In this article, we will list 30 cities with the highest cost of living. If you want to skip our discussion about the cost of living in the United States, go to 11 Cities With The Highest Cost of Living.
February 2024 was yet another reminder that the recent rise in the cost of living is sticky and stubborn. The Consumer Price Index (CPI) in the United States climbed by 3.2% on a year-on-year basis in a month. Year-on-year basis CPI recorded in the month of January was 3.1%. This shows that the inflation rose by 0.4% on a month-on-month basis from January 2024 to February 2024, which was slightly higher than the 0.3% rise between December 2023 and January 2024. Excluding volatile components such as food and energy prices, core inflation paints a better picture. It reached 3.8% annually in February, showing a minor decrease of 0.1% from January, not accounting for food and energy prices. These rising prices are affecting Americans negatively as the cost of living is increasing every day. Goods that cost $100 before the pandemic are now worth more than $119.
A survey by the Bank of America Corporation (NYSE:BAC) highlighted that more than two-thirds of employees feel that inflation is rising faster than their wages and salaries. Companies are also feeling the pressure of ongoing price hikes and many are not able to cope with it. Even tech giants like Microsoft Corporation (NASDAQ:MSFT) are taking steps to cut down costs. The company nearly doubled its budget for merit increases for certain employees in 2022. However, Microsoft Corporation (NASDAQ:MSFT) held off raising the salaries of full-time employees in 2023. For that year, Microsoft Corporation (NASDAQ:MSFT) employees only got bonuses and stock awards.
Intel Corporation (NASDAQ:INTC) also slashed employee pay in Feb last year after a low sales forecast and a loss of market share. This reduction of pay of Intel Corporation (NASDAQ:INTC) employees ranged between 5% to 25%, with the higher range of pay cuts reserved for higher executives, including the CEO. However, it is worth noting that these Intel Corporation (NASDAQ:INTC) pay cuts did not apply to hourly wage workers.
Unlike the companies mentioned above, some like the Bank of America Corporation (NYSE:BAC) and Amazon.com, Inc. (NASDAQ:AMZN) worked towards easing the cost of living crisis for their workers. Bank of America Corporation (NYSE:BAC) increased its minimum wage from $22 to $23 in September 2023 and announced to raise it further to $25 per hour by 2025.
In September 2023, Amazon.com, Inc. (NASDAQ:AMZN) raised the salaries of its warehouse workers to $20.5 per hour, up from 19. However, this is not the first time in the last ten years that the company has raised its minimum wage. In fact, in 2018, it raised the minimum wage of its workers to $15, which was double the federal wage rate at the time. Amazon.com, Inc. (NASDAQ:AMZN) has been quite active over the last few years in making cost-of-living adjustments for its employees to meet the challenges associated with inflation.
Since it is now clear that the current rise in consumer prices is sticky and stubborn, all eyes are now on the Federal Reserve. It is expected that the Fed will cut down interest rates this year but it had already said at the beginning of the year that it is in no hurry to do so. Inflation numbers are closely monitored by the Fed. It has been holding the Fed fund rate at a 23-year high to discourage spending and subdue high inflation. Currently, market predictions place a 70% chance of a rate cut by June 2024. This rate-cut decision by the Fed is anticipated by the whole world as interest rates in the United States affect the cost of living in the world.
With that backdrop, let’s look at the 30 cities with the highest cost of living.
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Methodology
To curate our list of the 30 cities with the highest cost of living we used cost of living indices by 3 sources. We selected the top 50 cities according to the cost of living from all three. For each city, we gave it points in reverse order. For example, if a city ranked first on one of the rankings, it got 50 points for that ranking. If a country ranked 50 for a particular ranking, it was given 1 point for that ranking. Then for each city, we totaled the scores and divided the sum by 3 to arrive at the Insider Monkey Cost of Living Index. The higher this score, the higher the cost of living in the city.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy you can benefit from the wisdom of hedge funds and corporate insiders.
30 – Canberra, Australia
Insider Monkey Score – 18.5
Canberra, Australia, is one of the cities with the highest cost of living. The cost of housing in the city is notably high, making it one of the most expensive capital cities in the world. The rising population in Canberra coupled with work opportunities has led to a surge in the prices of houses in the city.
