One of the biggest factors in comparing cities is the exchange rate of the country vis-a-vis your own. With the economies of nearly every country going crazy over the last few years, the list of the most expensive cities in the world has seen some dramatic changes. Every city is compared against the standard of New York City. The list was compiled by UBS Bank, an entity which measures the world’s financial temperature and these are the results:
1. Oslo, Norway
Those poor Norwegians in Oslo: although they earn more than nearly anyone else in any major city, their money doesn’t go that far. Everything in the city is horribly expensive – and that was before the economies of the world went crazy. It has been the number one most expensive city in the world for two years in a row.
2. Zurich, Switzerland
Here’s another European city, but this one has a happier story. The citizens have some of the best purchasing power compared to other cities on the planet. However, it’s still the second most expensive city in the world in which to live, so it doesn’t go very far. You can’t win for losing.
3. Geneva, Switzerland
Those Swiss – gotta love ‘em. The capital of the country boasts the third-highest salaries in the world and also has great domestic purchasing power. Though still the third most expensive city in the world, its citizens are a bit better off than their countrymen in Zurich.
4. Tokyo, Japan
The capital of Japan isn’t so fortunate. The city is the fourth most expensive in the world and their workers are paid an average salary compared to others. In other words, they don’t make all that much and what they do make goes almost entirely towards just surviving.
5. Copenhagen, Denmark

Copenhagen in Denmark, 5th Most Expensive City in the World, Photo by Martin Nikolaj Christensen, Flickr
Yet another European capital on the list (are we seeing a trend here?). Compared to last year, the Danes are doing a bit better than the previous year, having moved to spot number five from spot number two. The cost of living decreased slightly, but was accompanied by a slight decrease in overall wages as well. Again – you can’t win for losing.
6. New York City, United States
Since NYC is the baseline score, it’s kind of hard to compare it to anything else on the list. However, according to other reports, the cost of living hasn’t changed much in the city for the past few years anyway.
7. Stockholm, Sweden
This is the third Scandinavian city on the list, Stockholm’s story is somewhat like its economy: depressing. Rental prices were driven up while wages fell along with domestic purchasing power. They got the worst of everything, moving them from the previous year’s No. 16 to seventh.
8. Toronto, Canada
Toronto’s growth has been great for its citizens. But the city just can’t seem to break the economic laws of supply and demand. With an greatly increased median wage income comes increased prices – for everything. Like Stockholm, Toronto is also suffering from high rental prices, driving its cost-of-living rate to eighth on the list.
9. Montreal, Canada
Montreal jumped a number of spots on two different scales. Like Toronto, it saw its wages increase quite a few spots compared to other major cities. Also like Toronto, rental prices skyrocketed, taking the city from the 31st most expensive city in the world to 9th.
10. London, England
Completing the list at number ten is the last of the European capitals. While the median salaries of its inhabits didn’t change much from the previous period, the cost to rent a place to inhabit did. The city witnessed nearly as dramatic of a change as Montreal, zooming from 21st to 10th.
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