Top 10 Most Expensive Cities to Live In

Living in a major global city comes with many advantages: world-class amenities, cultural opportunities, career prospects, and vibrant communities. However, these benefits often come with a significant price tag. The world's most expensive cities demand substantial financial resources for even basic necessities, making them challenging places to live for those without high incomes. While these cities offer exceptional quality of life and opportunities, understanding their cost structures is essential for anyone considering relocation or travel.

The cost of living in these cities is typically measured using a cost of living index, which compares expenses across multiple categories—housing, food, transportation, healthcare, and entertainment—against a baseline city. New York City is commonly used as the reference point with an index of 100, meaning cities with higher indices are more expensive. As of November 2025, several cities have surpassed even New York's high cost of living, creating a tier of ultra-expensive urban centers that require exceptional financial resources.

What makes these cities so expensive? Factors include strong local economies with high wages, limited housing supply, premium real estate markets, strong currencies, high-quality public services, and strict regulations that maintain premium standards. While the high costs can be daunting, many of these cities also offer corresponding benefits: excellent infrastructure, safety, healthcare systems, educational opportunities, and overall quality of life that justify the premium for those who can afford it.

Methodology

This ranking is based on the cost of living index as of November 2025, using data from Numbeo and other major cost of living surveys. The index considers multiple factors:

• Housing costs: Rent and property prices, including both city center and suburban areas
• Food expenses: Groceries, dining out, and basic food items
• Transportation: Public transit, fuel, vehicle costs, and commuting expenses
• Utilities: Electricity, water, heating, internet, and phone services
• Healthcare: Medical services, insurance, and pharmaceutical costs
• Education: School fees and educational expenses
• Entertainment and lifestyle: Recreation, dining, cultural activities, and personal care

The ranking uses New York City as the baseline (index of 100), with cities scoring above 100 being more expensive. This comprehensive approach provides a realistic picture of what it costs to maintain a standard lifestyle in each city, accounting for both necessities and discretionary spending.

List of Most Expensive Cities

10. Boston, United States - Historic Excellence at a Premium

Boston combines rich American history with a world-class education and healthcare sector, creating a high-cost environment that reflects its status as a major economic and cultural hub. The city's cost of living index of 83.7 places it among the world's most expensive cities, driven by premium real estate prices, high-quality services, and a strong economy anchored by universities, hospitals, and technology companies.

The city's housing market is particularly challenging, with median home prices well above the national average and rental costs that require significant income. Boston's compact geography and limited land for development contribute to high property values, while the presence of prestigious institutions like Harvard and MIT attracts high-income professionals who can afford premium housing. The city's living expenses extend beyond housing, with transportation costs, dining expenses, and entertainment prices all contributing to the overall premium.

What makes Boston expensive is its combination of historical charm, educational excellence, and economic opportunity. The city offers excellent public services, world-renowned healthcare facilities, and a vibrant cultural scene, but these amenities come with a price tag that reflects the high demand to live in this prestigious New England city.

9. Reykjavik, Iceland - Nordic Premium in a Remote Paradise

Reykjavik stands out as one of the world's most expensive cities despite its relatively small size, with a cost of living index of 83.7. Iceland's capital reflects the high costs typical of Nordic countries, where strong social safety nets, high wages, and premium quality standards create an expensive but high-quality living environment.

The city's isolation and small population contribute to its high costs, as most goods must be imported, leading to expensive grocery prices, consumer products, and services. Iceland's strong currency and high wages support these prices, but they also mean that visitors and new residents face significant living expenses. Housing costs are substantial, though the city's compact size makes it more manageable than sprawling metropolises. The cost of utilities and transportation expenses also reflect the challenges of island economics.

What makes Reykjavik expensive is its combination of Nordic social model benefits—excellent healthcare, education, and infrastructure—with the logistical challenges of a remote island nation. The city offers a unique lifestyle with stunning natural beauty, safety, and a strong sense of community, but these advantages come with costs that reflect Iceland's premium economic model and geographic isolation.

