There are some new cities taking the top spots of “most expensive cities to live in” in 2022.
CNN reported that Tel Aviv was the most expensive city in the world in 2021, but it no longer holds the title this year.
Here’s what we gathered.
Singapore and New York City are the most expensive in the world
The Economic Intelligence Unit found that Singapore and New York City are sharing the No. 1 spot of most expensive cities in the world in 2022.
CNBC reported that this is the “eighth time in 10 years that Singapore topped the list.”
Despite Singapore taking the top spot with New York City, the report found some Asian cities were able to dodge the price increases seen in other cities.
The cost of living increased in some Asian cities by an average of 4.5%, and some cities were able to avoid the price increases depending on how money was spent and what government policies were enacted in those areas, according to Bloomberg.
What are the most expensive cities to live in the U.S.?
U.S. News and World Report created a list of the top 25 cities that made the “most expensive places to live in the U.S. in 2022-2023.”
The top five cities listed from first to fifth were Los Angeles, Miami, San Diego, Salinas, California, and Santa Barbara, California.
CNBC also reported that since the U.S. Federal Reserve raised interest rates due to high inflation, purchases became more expensive, pushing New York City to be tied for the most expensive city to live in during 2022.
Upasana Dutt, head of the worldwide cost of living for the Economist Intelligence Unit, said, “New York has appeared in this list for the very first time. So for the U.S. dollar to strengthen so much and get to where it is now, it is quite unusual.”
What makes living in the city so expensive?
Dutt attributed the supply chain disruptions from China’s “zero-COVID” policy and the Russia-Ukraine war as the main reasons for inflation and higher cost of living.
“These two combined together placed a lot more pressure on access to goods and availability of products that account for (the) very basic necessities of people. And both of these together, then drove inflation across the world,” Dutt said.
The cost of living rocketed an average 8.1% over the past year in 172 of the world’s major cities, according to the EUI.
U.S. News and World Report said that one possible reason why cities are more expensive could be that people who live in the city are more likely to participate in the activities and businesses that surround them.
This could range anywhere from entertainment, such as attending the theater, to shopping for food, clothes or groceries.