2026 City Cost of Living - Top 20 Most Expensive Cities in the World

Xpatulator’s 2026 top 20 global city rankings show that the highest cost locations for international professionals sit where housing is scarce, wages and services are priced at a premium, and currencies remain firm when converted into United States dollars. New York City is set to 100 as the reference point, so each index indicates the relative cost for the typical expatriate consumption basket.

Monaco leads at 140.3 because land constraints are structural, planning limits are tight, and demand is persistently international. Zurich at 117.3 and Geneva at 109.2 remain expensive because Switzerland combines high labour costs with high prices for housing, healthcare, dining, and paid household services. Norway’s Oslo at 103.3 and Denmark’s Copenhagen at 101.6 illustrate the same dynamic, where high incomes translate into high pricing for labour intensive services and everyday convenience. London at 101.3 is driven primarily by housing and private services, with marked variation by neighbourhood and commuting pattern.

Hong Kong in China Hong Kong at 122.4 remains a housing led market, where limited space and premium residential demand drive rents, while the linked exchange rate system keeps the Hong Kong dollar within a defined band against the United States dollar and reduces currency driven volatility in the ranking. Singapore at 117.7 is shaped by housing costs and by structural policies that raise specific baskets, notably private transport, where the certificate of entitlement system adds a significant cost layer for car ownership. Shanghai at 97.7 sits below New York City overall, but costs can rise quickly for expatriates who choose premium accommodation, imported groceries, and international schooling.

The United States cluster is led by Manhattan at 115.6, San Jose at 114.1, and San Francisco at 112.8, which is consistent with expensive housing markets, high professional service costs, and strong demand from high earning sectors. Recent reporting continues to show material rent pressure in New York City, reinforcing why housing typically dominates the expatriate cost stack in these markets. Boston at 99.9 and Seattle at 98.4 sit close to New York City because housing and paid services remain expensive even when some other baskets are more manageable. Honolulu at 98.6 adds an import and logistics premium that can lift prices for food and household goods relative to mainland cities.

Sydney at 100.7 sits just above New York City, reflecting the role of housing and childcare costs in a global lifestyle city. Nassau in the Bahamas at 99.0 and George Town in the Cayman Islands at 97.5 show how island economies can price high because imports, limited housing stock, and a smaller retail base raise the cost of many everyday items, while services are often priced for an international client base.

Exchange rates help explain year on year movement in rankings, particularly where local inflation is moderating but the currency strengthens against the United States dollar. The European Central Bank’s reference rates show the euro trading around 1.17 United States dollars in late January 2026, which tends to lift euro denominated living costs when expressed in United States dollars. Hong Kong’s currency system dampens this effect by design. Switzerland’s currency has also been discussed as structurally strong, which can raise the United States dollar converted cost base for Zurich and Geneva even when domestic inflation is low.

Inflation remains the second driver. Xpatulator publishes a regularly updated international inflation view intended to help users link consumer price inflation to cost of living outcomes across countries. For expatriates, the practical issue is that the baskets that matter most, notably housing, schooling, healthcare, and paid services, often behave differently from headline consumer price inflation, and can remain sticky even when overall inflation eases.

Current affairs and security conditions can raise costs through insurance, security, and supply chain disruption. Jerusalem at 98.4 is the highest ranked city in the Middle East list and is influenced by a regional environment where periodic escalation can affect risk pricing and business confidence. Shipping disruption and higher war risk insurance in key maritime corridors can also feed into import costs, which is particularly relevant for island markets and import reliant cities.

For expatriates and global mobility specialists, the core implication is that headline salary comparisons are unreliable. A move from a mid cost city to Monaco, Hong Kong, Singapore, Zurich, Manhattan, or San Jose can reduce salary purchasing power materially unless the package recognises host housing costs and the price of paid services. A disciplined comparison helps quantify post housing disposable income, supports realistic decisions on accommodation and commuting, and reduces the risk of funding day to day costs from savings. Xpatulator’s Salary Purchasing Power Parity Calculator supports this approach by converting pay into comparable purchasing power and modelling the cost baskets that international professionals typically fund from salary.

Use Xpatulator’s Cost of Living Calculators and Tools for informed decision making about the cost of living and the salary, allowance, or assignment package required to maintain the current standard of living.