List of Most Expensive Cities In The World For Students (2025)

Understanding the financial landscape of global cities is crucial for anyone considering relocation or investment.

Several surveys provide insights, with Mercer’s Cost of Living City Ranking analysing over 200 items across 226 cities.

The Economist Intelligence Unit (EIU) also publishes cost of living data, focusing on the typical expenses of expatriates and business travellers.

Numbeo, a crowdsourced database, offers a more granular view, allowing users to compare costs between specific locations. 

These indices highlight the significant impact of housing costs, transportation expenses, and the price of goods and services on overall living expenses, enabling individuals and businesses to make informed decisions.

Sr. No.	City	Country	Average Rent (1BHK)	Average Cost of Living
1.	Hong Kong	China	£ 3,000	£ 4,400
2.	Singapore	Singapore	£ 2,800	£ 3,800
3.	Geneva	Switzerland	£ 2,500	£ 4,000
4.	Zurich	Switzerland	£ 2,400	£ 4,200
5.	London	UK	£ 2,300	£ 3,700
6.	Nassau	Bahamas	£ 1,800	£ 3,200
7.	Basel	Switzerland	£ 2,000	£ 3,500
8.	New York	United States	£ 3,500	£ 4,800
9.	Los Angeles	United States	£ 2,700	£ 4,000

Cost of Living Indices

The 2025 cost of living indices provides valuable insights into the affordability of various urban centres, considering factors like housing, transportation, and everyday expenses.

By examining these indices, individuals can decide where to live, work, or invest their resources.

1. Singapore

Singapore ranks among the most expensive cities globally. A strong economy and high quality of life support its high cost of living.

The Numbeo Cost of Living Index gives Singapore a score of 79.1, with a Rent Index of 67.0. Expatistan’s Price Index ranks Singapore 3rd globally at 232, using Prague as a reference point. This reflects higher expenses for housing, transportation, and everyday goods.

2. London, United Kingdom

London remains a pricy global hub. Numbeo’s data places London’s high cost of living as the 14th most expensive. Expatistan’s Price Index positions the UK at 5th overall, with a score of 199, highlighting expenses are greater than average.

London’s status as a financial and cultural capital drives up costs. By comparing live user data, it is observed that London is 36% more expensive than Manchester.

3. Nassau, Bahamas

Nassau’s high cost of living stems from its status as a tax haven and tourist destination. According to Numbeo, the Bahamas has a Cost of Living Index of 81.4. High import costs and a focus on tourism contribute to elevated prices for housing, food, and services.

4. Los Angeles, United States

Los Angeles is known for its expensive housing market and thriving entertainment industry. The United States as a country has a Price Index of 195, as per Expatistan.

The high demand for housing in LA, along with the draw of the entertainment and technology sectors, maintains its position as one of the costliest cities.

* The index values are dynamic and subject to change. For the most current and updated figures, refer to the relevant official sites.

Most Expensive Cities In The World To Live In 2025

Figuring out how much it costs to live in different cities around the world can be tricky, with certain cities consistently topping the charts as the most expensive.

Here’s a look at some of the prime contenders for the title of “most expensive city” in 2025:

1. Hong Kong

Hong Kong is consistently ranked as one of the most expensive cities in the world due to its expensive housing market. This stems from the city’s overpopulation and scarce land, which increases the competitive demand and prices.

The developable land is under the government’s control and is resold at extremely high prices, making the housing market ruthless. 

Not only that, but the recreational nightlife, numerous markets, and sights are some of the amazing incentives the city has to offer, which make it a wonderful place to live. Hong Kong attracts some of the world’s wealthiest and most successful businessmen and expatriates.

2. Singapore

Singapore’s robust economy and high quality of life contribute to its elevated cost of living. As a key financial hub, it attracts a skilled workforce, driving housing demand and pushing real estate prices upwards.

Strong infrastructure and great public services further contribute to living expenses, making it a costly yet desirable city.

The government actively implements measures to address rising costs and support its citizens amidst global economic challenges.

3. Geneva

Famous for its Jet d’Eau, which is the world’s largest water fountain, Geneva is one of the most international cities in the world since about 40 per cent of people living there do not hold a Swiss passport.

The city hosts a ton of luxury cafes and shopping places where the shopping spree could last for days. The constant comfort and elegance that the city offers are what entices people to relocate to Geneva, even though it is one of the most expensive cities in the world.

4. Zurich

An absolutely sumptuous city, Zurich is situated on the northern end of Lake Zurich and looks like royalty. It is famous for its waterfront esplanades, well-crafted chocolates, high-end shopping arcades, fine dining restaurants, and much more.

Indisputably, Zurich is on the list of the top cities in the world with high living expenses. It is also the most extravagant Swiss city to rent. However, to balance it out, the net pay is also equally high, and the city is welcoming to tourists and immigrants.

5. London

London retains its place among the priciest cities due to high housing costs, transportation expenses, and the overall cost of goods and services.

High demand coupled with limited housing supply drives up real estate prices. Despite these high costs, London remains a global centre for finance, culture, and education, attracting a diverse population and continuing to offer significant opportunities for career advancement and personal growth.

6. Nassau

Nassau’s status as a tax haven and tourist destination drives its high cost of living, placing it among the top contenders. Its attractiveness to wealthy residents increases the cost of real estate and services.

