Singapore, New York, and Tel Aviv Top List of World's Most Expensive Cities in 2022

Singapore, New York, and Tel Aviv have been named the world's most expensive cities to live in for 2022, according to the latest Worldwide Cost of Living report released by the Economist Intelligence Unit (EIU). Singapore has held the top spot for the eighth consecutive year, while New York and Tel Aviv have risen in the rankings to secure second and third place, respectively.

The EIU report, which analyzes the cost of living in major cities around the globe, attributes the high costs in these cities to factors such as the strong US dollar, ongoing supply chain issues, and the lingering impact of the COVID-19 pandemic. The study takes into account the prices of consumer goods, rent, transportation, and other everyday expenses.

Why this matters: The EIU's Worldwide Cost of Living report serves as a key benchmark for assessing the financial challenges faced by residents and businesses in major cities worldwide. The findings emphasize the growing disparity in living costs between the most expensive cities and the rest of the world, which can have significant implications for economic development, social mobility, and quality of life.

In addition to the overall rankings, the report also sheds light on the rising costs for travelers visiting popular destinations. New York City, in particular, has seen a dramatic increase in hotel prices, with the average cost of a one-night stay soaring to $687 per person, making it the most expensive city for tourists among the ten most visited large cities worldwide. Other cities on the list, such as Paris, Rome, Berlin, Barcelona, London, and Dubai, have also experienced varying increases in costs for accommodations, meals, and other travel expenses.

While travel costs have generally decreased by 2% compared to March 2023, they remain 15% higher than pre-pandemic levels in March 2019. Airfares have seen a 7.1% year-over-year decrease but are still 2.6% higher than in March 2019. Hotel and motel prices have risen by 16.3%, car rental prices by 39.3%, and food away from home prices by 29.3% compared to March 2019 levels. Entertainment costs, such as movies, theaters, and concerts, have also increased by 22.6% since the start of the pandemic.

"The high inflation in these cities is driven by a combination of factors, including exchange-rate shifts and supply-chain problems," said Upasana Dutt, head of worldwide cost of living at EIU. "We can clearly see the impact in this year's index, with the average price rise across the 172 cities in our survey being the strongest we've seen in the 20 years for which we have digital data."

The EIU's Worldwide Cost of Living report serves as a crucial tool for governments, businesses, and individuals to assess the financial landscape of major cities and make informed decisions regarding investments, relocations, and economic policies. As the global economy continues to recover from the pandemic, the report's findings underscore the ongoing challenges and disparities faced by residents and visitors in the world's most expensive cities.

Key Takeaways

• Singapore, New York, and Tel Aviv are the world's most expensive cities in 2022.
• High costs driven by strong USD, supply chain issues, and lingering COVID-19 impacts.
• New York City is the most expensive city for tourists, with average hotel costs of $687.
• Travel costs remain 15% higher than pre-pandemic levels, with significant increases in airfare, hotels, and food.
• The report serves as a benchmark for assessing financial challenges in major cities worldwide.