Which US Cities Are The Most Expensive To Live In?

The Worldwide Cost of Living index, released annually by the Economist Intelligence Unit (EIU), revealed on Wednesday the world’s most expensive places to live, but only two cities in the U.S. made the cut.

The two U.S. cities on the list were New York City, which came in at No. 6, and Los Angeles, which came in at No. 9. The EIU reviewed 173 cities, 40 more than the year prior.

As for reasons why certain cities ranked where they did, the most expensive places to live are typically determined by a number of factors, including population and economic conditions.

This year, the COVID-19 pandemic made the global economy unpredictable, with different places recovering from the first lockdowns with varying degrees of success, and global supply chain issues also complicating matters.

The pandemic has “disrupted the supply of goods, leading to shortages and higher prices. We can clearly see the impact in this year’s index, with the rise in petrol prices particularly stark.” said Upasana Dutt, head of worldwide cost of living at EIU.

COVID-19's spread has led to a rise in inflation, particularly in the U.S., and decimated economies around the world, which are also threatened by the anticipation of the Omicron variant of the virus.

The top 10 most expensive cities on the list also included Tel Aviv (No. 1), Paris and Singapore (tied at No. 2), Zurich (No. 4), Hong Kong (No. 5), Geneva (No. 7), Copenhagen (No. 8) and Osaka, Japan (No. 10).

The other cities that landed on the list were: Oslo, Norway; Seoul, South Korea; Tokyo; Vienna; Sydney; Melbourne, Australia; Helsinki; London; Dublin; Frankfurt, Germany; and Shanghai.

The EIU listed Damascus, Syria, as the cheapest city to live in.

Dutt pointed out “not all cities saw price increases. Many of the cities towards the bottom of our rankings saw prices stagnate or even fall, partly because their currencies weakened against the U.S. dollar.”

“Over the coming year, we expect to see the cost of living rise further in many cities as wages increase in many sectors. However, we are also expecting central banks to raise interest rates, cautiously, to stem inflation. So, the price increases should start to moderate from this year’s level,” Dutt concluded.