You’ve probably seen the headlines. One year it’s Singapore. The next, it’s Zurich. Then Hong Kong or New York jumps back into the lead. It feels like a high-stakes game of musical chairs played with bank accounts and rent checks. But honestly, the costliest city to live in the world isn't just a single name on a trophy—it’s a moving target that depends entirely on who is asking and how you spend your money.
Why the "Most Expensive" title is a bit of a moving target
If you’re an expat being relocated by a big tech firm, your "expensive" looks a lot different than a local student’s "expensive." Rankings from groups like the Economist Intelligence Unit (EIU) and Mercer aren’t just looking at the price of a loaf of bread. They’re tracking the "Certificate of Entitlement" for cars in Singapore or the astronomical private school fees in Hong Kong.
Take Zurich. In 2025 and 2026, it has consistently clawed its way to the top. Why? Because the Swiss franc is incredibly strong. When your local currency is basically a safe haven for the world’s wealth, your grocery bill starts to look like a mortgage payment to everyone else.
The heavy hitters: Singapore and Zurich
Singapore is a fascinating case. It’s a tiny island with almost no natural resources. They have to import basically everything—from the water you drink to the natural gas that keeps the lights on. Over 90% of the food is brought in from abroad. When you combine that with a government policy that makes owning a car cost upwards of $100,000 just for the permit (the COE), you get a city that is designed to be pricey.
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But here is the twist: if you eat at a local "hawker center" in Singapore, you can get a world-class meal for $5. Try doing that in Zurich. In Switzerland, a casual lunch for two can easily clear $70 without even trying. Zurich doesn't have the "cheap" tier that Singapore offers, which is why many people find Zurich’s cost of living more punishing on a day-to-day basis.
The rental trap: Hong Kong and New York
If groceries are the killer in Switzerland, rent is the assassin in Hong Kong and New York City.
In Hong Kong, land is so scarce that developers have no choice but to build vertically. It’s a city of glass towers and "coffin homes." For a standard one-bedroom apartment in a decent area, you’re looking at $3,000 to $5,000 a month. It’s a similar story in Manhattan. Space is the ultimate luxury.
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- Hong Kong: Median home prices can reach 16.7 times the median household income.
- New York: Rent in Brooklyn or Manhattan can easily eat 50% of a professional's take-home pay.
- London: While it dipped in the rankings recently due to currency shifts, it’s still a place where "flat-sharing" is a reality for people well into their 40s.
The 2026 reality: Inflation and the "Expat Premium"
The latest data from early 2026 shows a bit of a cooling in some areas, but "sticky" inflation in groceries and clothing is keeping European cities like Geneva and Copenhagen right at the top. Mercer’s 2025/2026 reports highlight that while supply chains have mostly healed, the cost of labor is higher than ever. That means anything involving a service—haircuts, dining out, repairs—is significantly more expensive than it was three years ago.
You also have to consider the "Expat Premium." Companies like Pacific Prime and ECA International specifically look at what it costs to maintain a "Western" lifestyle in these cities. If you want imported peanut butter in Tokyo or a specific brand of cereal in Dubai, you’re going to pay for it.
Surprising entries in the top 10
Did you know Nassau in the Bahamas is often more expensive than Los Angeles? Or that Tel Aviv, despite geopolitical instability, remains one of the priciest places on the planet for tech workers? These aren't just vacation spots; they are hubs where demand for limited resources creates a permanent "high-price" environment.
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The hidden costs nobody talks about
It’s easy to focus on rent, but the smaller stuff adds up.
In Geneva, private health insurance is a massive, mandatory expense that can catch newcomers off guard. In Singapore, the "sin taxes" on alcohol and tobacco are so high that a pint of beer can cost $15 to $20 at a standard bar.
Then there’s the "Lifestyle Creep." In a city like Los Angeles, you aren't just paying for an apartment; you’re paying for the car, the insurance, the gas, and the parking—because the public transit just isn't there yet. Contrast that with Copenhagen, where you might pay more in tax, but you can cycle everywhere and your healthcare is covered. It's about where you choose to "lose" your money.
How to survive the costliest city to live in the world
Living in a top-tier city doesn't have to mean being broke. It just requires a different strategy.
- Live like a local, not an expat. This means eating where the locals eat and shopping at neighborhood markets instead of the "International" aisle.
- Ditch the car. In 8 of the top 10 most expensive cities, a car is a liability. Use the high-quality public transit that your high taxes or high rents are usually funding.
- Negotiate your housing. In cities like Zurich or New York, the "sticker price" for rent is often just a starting point or a dream for the landlord. Look for rent-controlled options or slightly longer commutes.
- Understand the tax benefits. Some high-cost cities have lower income tax rates (like Singapore) which offsets the high cost of goods. Do the math on your "net" income, not just your salary.
The costliest city to live in the world is rarely a permanent title. It shifts with the tides of global economics, currency fluctuations, and housing bubbles. Whether it's the high-rise luxury of Hong Kong or the pristine streets of Zurich, these cities offer a trade-off: you pay a premium for safety, opportunity, and world-class infrastructure. If you can navigate the hidden fees and the rental traps, the "cost" is often an investment in a lifestyle you can't find anywhere else.
To make the most of your move or stay in a high-cost city, start by auditing your "imported" habits. Identify the three biggest non-rent expenses—usually transport, dining, and insurance—and look for local alternatives that don't carry the "expat tax." Moving your grocery shopping from a high-end supermarket to a local market in a city like Geneva can save you nearly 30% on your monthly food budget immediately.