Top 20 Most Expensive Cities in the World 2025: A Comprehensive Cost of Living Analysis

The global cost of living rankings as of April 2025 reflects economic divergence, as a result of a confluence of factors that make certain cities notably more expensive. Using New York City as the baseline with an index of 100, the top 20 most expensive cities span from the elite streets of Monaco to the bustling avenues of Sydney. Each city’s cost of living stems from unique economic, social, and geographic factors that underlay global urban living.

Monaco: A Haven for the Ultra-Wealthy

Topping the list with an index of 136.5, Monaco is home to an affluent population. The principality’s limited landmass and its status as a tax haven drive up real estate costs. A lack of income tax attracts high-net-worth individuals, who further inflate prices for goods and services. For prospective residents, Monaco’s allure comes with a staggering price tag, making it inaccessible for most without considerable financial resources.

Hong Kong and Singapore: Asia’s Economic Powerhouses

Hong Kong (116.1) and Singapore (115.8) rank second and third, epitomising high-density urban living. Hong Kong faces space constraints, compounded by geopolitical uncertainties that heighten demand for limited resources. Singapore’s rigorous urban planning ensures efficiency but escalates housing costs also due to limited space. For expatriates, these cities offer unparalleled economic opportunities but at the expense of steep housing and transport costs.

The United States: Tech Hubs and Urban Giants

The United States dominates the list of the highest cost of living cities with 7 of the top 20 most expensive cities in the world. San Francisco (112.8), Manhattan (108), San Jose (104.1), and Honolulu (103.4) are all in the top 10. San Francisco and San Jose, bolstered by Silicon Valley’s tech dominance, grapple with surging housing demand amidst limited supply. Manhattan, the epitome of cosmopolitan allure, suffers from exorbitant rents and high service costs. Honolulu’s geographic isolation escalates import costs, influencing everything from groceries to fuel. For potential movers, these cities demand substantial incomes to match their high living standards.

Swiss Precision: Zurich and Geneva

Switzerland’s Zurich (112.6) and Geneva (104.7) exemplify stability and high living standards. Their strong currencies, high wages, and robust public services translate into elevated living costs. Zurich’s financial hub status and Geneva’s international organisations draw an affluent workforce, perpetuating a cycle of high prices. Those relocating here should anticipate significant housing expenses despite the cities’ exceptional quality of life.

The Caribbean: George Town and Saint George’s

George Town in the Cayman Islands (101.5) and Saint George’s in Grenada (101.3) reflect the Caribbean’s economic dichotomy. Both rely heavily on imports and tourism, inflating costs. George Town’s financial services sector attracts wealthy expatriates, raising local prices. Saint George’s, while smaller, still sees elevated costs due to its reliance on external goods. These destinations are ideal for affluent retirees but challenging for middle-income professionals.

Sydney and London: Western Powerhouses

London (97.2) and Sydney (95.9) offer world-class opportunities but at significant costs. London, faces high transport and accommodation costs, driven by its global city status. For newcomers, these cities promise cultural and professional enrichment, albeit at a premium. Sydney’s property market, influenced by foreign investment and limited supply, pushes housing prices upward.

Copenhagen: European Exclusivity

Outside of Switzerland, Copenhagen (96.5) is the only other European city in the top 20. European efficiency with high taxes balanced by exemplary public services, Copenhagen’s social welfare system ensures a strong safety net, and is attractive for the quality of life, though living costs remain formidable.

Jerusalem and Hamilton New to Top 20

Rounding out the top 20 list is Hamilton in Bermuda (95.6). New to the top 20 is Jerusalem (97.3). Hamilton is expensive due to the reliance on imports, high wages, and limited housing supply. Bermuda imports the majority of its goods, leading to elevated prices due to shipping costs and import duties. The island's high average income levels and living standards drive up the cost of services and housing. The scarcity of land restricts housing availability, inflating property prices and rents. Jerusalem's high cost of living is influenced by housing demand, economic and political factors. Demand for housing is high, leading to increased property values and rents. House prices have risen almost 20% since 2022. Regional economic conditions and political complexities have also impacted prices of goods and services.

Implications for Relocation

For anyone considering moving to these cities, the cost of living index serves as a cautionary guide. High housing costs, driven by demand and scarcity, are universal among these urban centres. Additionally, cities like Monaco, Zurich, and San Francisco necessitate high incomes to maintain comparable living standards. Conversely, cities such as Sydney and London may offer slightly more affordability but still require careful financial planning.

Ultimately, these rankings reflect the global economy’s complex interplay of wealth, opportunity, and scarcity. While these cities promise unparalleled career and lifestyle opportunities, the cost of admission is steep, demanding a clear-eyed assessment of financial and personal priorities.

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