The Economist Intelligence Unit (EIU) releases a biannual report revealing the world’s most expensive cities to live in. The 2021 Worldwide Cost of Living Index by the EIU assessed 173 cities for the report, comparing 200 goods and services including food, clothing, home rents, household supplies, transport and recreation. Evidently, supply-chain blockages and altering consumer demand have increased the cost of living in many of the biggest cities.
The Israeli city of Tel Aviv has emerged as the world’s priciest city, with a rapid change in costs and has jumped from fifth place to first in this year. Last year’s topper Paris has slid to second place, which is now tied with Singapore. Here are the most expensive cities to live in, in 2021.
Tel Aviv, Israel
Located on Israel’s Mediterranean coast, Tel Aviv has ranked as the world’s priciest city to live in with an increased cost of living amid soaring inflation. The increased value of the Israeli currency, the shekel, has increased local prices when converted into US dollars. With a successful vaccine rollout, the currency has ascended exponentially against the dollar. The beautiful city of Tel Aviv is known for its breathtaking architecture, archaeology, folklore, crafts and museums.
French capital, Paris, is one of the most beautiful cities in the world and one of the priciest as well. It was ranked the most expensive city in 2020, however, it has dropped to second position this year. It is one of Europe’s major hubs of finance, commerce, fashion, gastronomy and arts. Its stunning architectural attractions and museums attract millions of tourists each year but is quite expensive if you want to live in the City of Lights.
Singapore tied with Paris for the second spot this year. The sovereign island city-state in maritime Southeast Asia is a beautiful city with the greenest and cleanest environment. The report indicated that during the months of August and September, freight rates and oil prices were skyrocketing, which caused the higher prices for goods. Singapore has seen an increased cost of food, clothing, housing rents, and transportation among other things in 2021.
Switzerland has been among the priciest places to live for a long time. A global center for banking and finance, the city of Zurich has ranked third most expensive cities to live in. The serene Alpine lifestyle, political and economic stability, premium healthcare, and high quality of life have increased the cost of living. While its cost of living remains high, nothing deters tourists from enjoying this picturesque country.
Hong Kong, China
Hong Kong is no longer the most expensive city in the world to live in, instead, it’s the fourth in line. One of the most densely populated cities has lost its top rank to Tel Aviv. The city is known for its abundance of business opportunities and low taxes. Over the past few years, the living costs increased in the city, as real estate market has ranked among the most overvalued on the planet. However, amid the coronavirus pandemic tipped the scales.
New York City, United States
New York’s buzzing streets and nightlife sure look enticing and alluring, but living here is not cheap. America’s most expensive city has ranked fifth in the list of the world’s costliest cities to live in. The city has some of the most costly housing in the country, with the highest income taxes, both at the state and local levels. It is densely populated and houses some of the world’s major commercial, financial and cultural hubs.