In this article, we will take a look at the 20 cities with the highest cost of living in Europe. You can also check out the 30 Most Expensive Cities to Live in the US in 2024.
According to a European Parliament Eurobarometer survey, the rising cost of living is a major concern across Europe, with a whopping 93% of Europeans worried. High taxes affecting housing, energy, and daily expenses are forcing people to make significant adjustments to their budgets.
The rising inflation and cost-of-living crisis in several European countries can be attributed to various factors, including monetary policies and geopolitical events like Russia’s invasion of Ukraine. Government intervention in the economy, such as burdensome regulations and excessive taxation, is also contributing to high consumer prices.
One sector significantly impacted by these economic pressures is transportation. According to a 2022 report by the World Economic Forum, Europeans pay some of the highest public transport fares globally. Switzerland tops the list with an average monthly cost of $46 for local and regional connections. Nordic countries like Denmark and Sweden follow closely behind, with average monthly fares exceeding $40. A 2023 report by Greenpeace reinforces this trend, highlighting that many European countries lack affordable public transport options compared to other parts of the world. Moreover, an average 11% tax on public transport tickets further increases costs, adding to the financial burden on households.
Despite these challenges, public transportation remains essential in Europe. Europe’s public transportation market is projected to expand at a compound annual growth rate (CAGR) of 4.9% between 2022 and 2028 due to strong demand by locals and tourists. Major players in the market include Alstom SA (EPA:ALO), Mobico Group Plc (LON:MCG), and ComfortDelGro Corporation Limited (SGX:C52).
Alstom SA (EPA:ALO) is a French company involved in designing and building trains, trams, and other rail equipment for passengers and cargo. It operates in over 60 countries and has left its mark on major city transportation systems worldwide. The company recently announced a goal to lower train energy consumption by 25% by 2025, building on their impressive 23.4% reduction already achieved.
Mobico Group Plc (LON:MCG), a leading international shared mobility provider, has a strong presence across Europe. It operates transportation services through subsidiaries like ALSA across 11 countries, with some international coach services reaching even further. In 2023, the company announced the acquisition of 43 new contracts totaling over £1 billion in value. Mobico Group Plc (LON:MCG) expects to record an adjusted operating profit in the range of £185 million to £205 million in 2024.
ComfortDelGro Corporation Limited (SGX:C52) is a Singapore-based land transport giant with a significant presence in Europe. The company’s operations span across six European countries: the United Kingdom, France, Spain, Portugal, Greece, and the Netherlands. ComfortDelGro Corporation Limited (SGX:C52) partners with airlines, ground handlers, train operators, and companies to manage passenger disruptions caused by flight cancellations, delays, or other unforeseen circumstances. The company also owns and operates taxi fleets and private hire vehicles in several European cities.
Our Methodology
To identify the 20 European cities with the highest cost of living, we used multiple cost-of-living indices and averaged them. The cost of living index compares prices for consumer goods (such as groceries, restaurants, transportation, and utilities) across cities. For the baseline, we used Numbeo’s cost of living for New York City. The cities are ranked in ascending order, with higher rankings indicating a higher cost of living.
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Now, let’s take a look at the cost of living in Europe by country.
20 Cities with the Highest Cost of Living in Europe
20. Hamburg, Germany
Cost of Living Index: 68.9
Germany’s northern port city, Hamburg, sits on the Elbe River, connected to the North Sea. Hamburg has the highest density of millionaires in Germany and is home to a large number of multinational organizations. One can expect higher rent in Hamburg compared to other German cities. The competitive housing market pushes average rental prices between €11 and €13 per square meter (excluding utilities).
19. Salzburg, Austria
Cost of Living Index: 70.1
The estimated monthly costs for a single person in Salzburg are $1,211.4 (€1,123.7), excluding rent. Despite being a small city, finding reasonably priced apartments can be challenging, and accommodations like hotels and hostels often book up days in advance, with prices rising during the summer months.
18. Dublin, Ireland
Cost of Living Index: 70.2
Ireland’s capital and largest city, Dublin, has a rich history and culture. The housing market, transportation expenses, and dining costs all add to Dublin’s high prices. Dublin is seen as having the highest rental costs in Europe, with an average of €32.8 per square meter per month.
17. Haarlem, Netherlands
Cost of Living Index: 71.4
Haarlem is a city outside of Amsterdam in northwest Netherlands. With a cost of living averaging $2465, Haarlem ranks among the world’s priciest cities, placing it in the top 8%.
16. Espoo, Finland
Cost of Living Index: 73.4
Espoo is located west of Finland’s capital city, Helsinki. It is the country’s second-largest city, with a population of nearly 297,000. Espoo’s cost of living averages around $1,907 per month, placing it in the top 22% of the most expensive cities worldwide. Although the median after-tax salary in Espoo is $3,099, it covers living expenses for only about 1.6 months. Espoo ranks 16th among the top 20 European cities with the highest cost of living.
