In this article, we will look at the world's 20 most expensive countries to live in 2024. If you want to skip our discussion about post-pandemic inflation in the United States, head over to the World's 7 Most Expensive Countries to Live In 2024.
The cost of living in the United States has increased significantly after the COVID-19 pandemic. A focus group survey by the Bank of America Corporation (NYSE:BAC) found that 67% of employees think that the inflation is rising higher than their wages. The bank did a similar exercise in 2021 when the proportion of employees who felt that inflation was increasing faster than their salaries was 58%.
This increase in the proportion of employees viewing the cost of living rising faster than their salaries indicates that inflation is increasingly affecting people in the country. Bank of America Corporation (NYSE:BAC) realized this and took steps in the right direction to provide relief to its employees. It raised its salaries despite high inflation and increased the minimum wage of workers working for it from $22 to $23 per hour. Bank of America Corporation (NYSE:BAC) also announced plans to increase the minimum wage to $25 per hour by 2025.
Just before the pandemic, Amazon.com, Inc. (NASDAQ:AMZN) also took steps in the right direction. In 2018, the company set the minimum wage of its workers to $15, which at the time was more than double the federal minimum wage. Amazon.com, Inc. (NASDAQ:AMZN) is a strong advocate of higher minimum wage standards.
It is now clear that post-pandemic inflation is much more stubborn than previously predicted. Although the first month of the year saw a decrease in inflation compared to December of last year on a year-on-year basis, inflation persisted at higher-than-expected levels.
On a 12-month basis, inflation in January 2024 was 3.1%, down from 3.4% compared to December 2023. However, a breakdown of CPI indicated that certain necessities have become more expensive as food prices went up by 0.4%. In addition, shelter prices went up by 0.6% on a month-on-month basis in January 2024. On a 12-month basis, shelter prices increased by a whopping 12% during the same month.
While companies like Amazon.com, Inc. (NASDAQ:AMZN) advocate high minimum wage standards, some companies held off increasing the salaries of their workers in 2023. One such company is the tech giant Microsoft Corporation (NASDAQ:MSFT). The company cited economic conditions as well as investments in artificial investments as reasons for this move. It is worth pointing out that in 2022, Microsoft Corporation (NASDAQ:MSFT) almost doubled its budget for merit increases for certain employees. All Microsoft Corporation (NASDAQ:MSFT) employees, however, will be entitled to stock bonuses and awards.
It is worth pointing out here that the United States ranks pretty high on our list of the world's most expensive countries to live in 2024, although you will likely have to go through the list to find out where it stands. High levels of inflation in the United States also lead to higher interest rates, since the governments want to restrict the money supply in the country. However, higher interest rates in the United States, in turn, increase the cost of living in developing countries.
Currently, oil is priced in dollars, which is why countries have to rely on their dollar foreign exchange reserves to buy oil. When interest rates rise in the United States, the dollar becomes expensive around the world. This leads to a capital flight of US dollars from developing countries because they have to buy increasingly expensive oil (since it is priced in dollars). When the reserves of the countries are drained, their own currency starts depreciating against dollars, plunging the country into the territory of higher prices. However, it is worth pointing out that these countries become increasingly cheaper for those who earn in US dollars.
With that backdrop, let's look at the world's 20 most expensive countries to live in 2024.
Methodology
To curate our list of the world's 20 most expensive countries to live in 2024, we used Expatistan's and Numbeo's cost of living by country rankings. We gave these rankings an equal weightage and averaged both ranks for each country to arrive at the Insider Monkey Score. The lower this score, the more expensive the country is and the higher it ranks on our list. As a tie-breaker, we used Numbeo's ranking.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy you can benefit from the wisdom of hedge funds and corporate insiders.
20 - Germany
Insider Monkey Score - 24.5
Germany is one of the world's most expensive countries to live in 2024. The average monthly cost of living for a single person in the country is more than €900 per month. According to conservative estimates, the median housing expenses represent more than 30% of the average consumer spending in the country. The high cost of living in Germany is due to various factors, including high taxes, high wages, and high demand for housing in major cities.