8. Honolulu, United States - Island Paradise at a Price

Honolulu represents the premium cost of living in paradise, with a cost of living index of 86.9 that reflects both the city's desirability and its geographic challenges. As the capital of Hawaii, Honolulu offers a unique tropical lifestyle, but the costs of island living—imported goods, limited land, and high demand—create one of America's most expensive urban environments.

The city's housing market is particularly challenging, with median home prices among the highest in the United States and rental costs that require substantial income. The limited land available for development, combined with strict building regulations and high demand from both residents and vacation property buyers, keeps real estate prices elevated. Grocery costs and consumer goods are expensive due to shipping costs, while the tourism industry drives up dining prices and entertainment expenses. The cost of utilities and transportation also reflect the premium associated with island living.

What makes Honolulu expensive is its combination of natural beauty, desirable climate, and island economics. The city offers a unique lifestyle with access to beaches, outdoor recreation, and a relaxed atmosphere, but the costs of maintaining this paradise—from housing to everyday goods—reflect the premium that people are willing to pay for island living in one of the world's most beautiful locations.

7. San Francisco, United States - Tech Boom Premium

San Francisco has long been one of America's most expensive cities, and with a cost of living index of 90.5, it remains among the world's priciest urban centers. The city's transformation into a global technology hub has driven housing costs to extraordinary heights, while its compact geography and strict development regulations limit supply, creating a perfect storm of high demand and constrained availability.

The city's housing crisis is legendary, with median home prices and rental costs that rank among the highest globally. The concentration of high-paying tech jobs has created a wealth effect that drives up prices across the board, from real estate to dining expenses to services. San Francisco's small geographic footprint, surrounded by water on three sides, further constrains development, while the city's progressive policies and high quality of life attract residents willing to pay premium prices. Transportation costs and living expenses in general reflect the city's status as a premium destination.

What makes San Francisco expensive is its combination of economic opportunity, natural beauty, cultural vibrancy, and geographic constraints. The city offers world-class dining, arts, and entertainment, along with proximity to Silicon Valley's job market, but these advantages come with costs that reflect the intense competition to live in this desirable location. The high salaries in the tech industry help offset these costs for many residents, but the city remains challenging for those in lower-paying sectors.

6. Bern, Switzerland - Capital City Premium

Bern, Switzerland's capital, maintains the high cost of living typical of Swiss cities, with a cost of living index of 95.0. While slightly more affordable than other major Swiss cities, Bern still ranks among the world's most expensive urban centers, reflecting Switzerland's strong economy, high wages, and premium quality standards.

The city's medieval charm and UNESCO World Heritage status contribute to its desirability, while its role as the federal capital ensures a stable economy with government employment and international organizations. Housing costs are substantial, though somewhat lower than in Zurich or Geneva, while the city's excellent public services, healthcare, and infrastructure come with corresponding price tags. The real estate market reflects the city's political importance, with property values that remain high despite being more affordable than other Swiss cities.

What makes Bern expensive is its combination of historical significance, political importance, and Swiss economic model. The city offers excellent quality of life, safety, and public services, but these benefits reflect Switzerland's high-wage, high-cost economic structure. Living expenses including transportation costs, dining expenses, and utility costs all contribute to the premium. Residents benefit from correspondingly high salaries and excellent social services, but the overall cost of living remains among the world's highest.

5. Basel, Switzerland - Cultural Hub at a Premium

Basel, located at the intersection of Switzerland, France, and Germany, combines cultural richness with high costs, achieving a cost of living index of 98.0. The city is renowned for its art scene, pharmaceutical industry, and international character, but these advantages come with the premium prices typical of Swiss urban centers.

