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Where personal wealth is concerned, there are two sides to every story.
The first of which is the amount of money a person earns, and the other is what they choose to spend their money on. The latter is influenced by the cost of living in the city where they reside—an ever-changing metric that is driven by a wide variety of factors, such as currency, population growth, or external market movements.
Today’s graphic visualizes the findings from the 2020 Worldwide Cost of Living report and uses data from 133 cities to rank the most expensive cities in the world.
Note: Report research was conducted towards the end of 2019, before the COVID-19 outbreak.
Asia Dominates the Ranking
Globally, the cost of living has fallen by an average of 4% over the last year, with much of the movement up and down the ranking being driven by currency fluctuations.
The locations with the highest cost of living are largely split between Europe and Asia. For the second time in the report’s 30-year history, three cities are tied as the top spot—Singapore, Hong Kong, and Osaka.
Rank
Country
City
Index Score (New York=100)
Rank Movement
#1(t)
🇸🇬 Singapore
Singapore
102
0
#1(t)
🇨🇳 China
Hong Kong
102
0
#1(t)
🇯🇵 Japan
Osaka
102
4
#4
🇺🇸 United States
New York
100
3
#5(t)
🇫🇷 France
Paris
99
-4
#5(t)
🇨🇭 Switzerland
Zurich
99
-1
#7
🇮🇱 Israel
Tel Aviv
97
3
#8(t)
🇺🇸 United States
Los Angeles
96
2
#8(t)
🇯🇵 Japan
Tokyo
96
5
#10
🇨🇭 Switzerland
Geneva
95
-5
Source: EIU. New York City is index baseline (score = 100). Ties in index score values are denoted by (t).
Osaka is a newcomer to the top spot, climbing four places over the last year to join cost of living heavyweight champions, Singapore and Hong Kong. As Japan’s third-largest city, Osaka is a major financial hub and a breeding ground for emerging startups, with relatively low real estate costs compared to Singapore and Hong Kong.
Three European cities (Paris, Zurich, and Geneva) sit atop the most expensive city rankings, compared to seven cities only 10 years ago. Similarly, 31 of the 37 European cities have seen a decrease in cost of living overall—largely as a result of the Euro or local currencies losing value relative to the U.S. dollar.
Finally, the top 10 is rounded out with two cities from the United States (New York, Los Angeles) and one from Israel (Tel Aviv).
The Cheapest Cities
While East Asia is home to many of the world’s most expensive cities, South Asia hosts the largest grouping of cities with the lowest cost of living.
Rank
Country
City
Index Score (New York=100)
Rank Movement
#133
🇸🇾 Syria
Damascus
25
-1
#132
🇺🇿 Uzbekistan
Tashkent
30
-1
#131
🇰🇿 Kazakhstan
Almaty
34
-1
#129(t)
🇦🇷 Argentina
Buenos Aires
35
-4
#129(t)
🇵🇰 Pakistan
Karachi
35
-2
#128
🇻🇪 Venezuela
Caracas
36
5
#127
🇿🇲 Zambia
Lusaka
38
-13
#126
🇮🇳 India
Chennai
39
-1
#125
🇮🇳 India
Bangalore
40
4
#122(t)
🇮🇳 India
New Delhi
42
1
Source: EIU. New York City is index baseline (score = 100). Ties in index score values are denoted by (t).
Three Indian cities dominate the cheapest cities ranking due to a combination of low wages and high levels of income inequality, preventing any price increases.
Meanwhile, political and economic turmoil is a common denominator among the cheapest cities outside of South Asia. For example, the Syrian Civil War resulted in an economic collapse, leading to high inflation and a downward spiral in value for the Syrian pound.
A Spanner in the Works
The COVID-19 pandemic is estimated to cost the global economy up to $2 trillion in 2020, so while governments attempt to boost the economy, many are concerned about higher inflation rates spreading across the world.
With a recession becoming more likely, uncertainty around real estate prices will heighten for every city, regardless of their cost of living ranking.
As we navigate chaotic and uncertain times, the next cost of living survey could look very different to today—the most important question will be how permanent the damaging effects of the pandemic will be.