World wide cost of living rankings for 2012
numbeo.com
numbeo.com
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I'm in Darwin, Australia. The small map (correctly in my view) shows us as bright red -- quite expensive -- because of the combination of isolation (high fuel, food, labour costs) and land shortages (ie high rent).
I see people in SV and NYC complain about the rent. Well I pay that much ... and I don't earn SV / NYC wages. And I don't live in one of the Earth's great commercial or cultural epicentres.
I would if I could.
So quitcherwhinin'.
You're certainly right about the isolated part, though. Might as well be half way around the world from your nearest neighbor!
Basically the same as everywhere, minus the natural advantages to trade.
Apart from the ruinous cost of living, Darwin is a city I like living in. I just don't like working here.
I can tell you that the erosion in the real standard of living in Australia, particularly Perth, in the last decade is mind-blowing.
The way I see it the resources boom has driven up the cost of construction both directly (through infrastructure projects) and indirectly (increased demand for residential housing from net migration). It now costs anywhere from $1500-2000/m2 to build a house.
That's insane.
That cost is then passed on through wage demands, the cost of running any business and so on. Rent is at or above New York levels (my old apartment in West Perth is now more expensive than my apartment in Manhattan).
Apart from roughly comparable rent in NYC, everything else is significantly cheaper.
Increased population pressure, property prices and construction costs are also reflected in the skyrocketing price increases in food, water and power.
London is (or at least was the last time I visited) reasonably expensive.
Zurich has a reputation for being expensive but honestly it's not anymore. Fact is, you can still get a studio in the city for maybe under CHF1000/month (something you can't in Perth). Yes food is more expensive but you pay lower taxes and everything else is, at worst, comparable in cost. I look at property prices in nice towns like Zug or Luzern and (IMHO) it's way more affordable than Perth.
So ignore whatever the CPI tells you about Australia. IMHO it's not a place you want to live now unless you have owned property for at least 10 years (and thus rode the property boom and are reasonably cashed up) or are rich. Either way it's one of the most expensive countries on the planet now.
On the other hand, public transport on the north-south axis is reasonably good thanks to an uncharacteristic degree of planning foresight starting in the 60s.
If you don't have to live in the CBD or adjacent, Perth can be very affordable. You just have to shop around or put up with a 30 minute commute on a train (oh noes!).
Question is : what can be done?
I would say a property price drop would be a good thing because it would feed into lower rents for everything. But that, of course, would have damaging wealth effects for people who lose everything when their mortgage went underwater, and the banks would take massive losses on their oversized residential mortgage portfolios.
More economic growth might reignite property and job markets.
I was talking to a friend of mine in Sydney who earns 200k plus. He was struggling with the idea of buying an average townhouse in an average Sydney suburb because his mortgage + expenses would run over $3k per month. It's madness.
Are we to just stagnate our way out of it? Hold property prices and rents level for 10 years while incomes eke upwards? Or is Australia destined to be in the Norway/Switzerland/Sweden club forever more, and the cheap-as-chips country of my youth is gone forever?
I just can't get away from the uncomfortable feeling that whatever adjustment comes along will be painful.
I worry about the effect that this is going to have on the education level of the local populace. What's the incentive to stay in school to Yr 12 when you can drop out at 15, get an apprenticeship and be earning a motza by the time you're 18?
I don't know how it can be fixed, but Australia's insane cost of living explosion needs to be sorted out. I suspect most of it is real-estate related (ie, the pub needs to pay huge rent so passes it on in beer costs).
It used to be that someone in the UK or USA could sell their house and move to Australia and live the good life. Now that same strategy would see you living a crappy life in a bad suburb.
Several of my friends have recently made the decision to move to the USA where they can. The economy isn't great, but the cost of living can't be beat if you do have a job.
The good news for HNers - there is abundant work here. If you know people outside the tech scene, they could do a lot worse than get a working holiday visa and visit Australia whilst the US or UK economies improve.
Any idea why Australia, with more than ample land, and relatively small population doesn't attempt the same?
(not saying it's a good idea, but interesting to notice at any rate)
Secondly, large businesses who provide employment don't want to be based outside of large cities because there's no talent so you get this problem the net migration is to the large cities forcing up real-estate prices and labour costs.
