SF among top 5 highest-cost-of-living in world: study

( KRON ) — At this point, numerous studies and data prove that San Francisco is one of the most expensive places to live in the United States. So that doesn’t come as much of a surprise. However, San Francisco is also among one of the most expensive cities to live in the world.

Well, that’s according to a recent study by Numbeo .

Numbeo’s mid-2024 study shows San Francisco ranked fourth-highest in “Cost of Living Index” with a cost of living index of 90.5, which is based on prices of consumer goods such as groceries, restaurants, transportation and utilities. Although, the ranking does not factor in rent or mortgage costs.

The only three cities with a higher cost of living are Geneva (Switzerland), Zurich (Switzerland) and New York City, according to Numbeo. Boston, Reykjavik, Washington D.C., Seattle, Los Angeles and Chicago round out the top 10.

San Francisco also ranked in the top 10 in Numbeo’s five other individual categories: Rent Index (2nd), Cost of Living Plus Rent Index (2nd), Groceries Index (3rd) , Restaurant Price Index (6th) and Local Purchasing Power Index (7th). See explanation for each category toward the end of this article.

In the Numbeo list from 2023 , San Francisco was rated the 12th-highest in Cost of Living Index. The city ranked fourth in Rent Index and Cost of Living Plus Rent Index. San Francisco was 11th in Groceries Index, 15th Restaurant Price Index, and 113th in Local Purchasing Power Index.

Methodology

The six factors in Numbeo’s Cost of Living Index were explained further. All the factors were rated on a scale in comparison to New York City. If a category was given an over 100 rating, that means it was more expensive than New York City’s numbers for that year.

Here’s what each category entails, per Numbeo:

1. Cost of Living Index (Excl. Rent) : This index indicates the relative prices of consumer goods like groceries, restaurants, transportation, and utilities. It excludes accommodation expenses such as rent or mortgage. For instance, a city with a Cost of Living Index of 120 is estimated to be 20% more expensive than New York City (excluding rent).
2. Rent Index : This index estimates the prices of renting apartments in a city compared to New York City. If the Rent Index is 80, it suggests that the average rental prices in that city are approximately 20% lower than those in New York City.
3. Groceries Index : This index provides an estimation of grocery prices in a city relative to New York City. Numbeo uses item weights from the “Markets” section to calculate this index for each city.
4. Restaurants Index : This index compares the prices of meals and drinks in restaurants and bars to those in NYC.
5. Cost of Living Plus Rent Index : This index estimates consumer goods prices, including rent, in comparison to New York City.
6. Local Purchasing Power : This index indicates the relative purchasing power in a given city based on the average net salary. A domestic purchasing power of 40 means that residents with an average salary can afford, on average, 60% less goods and services compared to residents of New York City with an average salary.

Read the full methodology on Numbeo’s website .

Numbeo is “the world’s largest cost of living database” and “a crowd-sourced global database of quality of life data: housing indicators, perceived crime rates, healthcare quality, transport quality, and other statistics,” according to its website .

The company launched in 2009, and its data has been cited in national outlets such as Forbes, Time, The Wall Street Journal and USA Today.

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