The True Cost of Living: What It Takes to Reside in 12 Major Global Cities in 2025

From New York to Singapore—Breaking Down the Expenses of Urban Living in the World’s Most Expensive Cities

True Cost of Living

Moving to a major city offers a wealth of opportunities, from career growth to cultural experiences. However, before making the leap, it’s crucial to understand the financial implications of such a decision. As living costs continue to rise worldwide, some global cities stand out as significantly more expensive than others.

According to the 2025 Cost of Living Index by Numbeo, which aggregates user-generated data and reputable sources, New York City and San Francisco lead as the most expensive places to live when rent is factored in. Meanwhile, Singapore tops the list in Asia, with living costs comparable to London.

Here’s a breakdown of the estimated monthly expenses for a single person living in 12 major cities around the world, converted to U.S. dollars.

The 12 Most Expensive Cities to Live in 2025

1. New York City, USA

Population: 8.1 million
Monthly expenses (excluding rent): $1,687.10
Rent for a 1-bedroom in the city center: $3,926.65
Total cost of living: $5,613.75

New York City continues to be the most expensive place to live in the U.S., driven by high housing costs, transportation, and daily expenses.

True Cost of Living

2. San Francisco, USA

Population: 788,000
Monthly expenses (excluding rent): $1,556.60
Rent for a 1-bedroom in the city center: $3,222.58
Total cost of living: $4,779.18

Despite a recent softening in housing prices, San Francisco remains among the top contenders for high living expenses, particularly in the tech industry-dominated Bay Area.

3. London, UK

Population: 9.7 million
Monthly expenses (excluding rent): $1,311
Rent for a 1-bedroom in the city center: $2,772.91
Total cost of living: $4,083.91

London’s appeal as a global financial hub comes at a steep price, with high rent and transport costs contributing to its ranking.

4. Singapore

Population: 6.1 million
Monthly expenses (excluding rent): $1,131.30
Rent for a 1-bedroom in the city center: $2,921.58
Total cost of living: $4,052.88

Singapore’s high cost of living is attributed to expensive real estate and high taxes on luxury goods, making it one of the priciest cities in Asia.

5. Chicago, USA

Population: 2.6 million
Monthly expenses (excluding rent): $1,287.30
Rent for a 1-bedroom in the city center: $2,325.34
Total cost of living: $3,612.64

6. Sydney, Australia

Population: 5.2 million
Monthly expenses (excluding rent): $1,116.70
Rent for a 1-bedroom in the city center: $2,159.11
Total cost of living: $3,275.81

7. Lisbon, Portugal

Population: 3 million
Monthly expenses (excluding rent): $781.70
Rent for a 1-bedroom in the city center: $1,481.93
Total cost of living: $2,263.63

8. Tokyo, Japan

Population: 37.1 million
Monthly expenses (excluding rent): $961.80
Rent for a 1-bedroom in the city center: $1,113.08
Total cost of living: $2,074.88

Tokyo remains one of the most expensive cities in the world, with high property prices and daily expenses despite its efficient public transport system.

9. Seoul, South Korea

Population: 10 million
Monthly expenses (excluding rent): $1,073.2
Rent for a 1-bedroom in the city center: $822.97
Total cost of living: $1,896.17

10. Shanghai, China

Population: 29.9 million
Monthly expenses (excluding rent): $616.80
Rent for a 1-bedroom in the city center: $924.45
Total cost of living: $1,541.25

11. Mumbai, India

Population: 21.7 million
Monthly expenses (excluding rent): $406.70
Rent for a 1-bedroom in the city center: $650.20
Total cost of living: $1,056.90

12. Jakarta, Indonesia

Population: 11.4 million
Monthly expenses (excluding rent): $515.30
Rent for a 1-bedroom in the city center: $394.60
Total cost of living: $909.90

How to Budget for Life in These Cities

Financial experts recommend the 50-30-20 rule when considering moving to an expensive city:

50% of income for essentials (housing, utilities, food)
30% for discretionary spending (entertainment, travel, dining out)
20% for savings and investments

Final Thoughts

While some cities come with sky-high living expenses, they also provide unmatched professional and lifestyle opportunities. Before making a move, potential residents should evaluate their financial standing, job prospects, and lifestyle preferences. Tools like Numbeo provide up-to-date insights on global living costs, helping individuals make informed decisions.

For those considering relocation, researching long-term economic trends and cost-saving strategies is crucial. The key to thriving in a high-cost city isn’t just earning more—it’s managing expenses wisely and taking advantage of financial planning resources.

Also read:

Best Cities to Invest in Real Estate (2024): Top Markets for Maximum ROI

Smart Money Management: The Key to Building Wealth and Financial Freedom

7 Reasons You Should Rent a Home in Retirement – Retirement Housing Solution

Kaleem Khan

Kaleem Afzal Khan is a versatile freelance writer with a passion for crafting engaging and informative content. From articles to blogs, he specializes in delivering words that captivate and inform the audience.