The city's housing market reflects its desirability, with real estate prices that rank among Europe's highest. Basel's strong economy, driven by pharmaceutical companies and international trade, supports high wages that help offset living expenses, but the overall cost structure remains challenging. The city's excellent public transportation, healthcare, and education systems come with corresponding costs, while its location makes it attractive to international professionals. Rental costs and property values reflect the city's status as a major economic hub, while dining expenses and entertainment prices contribute to the high cost of living.

What makes Basel expensive is its combination of economic strength, cultural significance, and Swiss quality standards. The city offers world-class museums, excellent infrastructure, and a high quality of life, but these benefits reflect Switzerland's premium economic model. The presence of major international companies and the city's role as a cultural and economic hub drive demand and prices upward, making it one of Europe's most expensive cities.

4. New York, United States - The Global Baseline

New York City serves as the baseline for cost of living comparisons with an index of 100.0, making it the reference point against which other cities are measured. Despite this baseline status, New York remains one of the world's most expensive cities, with costs that challenge even high-income residents across housing, food, transportation, and entertainment.

The city's housing market is notoriously expensive, with Manhattan real estate prices among the highest globally and rental costs that require substantial income. New York's status as a global financial center, cultural, and media capital creates intense demand for limited space, while the city's extensive public services, infrastructure, and amenities come with corresponding costs. Everything from grocery prices to dining expenses to entertainment prices carries premium prices that reflect the city's economic power and desirability. The cost of utilities and transportation costs also contribute significantly to the overall living expenses.

What makes New York expensive is its combination of economic opportunity, cultural richness, and geographic constraints. The city offers unparalleled career prospects, world-class arts and entertainment, diverse neighborhoods, and extensive public services, but these advantages come with costs that reflect the intense competition to live in this global capital. High salaries in finance, technology, and other sectors help offset expenses, but the city remains challenging for those with moderate incomes. For those interested in understanding how economic prosperity relates to living costs, our article on richest countries by GDP provides additional context.

3. Geneva, Switzerland - International Hub Premium

Geneva ranks among the world's most expensive cities with a cost of living index of 100.7, slightly exceeding New York's baseline. The city's role as a global center for diplomacy, finance, and international organizations creates a unique economic environment where high costs reflect both Swiss quality standards and international demand.

The city's housing market is extremely challenging, with rental costs and property prices that rank among the world's highest. Geneva's small size, limited land for development, and strict building regulations constrain supply, while the presence of numerous international organizations, banks, and multinational corporations creates strong demand from high-income professionals. The city's excellent public services, healthcare, and education systems come with corresponding costs, while its location on Lake Geneva adds to its desirability. Real estate prices reflect the premium associated with lakefront locations, while living expenses including transportation costs, dining expenses, and utility costs all contribute to the high cost of living.

What makes Geneva expensive is its combination of international significance, Swiss economic model, and geographic constraints. The city offers a unique lifestyle with access to natural beauty, excellent infrastructure, and a cosmopolitan atmosphere, but these advantages come with costs that reflect both Switzerland's premium economic structure and the city's role as a global financial center. High salaries in international organizations and finance help offset expenses, but the overall cost of living remains among the world's highest, making it one of the most challenging cities for budget-conscious residents.

2. Lausanne, Switzerland - Lakefront Luxury

Lausanne achieves a cost of living index of 100.9, making it the second most expensive city in the world. Located on the shores of Lake Geneva, the city combines natural beauty with economic strength, creating a premium living environment that reflects both Swiss quality standards and the desirability of its location.

The city's housing market is extremely expensive, with real estate prices driven by limited supply, high demand, and the premium associated with lakefront locations. Lausanne's strong economy, anchored by the International Olympic Committee and numerous multinational companies, supports high wages, but the overall cost structure remains challenging. The city's excellent public services, healthcare, and education systems come with corresponding costs, while its cultural scene and natural setting add to its appeal. Rental costs and property values reflect the city's desirability, while living expenses including transportation costs, dining expenses, and entertainment prices all contribute to the premium cost of living.