29 – Lugano , Switzerland
Insider Monkey Score – 19.5
Lugano, Switzerland is among the top 5% of expensive cities in the world according to many experts. The average cost of living for a single person exceeds $2,500 per month, reflecting the city’s population for being costly.
28 – Reykjavik, Iceland
Insider Monkey Score – 19.5
Reykjavik, Iceland, is another capital city on our list of the 30 cities with the highest cost of living. The high cost of living in the city is reflected by the exorbitant rental prices. A one-bedroom apartment in Reykjavik can cost more than $1400 per month.
27 – Tampa, Florida, United States
Insider Monkey Score – 20
Although relatively affordable according to US standards, Tampa is still one of the most expensive cities in the world to live in. According to sources online, it is more expensive than 80% of cities in the world, with the median housing price per square foot of more than $300.
26 – Honolulu, Hawaii, United States
Insider Monkey Score – 21
Honolulu is 26th on our list of the 30 cities with the highest cost of living. Housing prices in the city are higher than 10% of the national average of the United States.
25 – Trondheim, Norway
Insider Monkey Score – 21
It costs more than $4,700 to meet the average expense of a family of four in Trondheim, Norway, excluding rent. The cost of living for a single person in the city exceeds $1,900.
24 – San Francisco, California, United States
Insider Monkey Score – 21.5
San Fransisco, California, is one of the most expensive cities even by US standards. Housing prices in the city are well above the national average, with the median price of a home exceeding $1.3 million.
23 – Sydney, Australia
Insider Monkey Score – 22.5
Sydney, Australia, is 23rd on our list of the cities with the highest cost of living. The estimated monthly cost for a family of four in the city exceeds $4,000.
22 – Bern, Switzerland
Insider Monkey Score – 23
Bern, Switzerland, is one of the most expensive cities in the world. The average monthly cost of living in Bern exceeds $1,500 without rent, with accommodation being the most significant expense
21 – Grand Cayman, Cayman Islands
Insider Monkey Score – 24
Grand Cayman is 21st on our list of the 30 cities with the highest cost of living. Its popularity as a tourist destination and an attractive option for expats pushes up the accommodation prices in the city.
20 – Copenhagen, Denmark
Insider Monkey Score – 25
A one-bedroom apartment in Copenhagen, Denmark, costs more than $1,300, making it one of the most expensive cities to live in. In addition, grocery prices in the city are relatively high, with a loaf of bread costing around $3 on average.
19 – Hamilton, Bermuda
Insider Monkey Score – 25
Hamilton, Bermuda, is 19th on our list of the 30 cities with the highest cost of living. According to Numbeo, the city ranks highest according to cost of living, surpassing Swiss cities like Zurich, which ranks much higher on our list.
18 – Sacramento, California, United States
Insider Monkey Score – 27
Sacramento is one of the most expensive cities in California and the United States. Housing costs in the city are relatively expensive with a one-bedroom apartment close to the city center costing more than $2,300 per month.
17 – Chicago, Illinois, United States
Insider Monkey Score – 27.5
Chicago, Illinois, is 17th on our list of the 30 cities with the highest cost of living. The estimated monthly cost for a family of four in the city exceeds $4,500 without rent.
16 – Denver, Colorado, United States
Insider Monkey Score – 28
The cost of living in Denver, Colorado, is considerably higher than in other US cities. The estimated monthly cost for a family of four is around $6,400 without rent. In addition, the total monthly cost for a single person in Denver, Colorado is more than $3,700.
15 – Portland, Oregon, United States
Insider Monkey Score – 28
Portland is the most expensive city in Oregon and is one of the cities with the highest cost of living in the United States. The high housing prices in the city make up for a substantial portion of resident’s expenses.
14 – Atlanta, Georgia, United States
Insider Monkey Score – 29.5
Atlanta, Georgia, is 14th on our list of the 30 cities with the highest cost of living. According to sources online, the cost of living for a family of four in the city exceeds $4,800 without rent.
13 – Miami, Florida, United States
Insider Monkey Score – 31.5
Miami tops the list of the most expensive cities in Florida. The cost of living in the city is significantly higher than the national average of the US, with the average rent for a two-bedroom apartment exceeding $3,000.
12 – Singapore
Insider Monkey Score – 33.5
Singapore is 12th on our list of the 30 cities with the highest cost of living. It is a city-state which is why it had made it to our list.
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Disclosure: none. 30 Cities With The Highest Cost of Living is originally published on Insider Monkey.