It's this vicious catch-22 - how can you attract people and businesses to regional centres without investing in infrastructure yet where's the demand to build infrastructure if populations of said regional centres is declining not increasing.
It's 2012 and the drive to urbanization (especially mega cities) has never been greater than now and yet to solve some of Australia's structural economic problems we need to attract people away from big cities by creating self-sustaining (in the sense it provides adequate opportunities for its own population) regional towns with fast rail links to major cities. It's an impossible feat with the system of Government we have now which fosters basically a 2 party system where both are slightly right of centre and stuck in their echo chamber of mediocrity.
Our land and planning laws are amongst the most complicated and restrictive on Earth. A comparable economy is Texas - but Texas has very light land release rules and so housing prices there have remained, in real terms, much more reasonable.
Additionally, almost all of our major cities are wedged between the ocean and hills or mountain ranges.
"Eating Out" has all but disappeared from my life because to get equivalent quality restaurant food, it's about double to triple the cost of SF. I drink a lot less beer too now don't know whether it's good or bad.
I suspect you're right, all the 'nice stuff' and discretionary leisure activities are in the expensive areas so we're all paying indirectly for the insane price of real-estate.
Even though I have a mortgage I'm really hoping prices stagnate in absolute $ terms so our real standard of living can catch up again.
For example Vienna and Bratislava.
If nothing else, if you can work in the high cost of living place, and live in the low cost area.
There are quite a large number of Slovak students and assistants at my university.
It is also common for Viennese to use the Bratislava airport instead of Wien Schwechat because of the lower airport charge.
Those two cities are only a half an hour drive apart from each other. We now even use the same currency.
I don't do this because I love living right in the heart of Portland way too much though.
PS: Nit. It's about 650 miles from Portland to SJ.
I lived in SJ from 1992-2001. I knew my current boss from that time. Sometime around 2006, while I was living here in Oregon, he emailed me and asked if I might be interested in doing X for him.
I've gotten my last seven jobs through friends. The last two have been since I moved to Oregon. The last time I applied for a job where I didn't know anybody was 1985.
What am I missing?
One of the things I liked the most was the subway and public transportation system. I didn't have a car at the time and the system was relatively cheap. The system allowed me to get back and forth to my job everyday while also enabling me to head down to Manhattan or other boroughs (I was in Queens) for fun. While it did take time, I had time to spare, but not much money so it worked.
The people. NYC has a very diverse set of people, like in many other large cities. In NYC, you can meet anyone, with a broad range of cultures, but you are in control of your own destiny. In my experience, nobody (most) talked to anyone unless they knew someone ahead of time. It was a funny feeling at first, people would be sitting directly across from each other (6 feet/2 meters) - totally ignoring each others' existence. But! If you were interested in getting to know someone you could, most people were receptive when talked to. Sure, there are a few assholes, but there's always assholes in the group. Included in this are roommates, if you manage to get a good set of roommates while there, that's awesome. If you don't, you can always move. I was lucky in this respect.
NYC has pretty much everything you could want to do, plays, movies, museums, beaches, ice skating, gyms, martial arts, the list goes on except mountain stuff, and even then it's within traveling distance. I enjoy snowboarding so that's one of my main reasons for not wanting to live there. I don't have the time to travel that much anymore, unfortunately.
NYC has a huge mount of opportunity in most industries if you're looking for a job. You just have to reach out and capture it, nobody will hand it to you (usually).
The things I didn't like...
The perception of certain areas. The Bronx, Harlem, some parts of Brooklyn and Queens have bad reputations. Some of it is true but mostly not. There are lot of things in these areas you wouldn't see elsewhere in NYC. I feel you wouldn't get an accurate portrayal of NYC if you didn't go to these areas. The key is to not go out asking for trouble by flashing money around or causing people grief (making people look stupid). Walk confidently and with purpose and you won't usually have an issue. I also wouldn't go wandering around these areas in the dark after drinking either.
Initially, I hated the in-your-face sales approaches that vendors typically use. I got used to it, again, act confidently and don't let them take your money unless you really want what they're selling.