19 - France
Insider Monkey Score - 24
France is the 19th most expensive country to live in 2024. The cost of living in the country is higher than others in the same region. Paris is one of the most expensive cities in the country, while the southern parts of France have a lower cost of living. According to Numbeo's estimates, a family of four in France needs around $3,651 per month, excluding rent, while a single person’s average monthly costs are about $1,200 before rent.
18 - United Arab Emirates
Insider Monkey Score - 21
United Arab Emirates is one of the most expensive places in the world to live in. Its metropolitan areas, especially Dubai and Abu Dhabi have one of the most expensive real estate in the world. A one-bedroom apartment in central Dubai can cost up to $1,500 per month. In addition according to the CIA World Factbook, the average household expenditure on food in the UAE is 13.7% of total household expenditures.
17 - Qatar
Insider Monkey Score - 20.5
As per estimates from Numbeo, a family of four incurs an estimated monthly expense of $880 before rent in Qatar. The high cost of living in the country can be attributed to several factors, such as the developed economy and its reliance on oil. However, it is worth pointing out that the country is known for its tax-free income. In addition, utility bills in the country are generally subsidized by the government.
16 - Israel
Insider Monkey Score - 18.5
Israel has the highest cost of living among all OECD members, with the prices being 38% higher than other OECD countries. The country has high prices for basic consumer goods compared to other markets in the region. Milk, bread, and cheese, for example, are 50% to 70% more expensive in the country compared to other OECD members.
15 - New Zealand
Insider Monkey Score - 16.5
Compared to many other developed nations, the cost of living in New Zealand is considered high. A single person can expect to spend more than NZ$5,120 every month without paying the rent. In addition, a one-bedroom apartment in Auckland's city center could cost around NZ$ 1400.
14 - Netherlands
Insider Monkey Score - 16.5
The Netherlands is among the world's 15 most expensive countries to live in. The estimated monthly cost of living for a single person ranges from €2,500 to €5,000 without including rent. Amsterdam is one of the most expensive cities in the world to live in and has extremely high housing prices.
13 - Luxembourg
Insider Monkey Score - 16.5
Luxembourg is one of the most expensive cities in Europe. The housing prices in the country are 87% higher than the average of the European Union, with rents in Luxembourg City starting at around €1,610 for a one-bedroom apartment going up to €4,000 for a three-bedroom apartment.
12 - Canada
Insider Monkey Score - 15.5
Canada has a very high standard of living, which also means that it is one of the world's most expensive countries to live in. The estimated monthly cost for a family without rent is approximately CAD$ 4,848 in Toronto.
11 - United Kingdom
Insider Monkey Score - 15
The United Kingdom is 11th on our list of the world's 20 most expensive countries. As per the estimates from the Office for National Statistics (ONS), the average UK household spends ￡2,721 a month on household bills. In addition, Brits spend 13% of their household budgets on transportation and a substantial portion on food.
10 - Norway
Insider Monkey Score - 13
Norway is one of the most expensive countries to live in Europe. Rental prices in the country are particularly high, with the average rent for a one-bedroom apartment in Oslo costing around NOK 20,000 to NOK 30,000.
9 - Denmark
Insider Monkey Score - 12.5
Denmark is 9th on our list of the world's 20 most expensive countries to live in 2024. housing costs are a significant contributor to the high cost of living in Denmark, with rental prices being particularly high in major cities like Copenhagen and Aarhus. Some of the factors contributing to the high cost of living in the country include high taxes, wages, and demand for housing in major cities.
8 - Ireland
Insider Monkey Score - 11
Ireland is 8th on our list of the most expensive countries to live in 2024. The cost of living varies depending on the location, with Dublin being 33% higher than Cork and 47% higher than Belfast.