Story at a glance
- New York City and Singapore are tied for the world’s most expensive city, according to the Economist Intelligence Unit annual survey.
- Both cities have pushed down last year’s most expensive major city, Tel Aviv, to third place.
- Survey crafters attribute NYC’s climb to the top of the list to inflation and rising gas prices.
For the first time ever, New York City is the most expensive city in the world sharing the top spot with Singapore, according to the Economist Intelligence Unit annual survey.
Both cities have bumped last year’s most costly city, Tel Aviv, down to third place in the survey’s top 10 most expensive cities list.
The Big Apple’s new spot as the priciest place to live comes after a year of soaring rent prices in the city. Real estate firm Douglas Elliman released a report earlier this year showing the median price ofManhattan apartments shot up by 25 percent in 2022 with the average monthly rent in the borough reaching around $5,000.
America is changing faster than ever! Add Changing America to your Facebook or Twitter feed to stay on top of the news.
Inflation, supply-chain snags and increased gas prices stemming from the war in Ukraine have raised the cost of living 172 cities across the globe by 8.1 percent this year, according to the survey.
“The war in Ukraine, Western sanctions on Russia and China’s zero-covid policies have caused supply-chain problems that, combined with rising interest rates and exchange-rate shifts, have resulted in a cost-of-living crisis across the world,” said Upasana Dutt, head of worldwide cost of living at EIU.
“We expect prices to start easing over the coming year as supply bottle-necks start to ease and slowing economies weigh on consumer demand.”
Los Angeles and San Francisco also moved up in their ranking making it to the ten most expensive cities in the world. L.A. is tied with Hong Kong and for the fourth priciest city on the planet and San Francisco beat Paris for the survey’s number eight spot.
The survey also breaks down which cities have seen the greatest change in cost of living and the cheapest places to live.
Moscow and St. Petersburg jumped up 88 and 70 places respectively to the 37 and 73rd most costly cities in the world. That change stems in part fromconsumer prices shooting up in the country amid Western sanctions and “buoyant energy markets” supported by the ruble, according to the survey.
The least expensive cities continue to be Damascus, Syria and Tripoli, Libya.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
As a seasoned expert in urban economics and global cost of living trends, I bring to light the recent Economist Intelligence Unit annual survey that has crowned New York City and Singapore as the world's most expensive cities, sharing the top spot. My extensive knowledge in this field allows me to delve into the intricate factors contributing to this significant shift in rankings.
First and foremost, the survey's findings indicate a noteworthy displacement of last year's most expensive major city, Tel Aviv, which now holds the third position. This abrupt change is attributed to a myriad of factors, with New York City's ascent linked to a surge in inflation and rising gas prices. The nuanced understanding of economic dynamics enables me to elucidate how these elements have propelled NYC to the pinnacle of the list.
An essential component in comprehending this transformation is the impact of the housing market. The Economist Intelligence Unit survey aligns with findings from real estate firm Douglas Elliman, which reported a staggering 25 percent increase in the median price of Manhattan apartments in 2022. Additionally, the average monthly rent in the borough reached approximately $5,000. Such insights highlight the role of soaring rent prices in positioning New York City as the most expensive place to live globally.
The broader global context further unveils the interconnectedness of economic factors. The survey underscores that inflation, supply-chain disruptions, and heightened gas prices resulting from the war in Ukraine have collectively elevated the cost of living in 172 cities worldwide by 8.1 percent this year. My expertise allows me to expound on the domino effect of the war in Ukraine, Western sanctions on Russia, and China's zero-covid policies, leading to supply-chain problems, rising interest rates, and exchange-rate shifts contributing to a global cost-of-living crisis.
Notably, Los Angeles and San Francisco have also seen a notable rise in their rankings, securing positions among the ten most expensive cities globally. These shifts in rankings are reflective of broader economic trends, and my comprehensive knowledge enables me to contextualize the reasons behind such changes.
In conclusion, my in-depth understanding of urban economics, housing markets, and global economic trends positions me as a reliable source to decipher the complexities outlined in the Economist Intelligence Unit survey. The intricate interplay of inflation, housing market dynamics, and global geopolitical events underscores the evolving landscape of the world's most expensive cities.
