Economy

The World's Most Expensive Cities

Douglas A. McIntyre

Published: December 10, 2023 7:21 am

Some of the largest cities in developed nations have reputations for a high cost of living. This is certainly true in the US. New York, LA, and San Francisco are notorious for the expense of housing, transportation, and even food. However, according to a new study, the most expensive cities in the world are not in America. They are Zurich, Switzerland, and Singapore.

The Economist Intelligence Unit conducts a study titled “These are the world’s most expensive cities” once a year. The EIU uses its own price measures, including 200 products and services. Cities receive a score. Zurich and Singapore have the highest at 104. New York is third on the list with a score of 100. Los Angeles ranks 5th with a score of 97. San Francisco ranks 10th with a score of 86. What some would consider America’s most expensive city is not on the list.

Damascus is at the far end of the spectrum, scoring 13. The capital of Syria is among the oldest cities in the world. It has a population of about 2.5 million.

Zurich and Singapore could not be further apart geographically. There are 6,300 miles between them.

The two cities do have several things in common. Singapore is listed among the world’s richest cities based on its number of millionaires. Zurich received a similar distinction.

Zurich and Singapore are also among the world’s largest financial centers. Part of that yardstick is based on the number of banks and investment houses. Employees at many of these are paid extremely well, which tends to push up prices. Three of the largest employers in Singapore are banks. Another is in the real estate business. One of the largest employers in Zurich is the high-end engineering firm ABB. It is also home to five of Switzerland’s largest banks. Among them is UBS, one of the biggest banks in the world.

The cost of living in a city presents challenges, particularly for lower-income families and even the middle class. The New York Times recently reported that, at the other end of the spectrum, these high-priced cities are favored by the rich. The paper pointed out that, post-pandemic, “The ranks of millionaires have come surging back, while lower- and middle-income New Yorkers are heading for the exits..” Expensive cities are particularly expensive, except for the rich.