What makes Lausanne expensive is its combination of economic strength, natural beauty, and Swiss quality standards. The city offers a high quality of life with excellent infrastructure, safety, and public services, but these benefits reflect Switzerland's premium economic model. The presence of international organizations and the city's role as a cultural and economic hub drive demand and prices upward, creating one of the world's most expensive urban environments where daily expenses require substantial financial resources.

1. Zurich, Switzerland - The World's Most Expensive City

Zurich claims the title of the world's most expensive city with a cost of living index of 103.8, making it nearly 4% more expensive than New York City. Switzerland's largest city combines economic power, natural beauty, and premium quality standards to create an urban environment where costs reach extraordinary heights across virtually every category of expenditure.

The city's housing market is among the world's most challenging, with rental costs and property prices that require exceptional financial resources. Zurich's status as a global financial center, combined with its limited geography, strict development regulations, and high quality of life, creates intense demand for limited space. The city's excellent public services, healthcare, education, and infrastructure come with corresponding costs, while its location on Lake Zurich and proximity to the Alps adds to its desirability. Real estate prices reflect the city's economic power, while living expenses including transportation costs, dining expenses, grocery prices, and utility costs all contribute to the world's highest cost of living.

What makes Zurich expensive is its combination of economic strength, geographic constraints, and Swiss quality standards. The city offers unparalleled career opportunities in finance and technology, world-class infrastructure, safety, and natural beauty, but these advantages come with costs that reflect both Switzerland's premium economic model and the city's role as a global economic hub. High salaries help offset expenses for many residents, but the overall cost of living remains the highest in the world, creating an environment where financial resources must match the city's premium lifestyle. For those interested in exploring other major urban centers, our article on most populous cities provides insights into the world's largest metropolitan areas.

Summary of the Top 10 Most Expensive Cities

Conclusion

The world's most expensive cities represent a fascinating intersection of economic opportunity, quality of life, and geographic constraints. These urban centers command premium prices not just for housing, but for virtually every aspect of daily life, from groceries to transportation to entertainment. What makes them expensive is often what makes them desirable: strong economies, excellent public services, safety, cultural richness, and natural beauty. For those seeking the best places to live, these cities offer exceptional opportunities, though they require careful financial planning. Those interested in understanding the relationship between cost and quality may also find our article on countries with the best quality of life insightful.

Switzerland dominates the rankings, with five cities in the top 10, reflecting the country's high-wage, high-cost economic model. Swiss cities offer corresponding benefits—excellent infrastructure, healthcare, education, and social services—but these come with price tags that reflect the premium quality standards maintained throughout the country. The strong Swiss franc and limited geography further contribute to these high costs.

American cities also feature prominently, with New York serving as the global baseline and San Francisco, Honolulu, and Boston representing different aspects of expensive urban living. These cities offer economic opportunity, cultural vibrancy, and unique lifestyles, but their costs reflect intense demand, geographic constraints, and the premium associated with living in major economic and cultural centers.

The high costs in these cities are not arbitrary; they reflect real factors including limited housing supply, strong economies with high wages, premium quality standards, and intense demand from residents and businesses. For those who can afford them, these cities offer unparalleled opportunities, amenities, and quality of life. However, they also present significant challenges for those with moderate incomes, requiring careful financial planning and lifestyle choices.

Understanding these cost structures is essential for anyone considering a move to one of these cities, whether for career opportunities, lifestyle preferences, or personal reasons. The key is recognizing that high costs often come with corresponding benefits, and that success in these cities requires not just high income, but also smart financial management and realistic expectations about what's affordable.

As global economic conditions continue to evolve, these rankings will shift, with currency fluctuations, economic changes, and policy decisions affecting relative costs. However, the fundamental factors that make cities expensive—strong economies, limited supply, high demand, and premium quality standards—are likely to persist, ensuring that these urban centers remain among the world's most challenging and rewarding places to live.