The world's most cost of living friendly cities revealed
As the cost of housing, petrol and essentials like food rise globally, the cost of living has become front-and-centre in a lot of people's minds. Now, Australian comparison site Compare the Market has ranked 42 of the world's most economically developed capital cities to find the most cost-effective place to live.
See how your city compares here.
37. Reykjavík, Iceland
Starting at the bottom, Reykjavik in Iceland has been ranked as the least affordable of the 42 capitals.
While Reykjavik residents benefits from a high average wage equivalent to $120,545 and low unemployment, this was offset by a sky-high cash rate of 9.25 per cent.
In addition, the cost of renting a home has skyrocketed by 60 per cent since 2015, petrol is $3.32 a litre and a cup of coffee will set you back $7.80.
36. San José, Costa Rica
San José came in second last in the rankings, thanks to a low average wage of $53,830 and high cash rate of 4.75 per cent.
35. Copenhagen, Denmark
The Nordic capital of Copenhagen faired surprisingly poorly on the cost of living analysis, despite a comparatively lower cash rate of 3.1 per cent.
In the capital of Denmark, a cup of coffee will set you back $9.85, petrol is over $3 a litre and the cost of housing is on the rise.
15. Paris, France
Moving up the rankings, Paris scored above average for cost of living in news that may surprise many travellers to the 'City of Lights'.
With a globally average cash rate of 3.65 per cent, residents benefited from higher-than-average wages, while rents have risen by only 7.5 per cent in the last nine years.
14. Riga, Latvia
The city of Riga in Latvia in the Baltic States has a low average wage ($54,697) compared to its western European neighbours, but the cost of essentials such as bread and milk is significantly lower and the average trip using public transport costs just $2.47.
13. Lisbon, Portugal
Lisbon in Portugal came in tied 13th place amongst the world's cost-of-living friendly cities.
While petrol averages over $2.70 a litre, milk is just $1.59 a litre, a loaf of bread is $2.33 and coffee is under $4.
13. Sydney, Australia
Despite its famously unaffordable housing, Sydney fared surprisingly well in the cost of living rankings in tied 13th place.
Relatively high wages of $94,694 a year, low unemployment of 4.2 per cent and affordable fuel at $1.68 a litre helped offset a 52 per cent increase in the cost of housing since 2015.
12. Berlin, Germany
Berlin just managed to beat out Sydney in the rankings despite its fractionally lower annual wage.
While petrol and electricity bills are more expensive, essentials such as milk and bread are notably cheaper and housing more affordable.
11. Warsaw, Poland
In Warsaw, Poland, essentials such as milk, bread and petrol are all affordable but the cost of housing has doubled in nine years - perhaps thanks to its high cash rate of 5.75 per cent.
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