The Ten Most Expensive Cities On Earth

Each year, global consulting firm Mercer releases its Cost of Living City Ranking to help multinational companies and institutions set guidelines for things such as benefits and compensation for international employees. The report examines over 200 attributes across categories like housing, transportation, and cost of food to provide a snapshot of global urban expenses that is supported by data. 

For 2025, Mercer’s list reflects a world volatile climate, shaped by inflation, constantly shifting exchange rates, and geopolitical instability. Cities in Europe, Asia, and North America dominate the top of the ranking, but the increasingly high cost of living in cities can be seen in nearly every region across the globe. 

In this article, we will highlight the top ten cities that Mercer has ranked as the world’s most expensive to live in.

Population – 3.86 Million

Median Household Income (USD) – $80,366

Median Rent – $2,189

Median Home Cost – $879,500

According to Mercer, Los Angeles is one of the most expensive cities in the United States, and part of that is due to its status as one of the world’s costliest housing markets for both rent and home prices .

Population – 400,000+

Median Household Income (USD) – $35,540

Median Rent – $1,800

Median Home Cost – $721,000

Housing costs are also a factor in the number nine city on the list, Nassau, Bahamas. The capital of the Bahamas is known for its tourism industry, however, this is a double edged sword that has led to less diversification in its economy overall.

Population – 8.9 Million

Median Household Income (USD) – $51,000

Median Rent – $2,292

Median Home Cost – $900,000

London has remained as one of the top moving destinations for both UK citizens and for people from abroad. However, this has also meant that the city’s housing supply can’t keep up with its population growth.

Both rent and housing costs continue to grow, and combined with rising inflation, London has become a perennial contender on this list.

Population – 8.52 Million

Median Household Income (USD) – $79,713

Median Rent – $2,539

Median Home Cost – $751,700

The extreme cost of living in New York City has become a part of the city’s story for a long time, and there is little to suggest that it will change soon. New York City remains as one of the United States’ most expensive cities, and the rising cost of housing, food, and basic necessities have all contributed to this distinction.

Population – 137,000

Median Household Income (USD) – $145,000

Median Rent – $1,368

Median Home Cost – $1.3 Million

Switzerland’s capital city, Bern, faces the same causes of high living costs as other Swiss cities. The country has one of the highest median household incomes in the world, which has made it one of the world’s wealthiest countries, but has also made it very expensive to live and to visit.

Population – 177,595

Median Household Income (USD) – $145,000

Median Rent – $1,481

Median Home Cost – $2.1 Million

Like Bern, the high cost of living in Basel is also a result of the quality of life in Switzerland as a whole.

Population – 201,741

Median Household Income (USD) – $145,000

Median Rent – $2,078

Median Home Cost – $3.8 Million

The beauty of Geneva and its status as a global financial center has made it a popular destination for international workers. Combine this with the already expensive cost of living in Switzerland, and you have the third most expensive city in the world.

Population – 415,367

Median Household Income (USD) – $145,000

Median Rent – $2,263

Median Home Cost – $3 Million

Zurich is also a consistent member of Mercer’s global cost‑of‑living rankings, and shares the same tale of high salaries, high rents, and high housing costs as its domestic siblings.

Population – 6.01 Million

Median Household Income (USD) – $100,416

Median Rent – $2,312

Median Home Cost – $612,000

The tiny city‑state of Singapore ranks among the most expensive cities to live, due to a variety of reasons. Although the country is relatively affluent, many Singaporeans live check to check due to the high cost of goods and increased inflation. 

Population – 7.4 Million

Median Household Income (USD) – $59,000

Median Rent – $1,662

Median Home Cost – $900,000

Few cities rival Hong Kong’s reputation for extreme living costs. The cost of buying a home in Hong Kong can be blamed in part for this. Hong Kong is one of the world’s most densely populated cities. 

However, the housing supply has not been able to keep up with the city’s growth. The high cost of land is also a contributing factor to the high cost of real estate.

Numbeo

Global Property Guide

Real Advisor

World Data

Data USA

Mercer