Most Expensive Cities

Every year various institutions come up with lists of the most expensive cities in the world. Some of these firms are CNBC, UBS Bank, Mercer, ECL International, Economist, Forbes etc. These firms employ different yardsticks to measure the cost of living in different cities. One of the methods these surveys employ is to convert local prices into US dollars. So, the cost of living in cities outside the US dollar zone becomes more expensive if the dollar depreciates against local currencies. The surveys often have different cities at different ranks in their lists, primarily because of the mode of comparison used. Some surveys take the cost of real-estate as a benchmark, while some may compare the prices of gasoline, rice, hamburger etc. Some of the latest surveys employ a method known as Apple iPod index to determine the cost of living in a city. Apple iPod index calculates the number of hours an individual needs to work in order to buy an iPod. All these modes of comparison yield different results, so what we have tried to so is to make a generalized list of the most expensive cities in the world.

Most Expensive Cities in the World

• Luanda, Angola
  Although 57% of Angolans live in poverty, Luanda the capital of Angola is one of the most expensive cities in the world. Angola which is rich in oil resources is recovering from a 27 year old civil war which destroyed its infrastructure. Most of the goods have to be imported to Angola. While over 60% of the population lives on less than $2 per day, a decent apartment can cost as much as $10,000 and for a lunch one has to shell out $100.
• Tokyo, Japan
  It is not surprising that Tokyo is up there on the list as it also is one of the world's most densely populated cities. Tokyo, the capital city of Japan, has 13 million people living in 2000 square kilometers, which means housing prices are always high. Also, Tokyo is often hit by earthquakes and cannot build skyscrapers, further increasing the land prices.
• Oslo, Norway
  Oslo, the capital of Norway is one of the most expensive countries of the world. The government has levied high tax on imported items and alcohol, tobacco etc. So, a pint of beer will cost you anywhere up to $14. Oslo, also has a dearth of hotels, so tourists have to pay relatively high prices for staying and food.
• Nagoya, Japan
  Nagoya is Japan's fourth most populous city and 44% of world's automobiles are made there. The city ranks one for the cost of 1 kg of rice at $9.14. It is home to companies like Toyota, Suzuki, Mitsubishi, Volkswagen etc. making it one of the world's busiest cities for business.
• Yokohama, Japan
  Known for its shipping, biotechnology and semiconductor industries, Yokohama is one of the world's most expensive cities. To have a hearty meal and a beer, one has to shell out around $30 in Yokohama.
• Stavanger, Norway
  This seaside city is known as Norway's petroleum capital as it has huge oil resources, courtesy North Sea. Most of the expats living in Norway say that food expenses in Norway are about 50% higher than other countries of Europe.
• N'Djamena, Chad
  Years of civil war made foreign investors skeptical about investing in the country. With no financial from foreign investors, the demand for the most basic items is high making it one of the most expensive cities in the world.
• Zurich, Switzerland
  Zurich is the commercial capital of Switzerland and a major business center of the world. With most of the prestigious educational institutions, Zurich attracts top minds from across the globe. The steep rise in inflation rate has also made Zurich one of the most expensive cities in the world.
• Copenhagen, Denmark
  Because of a strong economy and comparatively high wages, Copenhagen becomes one of the most expensive cities to live in Denmark. The city is home to numerous international head offices and is host to a large number of expatriates.
• Geneva, Switzerland
  The headquarters of United Nations and Red Cross are in Geneva. It is the world capital for international diplomacy and cooperation. Housing in Geneva is expensive as well with a two bedroom luxury apartment costing $4010 per month.

Most Expensive Cities in the US

1. New York
2. Los Angeles
3. White Plains
4. San Francisco
5. Honolulu
6. Miami
7. Chicago
8. Boston
9. Houston
10. Washington

All cost of living surveys have New York city as a baseline, that is, the prices are compared with the prices in New York. New York ranks 29th in the list of most expensive cities in the world and number one in US. The rankings act as an indicator for governments to review the compensation that the employees get in that country.