Due to its dependence on tourism and imports, prices for goods and services are generally higher. The limited supply of housing further contributes to the overall high expenses, creating a competitive market for residents.

7. Basel

Switzerland’s oldest university city, Basel, is situated along the banks of the Rhine River. With the most vivacious art scene, it hosts the world’s largest art fair every June.

The historic buildings and beautiful architecture truly make Basel a lovely city to live in. It is predominantly a green city that hosts an array of events, activities, sports, and relaxation games all year round. However, the elegance of living here comes at an expensive cost.

8. New York

New York City is the only North American city that made its way to the compilation of the costliest cities in the world.

One of the most popular cities on the globe, NYC is known to harbour the dreams and aspirations of millions of people. It has a ton of entertainment options, and the city never lets a dull moment pass by.

At its heart is Manhattan, a densely populated borough that is amongst the world’s major cultural, financial and commercial centres. Unquestionably, New York is extremely expensive to live in.

9. Los Angeles

Los Angeles, with its high housing costs and thriving entertainment industry, remains one of the most expensive cities.

As a hub for entertainment and technology, it attracts high earners, increasing the cost of goods and services throughout the area.

The city’s appealing lifestyle and diverse career opportunities continue to draw individuals despite the significant financial commitment required to live comfortably.

Factors Driving Up Costs

Living in major metropolitan cities comes at a premium, driven by various economic, social, and infrastructural factors. The cost of living continues to surge due to the complex interplay of demand, availability, and global economic trends.

Housing Costs

One of the most significant contributors to high living expenses is the housing market. With growing populations, limited land availability, and increased urbanisation, property prices and rental costs in major cities skyrocket.

Real estate investments and foreign buyers further drive up prices, making homeownership and renting more expensive for residents.

Transportation Expenses

Urban dwellers often face high commuting costs, whether they rely on public transport or private vehicles. In cities with extensive public transit systems, rising operational costs and government subsidies result in higher fares.

Additionally, fuel prices, vehicle maintenance, insurance, and congestion-related expenses further burden private car owners.

Goods and Services

Everyday necessities, from groceries to healthcare, are more expensive in high-cost cities. Supply chain disruptions, local regulations, and high labour costs contribute to inflated prices.

Dining out, entertainment, and personal care services also come at a premium, reflecting the higher wages required to sustain businesses in expensive urban environments.

Economic and Geopolitical Factors

Global economic shifts, such as inflation and currency fluctuations, affect purchasing power. Political instability and trade restrictions can lead to supply shortages, further increasing costs.

Additionally, rising wages, taxation policies, and local government regulations influence pricing structures, making essentials even more expensive.

Tips for Managing Expenses in Expensive Cities

Living in an expensive city doesn’t have to break the bank. Here are some tips for managing expenses:

Tips	Description
Budgeting	Identify areas where you can cut back by categorising expenses into fixed and variable costs, prioritising needs, and allocating funds for savings and investments.
Housing	Consider living in less central areas or co-living arrangements to reduce rent. Research prevailing rental rates and negotiate terms with landlords.
Transportation	Public transport like buses, metros, and trains are significantly cheaper than taxis or ride-sharing. For shorter distances, consider cycling or walking. Carpool with colleagues.
Dining	Cook meals at home more often to save money on food costs. Limit dining out. Prepare meals for the week, saving both time and money. Take advantage of affordable lunch deals and happy hour specials.
Entertainment	Look for free or low-cost entertainment options, such as parks, museums (with free entry days), and cultural events.
Utilise Company Benefits	Many companies offer benefits like health insurance, meal vouchers, or transportation allowances; take advantage of these to reduce out-of-pocket expenses.
Avoid Impulse Buys	Resist the urge to make impulse purchases. Create a list of things you need and prioritise them. Use apps to track spending to maintain accountability.
Build Social Network	Building a social network in a new city can lead to cost-sharing opportunities, such as sharing accommodation, transportation, or bulk purchases.
Explore tax benefits	Research and claim all applicable deductions to lower your tax liability.

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FAQs

1. What factors make a city one of the most expensive in the world to live in?

High housing costs due to limited land and urbanisation, expensive transportation, high prices for goods and services (groceries, healthcare, etc.), and economic/geopolitical factors like inflation and trade restrictions all contribute to a city’s high cost of living.

2. Which cities are consistently ranked among the most expensive in the world?

Hong Kong, Singapore, Geneva, Zurich, London, and Los Angeles are some of the most expensive places to live in 2025.

3. How do cost of living indices help understand a city’s affordability?

Cost of living indices, like Mercer’s Cost of Living City Ranking, the EIU, and Numbeo, consider factors such as housing, transportation, and everyday expenses. These indices help individuals and businesses make informed decisions about where to live, work, or invest.

4. What are some practical tips for managing expenses in an expensive city?

Budgeting, considering less central housing, utilising public transportation, cooking at home more often, seeking free entertainment, leveraging company benefits, avoiding impulse buys, building a social network for cost-sharing, and exploring tax benefits can all help manage expenses.

5. Why is housing such a significant factor in the high cost of living in many cities?

Limited land availability, increased urbanisation, real estate investments, and foreign buyers drive up property prices and rental costs, making housing one of the most substantial expenses.