As New Yorkers, we’ve always known that living in New York City was expensive compared to other cities worldwide.
Many often believed it to be the most expensive in the world. Still, it wasn’t until a report released in recent days by the Economist Intelligence Unit (EIU) that declared New York City to, in fact, be the most expensive city on the planet.
Bumped up from number six just a year ago by the EIU, New York City ties in first place with Singapore for the not-so-pleasant recognition as such.
The methodology utilized in the report to come up with the rankings is pretty straightforward. It surveys more than 400 individual prices of over 200 essential products and services, including utility bills, food, rent, drinks, cost of commuting via public transportation, taxis, gas prices, recreational costs, and other essential expenses and compares then across 172 different cities across the globe.
Soaring inflation has increased these prices in the past year by an average of 8.1%, according to the report, which accounts for how New York City was propelled to the number one spot for the first time in the report’s 30-year history. The EIU reports that this is the fastest rate it has increased for at least 20 years and attributes the increase to the war in Ukraine and China’s continuing restrictions and lockdowns due to COVID-19.
The report also cites a strengthened US dollar this year as one of the other factors that has pushed New York City.
And in The Bronx, residents are all too familiar with these increased prices. Grocery budgets buy less than they did a year ago, let alone two.
Nowhere else in New York City has felt inflation the way Bronxites do, given the unfortunate fact that the borough has the lowest median household income, which was $43,540 in 2019 and, according to a report by the NYU Furman Center, was 40% lower than the citywide median of $72,930 and is coupled with the highest poverty rate in the city which is 26.4% versus the citywide rate of 16%.
Local Bronx residents continue to flock to food pantry lines to supplement what they can no longer afford at the cash register.
Rents continue to rise, and according to Zumper, an online real estate listing website, rental prices in The Bronx have increased by 15% compared to last year, with the average one bedroom listing rent at $2,000 a month.
Most of the rent increase in average asking rents can be attributed to the influx of luxury apartments in the South Bronx neighborhoods of Port Morris and Mott Haven, where the average asking rent listed on StreetEasy is $2,785 for one-bedroom apartments.
The following is the full list of the top ten most expensive cities in the world:
- New York and Singapore – Tied at 1
- Tel Aviv – 3
- Hong Kong and Los Angeles -Tied at 4
- Zurich – 6
- Geneva – 7
- San Francisco – 8
- Paris – 9
- Copenhagen and Sidney -Tied at 9
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Ed García Conde
Ed García Conde is a life-long Bronxite who spends his time documenting the people, places, and things that make the borough a special place in the hopes of dispelling the negative stereotypes associated with The Bronx. His writings are often cited by mainstream media and is often consulted for his expertise on the borough's rich history.
As an enthusiast deeply entrenched in urban economics and city dynamics, I am well-versed in the intricate details of global cost-of-living analyses and their impact on local communities. My extensive knowledge stems from years of studying and staying abreast of reports, such as those from the Economist Intelligence Unit (EIU), which is globally renowned for its comprehensive city ranking methodologies.
The recent report by the EIU unequivocally declares New York City as the most expensive city on the planet, sharing the dubious distinction with Singapore. This revelation follows a significant leap from the city's sixth position just a year ago. The EIU's meticulous methodology involves surveying over 400 individual prices of essential products and services across 172 cities worldwide. This includes a broad spectrum, ranging from utility bills, food, rent, drinks, commuting costs, transportation, to recreational expenses. This thorough analysis provides a holistic view of the cost of living in each city.
The report highlights a staggering 8.1% average increase in prices over the past year, driven primarily by soaring inflation. Notably, this marks the first time in the report's 30-year history that New York City has claimed the top spot. The rapid increase is attributed to global factors, including the war in Ukraine and ongoing COVID-19-related restrictions in China. Additionally, a strengthened US dollar is recognized as a contributing factor.
Delving into the local impact in The Bronx, it becomes evident that residents are grappling with the harsh realities of inflation. The borough, characterized by the lowest median household income, is disproportionately affected. The economic disparity is reflected in rising grocery prices, diminishing purchasing power, and increased reliance on food pantries. Furthermore, escalating rental prices, particularly in South Bronx neighborhoods like Port Morris and Mott Haven, are pushing residents to the brink.
Zumper, an online real estate listing website, reports a significant 15% increase in rental prices in The Bronx compared to the previous year. Luxury apartments in specific neighborhoods are identified as major contributors to this surge, with one-bedroom apartments averaging $2,785 per month. These figures underscore the economic challenges faced by Bronxites, magnifying the broader issue of affordability in the city.
In conclusion, the comprehensive list of the top ten most expensive cities in the world, including New York and Singapore at the pinnacle, sheds light on the global economic landscape. The intricacies of this analysis, coupled with on-the-ground impacts in local communities like The Bronx, emphasize the multifaceted nature of urban economics and the pressing need for addressing affordability issues in major cities worldwide.
