TOP 5 MOST EXPENSIVE CITIES IN THE WORLD TO LIVE…AND WHY

WHEN TRYING TO FIGURE OUT where in the world to live — or visit — it can be helpful to consult a cost of living index . A collection of submitted data by residents and natives, it lists the costs for basic necessities in cities around the world, allowing you to get a good picture of roughly how much it might cost to live there. You can also compare multiple cities around the world (for example, Montreal, where I live, is 17% more expensive to live in than Bogota, Colombia), although the information does not compare the income segregations of these cities, which can have an intense impact on the experience of living there.

But why are the most expensive cities so expensive?

Washington, DC

According to a study done in 2013, the DC area's median housing prices were 16.78 times the median income, which makes the country's capital even less affordable to live in than New York. Minimum wage in DC is $8.25 an hour, and it has a massive income gap, with the highest paid residents (often US Senators) far outstripping the lowest-paid (often African American or other minority groups). Washington is also a very dangerous city to live in; it rates 16th on the FBI's list of violent crime capitals. Still, you can get two liters of Coca-Cola for $1.60, a cappuccino for $4, and a pack of cigarettes is only likely to cost you around $7. The classism that runs rampant through the streets of Washington means costs for and access to basic necessities might vary wildly depending on neighbourhood; lower-income and minority neighbourhoods often have fewer amenities, less variety in restaurants, and less access to public transit. Keep that in mind when looking for a place to stay.

Wellington, New Zealand

As an island with a lot of gorgeous scenery and sheep, New Zealand has to import almost everything...which means prices for everyday items and produce can be quite high. One kilo of tomatoes costs about $5, a pair of new sneakers could average $152, and basic utilities for one month in an apartment could top $150. Far from wages making up for it, jobs in NZ are notoriously difficult to find. and a lot of Kiwis defect to Australia where the employment market is more secure, wages are higher, and they don't need visas to get a foot in the door. Still, Wellington is absolutely beautiful, which explains why people want to keep living there despite the insidious inflation. As a visitor, you would be more likely to feel the crunch in food prices (even self-catering is not much cheaper than restaurants, given the quality of pre=made food and the cost of basic ingredients) and vices like alcohol and tobacco, which could run you $12 for a cocktail and $18 a pack.

Tokyo, Japan

While Tokyo is often seen as being a very expensive city by foreign visitors, some things are more expensive (depending on where you're coming from, of course), and some are much cheaper. This article lists the six things foreigners see as being more expensive than back home: restaurants (small portions mean you pay more to eat a lot), fruit (which are considered luxury items), school fees, movie tickets, alcohol (almost twice the cost as in the US and four times what it costs in Germany), and skin care products. Generally, for most of these things, the extra cost means higher quality, and a beer in the supermarket is only $2.71, compared to a cocktail in a downtown club, which would cost about $10. Overwhelmingly, imported "foreign" food—like pizza—is very expensive compared to local street vendors, so expecting to eat the food from home at similar prices will leave you disappointed.

Helsinki, Finland

Even though migration to this Scandinavian capital is increasing, housing production is shrinking; most of the land in the city centre is not zoned for residential use, and some companies control access to apartments with monopolies. This means average housing costs can be quite high, even with a median monthly income of $5,500. A one-bedroom downtown (if you can find it) would run you about $1,100 a month, although if you wanted to buy, it could easily cost over $500,000. A bottle of wine from the supermarket will cost you $17 (alcohol is very expensive in Finland) and a dorm room in a hostel might be $40, so it's worth couchsurfing if you plan to stay here for any length of time. A coffee and a pastry only run about $6-8 in a nice cafe, though, so if you're a non-drinker, you're in luck! The weather and high cost, as well as not having a reputation for being a party capital, mean young backpackers often avoid Finland (and head for cheaper, warmer climes like Thailand), so you're less likely to be surrounded by partying 19-year-olds in Helsinki than in, say, London.

Hong Kong

Monthly rent in Hong Kong can soar to over $2,000 for a one-bedroom in the city center, or over $5,000 for a furnished place in a good part of town. The city is very small for the population density (over seven million inhabitants crammed into less than 450 square miles), and some apartment blocks cram thousands of units into tiny square footage. Government control over the housing market also drives up prices, making it a bit of a racket for anyone unlucky enough to need to sign a lease. That said, an inexpensive restaurant might cost about $6 for a meal, while a good old McDonald's combo meal is about $4.25, and, if you book in advance, you can often find passable hostel dorm rooms for $20 a night. Hotels cost about the same as in the West, though, although travel is significantly cheaper due to excellent public transit.