15. Aarhus, Denmark
Cost of Living Index: 73.8
Located on Denmark’s eastern Jutland peninsula, Aarhus is the country’s second-largest city and a significant port. Aarhus is generally quite expensive, with rent prices approximately 20-30% higher than in other Danish cities. The average rental cost per square meter in Aarhus is DKK 110 per person.
14. Paris, France
Cost of Living Index: 74.2
Paris is the capital and most populous city in France. Living expenses in Paris, excluding rent, average around $1,185.70 (€1,100.50) per month. The cost of living in Paris is higher than 91% of cities in Western Europe and 87% of cities worldwide.
13. Copenhagen, Denmark
Cost of Living Index: 74.5
Copenhagen is Denmark’s capital city. The average living cost in Copenhagen is $2,399, placing it within the top 7% of the world’s most expensive cities. Denmark has one of the highest standards of living globally, which is reflected in its high costs, even by European standards.
12. Oslo, Norway
Cost of Living Index: 74.9
Oslo, Norway’s bustling capital, occupies a scenic location on the nation’s southern coast. Oslo is known for having some of the most expensive apartments and houses in Norway as of 2024. In March of this year, the average price for a residential property in the capital reached a staggering 6.4 million Norwegian kroner.
11. London, United Kingdom
Cost of Living Index: 78.1
London is the eleventh most expensive city in the world to live in. In addition, London has the eight most expensive average housing prices out of the 35 global cities. The high living costs in the UK are a result of labor shortages and additional taxes on households. For a single person, the average cost of living in London is over £3,644 per month.
10. Stavanger, Norway
Cost of Living Index: 79.2
Stavanger is a city in southwestern Norway. In this city, one can expect to spend around $1231.30 (or 13459.60 kr) per month on living expenses, excluding rent. The cost of living in Stavanger is 17% higher than the national average. Prices for basic necessities such as food, housing, and utilities are exorbitant. Stavanger is one of the top 10 cities with the highest cost of living in Europe.
9. Bergen, Norway
Cost of Living Index: 81.4
Bergen, located on Norway’s southwestern coast, has a high cost of living, which is typical of Norway’s major cities. While salaries in Bergen are relatively high, so are the living expenses. For a single person, the estimated monthly costs are $1,222.9 (13,608.3 kr), excluding rent. Bergen is among the top 10 most expensive cities in Europe.
8. Reykjavik, Iceland
Cost of Living Index: 83.8
Iceland’s costly capital, Reykjavik, is situated on the coast. The cost of living in Reykjavik is significantly higher than in many other places due to the small market size and reliance on imports. Expenses for food, housing, and transportation are notably high. A single person can expect to spend $1,293 monthly, excluding rent. Renting a typical 45 sqm furnished studio costs an additional 167,660 krona.
7. Trondheim, Norway
Cost of Living Index: 85.1
Trondheim, with a population of 195,000, ranks among Norway’s pricier cities. One can expect monthly living expenses of around $1,976, excluding rent. Renting a typical 45 sqm furnished studio adds an additional 167,000 krona per month. Trondheim is seventh on our list of the cities with the highest cost of living in Europe.
6. Zurich, Switzerland
Cost of Living Index: 101.5
Zurich, a global hub for banking and finance, sits at the top of Lake Zurich in northern Switzerland. A single person would need a net salary of 3,500 CHF per month to live reasonably in the city. Zurich is also one of the most expensive cities in Europe to rent.
5. Bern, Switzerland
Cost of Living Index: 101.9
Bern ranks fifth on our list of the 20 cities with the highest cost of living in Europe. The average monthly cost of living in Bern is around CHF 1,411 without rent, which is higher than many other cities in Switzerland and Europe.
4. Geneva, Switzerland
Cost of Living Index: 103.3
Geneva, situated on the southern shores of Lake Geneva in Switzerland, is known for its breathtaking scenery. Rent for a one-bedroom apartment in Geneva averages around $2,500 to $3500 per month. Despite consistently ranking among the world’s priciest cities, Geneva’s higher salaries and rewarding work contracts help mitigate the cost of living to some extent.
3. Lausanne, Switzerland
Cost of Living Index: 109.3
Lausanne is situated on the shores of Lake Geneva in Switzerland. For a single person, estimated monthly costs, excluding rent, in Lausanne amount to $1,777.3 (1,610.8Fr.). The monthly rents for 80% of the city’s properties fall between CHF 1,050 and CHF 3,010.
2. Basel, Switzerland
Cost of Living Index: 110.1
Basel, situated near the borders of France and Germany in Switzerland, surpasses London in terms of expenses. For a single person, estimated monthly costs in Basel amount to $1,780.4 (1,613.9Fr.), excluding rent. Basel is approximately 10.1% more expensive than New York. Basel is second on our list of the cities with the highest cost of living in Europe.
1. Lucerne, Switzerland
Cost of Living Index: 111.2
Lucerne is a small city in Switzerland and is situated amid snowcapped mountains on Lake Lucerne. The average monthly expenses for an individual in Lucerne amount to 1,653.6 Fr, excluding rent. Lucerne is 11.2% more expensive than New York. To maintain a reasonable standard of living and cover all expenses, one would need to spend at least 7,500.0Fr. per month in Lucerne.
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