Tel Aviv is officially the most expensive place to live in the entire world. The latest figures from the Worldwide Cost of Living Index places the Israeli coastal metropolis ahead of Paris and Singapore (tied for second place), Zurich and Hong Kong. In sixth place is New York City.
The ranking is determined by examining the local cost of housing, transportation, food, entertainment and amenities. A strong shekel combined with rising local gas and grocery prices due to Corona-related shortages pushed Tel Aviv ahead several places this year.
The cost of living in Tel Aviv and other major Israeli cities is quickly outstripping the income of local residents.
In Zurich, for instance, the high cost of living is matched by strong domestic purchasing power. In other words, most families make more than enough to cover the local cost of living. In Tel Aviv, average domestic purchasing power is lower than the cost of living.