities. The power of the Swiss Franc as well as all the highly skilled (and therefore highly paid) workers drawn to this global financial center contribute to its overall steep cost of living.
4. Geneva, Switzerland
As with Zurich (and Basel and Bern, which are coming up), a combination of factors make Geneva so expensive, including the strength of the Swiss Franc and high wages and labor costs. These in turn drive up the costs for goods and services. Speaking more specifically about Geneva, the city is small and densely populated, with major international institutions—such as the UN—in town. This drives up demand for housing and therefore prices.
5. Basel, Switzerland
Before you swear off Switzerland completely, keep in mind that along with the high costs in this Central European country comes a high quality of life. The Basel area, in particular, has top-notch healthcare—thanks in part to its world-class clinic the University Hospital of Basel—excellent education, and a low crime rate.
6. Bern, Switzerland
As you might imagine, the capital of Switzerland is also quite costly. Like Geneva, Bern is a hub for political activity and plays host to a number of international organizations, which drives up housing demand and costs. But on the bright side, housing here does tend to be slightly less than in both Zurich and Geneva.
7. New York City, United States
Limited housing and a booming economy lead to higher costs in the Big Apple. Among US cities, NYC tops the list of most expensive places. These days the average rent hovers around $3,931 per month, which is 149% higher than the national average rent price of $1,577 per month, according to Apartments.com.
8. London, England
The Big Smoke’s status as a global financial hub, combined with high taxes and a high housing demand with a limited supply, are all factors that drive up expenses. With four Swiss cities taking up a huge portion of the top 10, the United Kingdom’s capital is the only other European city on this list. But other major cities in Europe with high prices include Copenhagen, Denmark; Vienna, Austria; and Paris, France; which rank 11th, 24th, and 29th, respectively.
9. Nassau, Bahamas
Real estate in a tropical paradise doesn’t come cheap, as is the case here in the capital of the Bahamas. Add to that, a large percentage of commercial goods are imported here, with taxes added on—all of which makes everyday items quite pricey. However, the Bahamas does not impose an income tax on its residents, which may be a perk for many.
10. Los Angeles, United States
Not only is California home to the US’s second most expensive city, according to Mercer, it’s also home to its fourth—San Francisco (Honolulu, Hawaii, snagged the country’s third place designation). Like so many places on this list, limited housing with a lot of demand makes LA so costly. According to Apartments.com, the average rent here is $2,167 per month. The median listing price for a home is $1.2 million, which is up 2.5% from last year, according to Realtor.com. Perhaps it’s the Pacific Coast in year-round nearly perfect weather that continues to draw residents.