I'm not sure how grocery stores in Norway work but NYC is nothing like I ever knew. It was tough getting to them and even then, it was often public market or corner store food. It is somewhat expensive. Wholesale stores typically have better deals, if you can find one (BJs, Costco, Sam's Club, etc).
After awhile I started missing having a front yard to play with my dogs in. I didn't have much of a yard at the apartments I lived at.
It was a very valuable experience. It helped me grow as a person and helped me learn many different things. If I had to do it over again, I would.
That's it for now; if you have any questions feel free to ask me. Good luck in your travels.
>In my experience, nobody (most) talked to anyone unless they knew someone ahead of time. It was a funny feeling at first, people would be sitting directly across from each other (6 feet/2 meters) - totally ignoring each others' existence.
This is a norwegian city in a nutshell, so I'm really used to that. I don't really have a problem with it, until I travel to places where the locals are much more open and friendly than I am used to.
>I enjoy snowboarding so that's one of my main reasons for not wanting to live there.
I'm an avid skier as well, and this is probably the main reason holding me back so far. In this regard, another city which I like very much, Vancouver, BC, is obviously more suited for living. How is the tech industry there anyway?
>The Bronx, Harlem, some parts of Brooklyn and Queens have bad reputations.
The concierge at my hotel kept saying that we shouldn't go to some of these places unguided, but much of it seemed unfounded. Obviously I understand that there are neighborhoods that you shouldn't walk around in alone after nightfall, but to be honest Harlem, Bronx and Brooklyn where the places I felt most like home when I was there. Manhattan seems more foreign for someone coming from a city with the tallest building being 320 feet and that is a cathedral with a spire I guess.
>I'm not sure how grocery stores in Norway work but NYC is nothing like I ever knew. It was tough getting to them and even then, it was often public market or corner store food. It is somewhat expensive. Wholesale stores typically have better deals, if you can find one (BJs, Costco, Sam's Club, etc).
I LOVED the grocery stores in NYC to be totally honest; dirt cheap in comparison to Norway and fantastic food on the whole. I would love to see what you pass as great grocery stores :)
>That's it for now; if you have any questions feel free to ask me. Good luck in your travels.
Thank you again for taking the time, and good luck to you too!
For example, the site claims that residents of Indianapolis, IN have the most (average) purchasing power of anyone in the world, by an incredible margin. Indianapolis is nice enough, but I'd be shocked if that were true.
Still a cool/interesting site, but I would take it with a grain of salt.
[1] http://www.numbeo.com/common/motivation_and_methodology.jsp
As an anecdote though, when I was vacationing there this summer all groceries, restaurants and similar felt incredibly cheap, and although rent on Manhattan was steep, I found a comparable apartment to my own in Williamsburg that had a slightly higher cost than what I am paying now. Maybe what I'm missing is health insurance? How much does it cost a normally fit 21 year old male for full coverage insurance?
If they're not in school, and they don't have their own job that provides health insurance, well...honestly, if they don't have a job that provides it, then they probably don't have a job that pays enough that they can afford to get it independently either. Most of my friends in that situation just gamble and try not to go to a doctor unless absolutely necessary. If they do have to...well, then they're going to be in some serious debt.
It's not a very good system, but it works for the people who have influence.
What you're hearing is basically a quality of life argument. If that's the kind of situation you want to get into, you should go for it. If you have a family or, you know, want some of your own space, the price rises dramatically.
I'd guess the other thing is that in new york you're exposed to people who are very wealthy. It distorts the perceived cost of living vs actual numbers.
the expenses add up when you live in manhattan (probably $1k/month minimum depending on neighborhood), go out to eat and drink, and, essentially, exist. every time you walk outside you can deduct like $20 from your bank account.
Phoenix, where I live, is cheaper according to Wolphram Alpha than Dallas, Las Vegas, Chicago, and Devner whereas it's more expensive according to Numbeo's list.
Full blame goes to the UI. If I type a query into a search box, I expect it to search the full list. Not just the handful of entries on that page.
Any list of expensive cities not topped by Oslo is kidding itself. That place is insane.
Seems odd.