The World’s Most Expensive Cities To Rent An Apartment

Updated: Jul 14, 2023By Emma VernerBusiness

This article originally appeared on Investing.com. It has been republished here with permission.

NYC Skyline ©stockelements/Shutterstock.com

One of the biggest factors when it comes to calculating the cost of living in any given place is, of course, how much it costs to rent an apartment. Though high rent means a higher cost of living, some of the so-called most expensive cities in the world are actually still relatively livable because they compensate by paying workers higher salaries.

In other cases, rent isn’t actually as high as it is in say London or Paris, but because wages are generally lower it means that it’s comparatively harder to get by despite the availability of more affordable housing. While many of the cities on this list happen to be among the most expensive in general, they are more specifically the cities with the highest rent prices in the world.

1. Sydney, Australia

Cost of Living: $1,059/month*
Avg. Rent (1 Bedroom): $2,000/month*

Life down under can be downright expensive, even though Sydney is often portrayed as full of happy-go-lucky beach bums. Sydney is the most populous city in all of Oceania, with a population of 5.3 million residents as of 2019.

Sydney ©rudi1976/stock.adobe.com

Though Australia was actually founded as a penal colony, crime rates today in Sydney are remarkably low. It also attracts the most tourists, drawing in billions of dollars from tourism every year, from those who flock to sights like the Sydney Opera House and Bondi Beach.

2. Tokyo, Japan

Cost of Living: $1,118/month*
Avg. Rent (1 Bedroom): $1,500/month*

Both the capital and largest city in Japan, Tokyo is an extremely sought-after place to live, which is reflected in the high cost of living and higher rental prices. With nearly 14 million residents and millions more tourists per year, it’s also one of the largest urban economies in the world.

Tokyo, Japan ©Sakarin Sawasdinaka/Shutterstock.com

Made up of 23 districts and their outskirts, rental prices change dramatically based on proximity to Tokyo’s city center. For example, the rental price range for a one-bedroom apartment within the 23 districts is $600-$1,500, while outside the districts you can find places for as low as $400 a month.

3. New York City, USA

Cost of Living: $1,370/month*
Avg. Rent (1 Bedroom): $3,450/month*

New York City is synonymous with high cost of living and expensive real estate. Though not officially the capital, New York is the de facto economic capital of the United States, drawing in the wealthiest inhabitants from the finance and business sectors.

New York City, USA ©Ryan DeBerardinis/Shutterstock.com

To live in Manhattan, it’ll cost you around $3,000 a month in rent, unless you’re willing to consider taking on roommates or moving to a cheaper borough like Brooklyn or Queens, where you’ll likely spend closer to $2,000 a month for the same amount of space.

4. Milan, Italy

Cost of Living: $954/month*
Avg. Rent (1 Bedroom): $1,008/month*

Milan is one of the fashion capitals of the world, so it follows that the home of luxury fashion houses would have a dearth of affordable housing. The city with the second-highest population in Italy, following Rome, Milan’s economy is bolstered by finance, fashion, art, entertainment, and more.

Milan, Italy ©Olgysha/Shutterstock.com

The city receives 10 million tourists every year, mainly from Western Europe, China, and the United States. For those who enjoy spending the same amount as their rent checks on a single meal, Milan also ranks fifth in terms of the most Michelin-starred restaurants in the world.

5. Singapore

Cost of Living: $988/month*
Avg. Rent (1 Bedroom): $2,195/month*

Singapore is a unique entry on this list, as it’s both a city and a state of its own. Located on the tip of the Malaysian peninsula, Singapore is one of the most densely populated cities on earth, and one of the most racially diverse.

Singapore ©/Shutterstock.com

Singapore has a uniquely high home-ownership rate, with rates as high as 91%. If you do choose to rent an apartment in the modern city-state, you’ll likely be paying over two thousand dollars per month on the luxury, with high utilities to boot.

6. Paris, France

Cost of Living: $1,028/month*
Avg. Rent (1 Bedroom): $2,170/month*

Paris is such an iconic city, its name standing in for high culture and class, that people call other cities such as Beirut and Buenos Aires “The Paris of the Middle East” or “The Paris of South America,” respectively.

Paris, France ©Neirfy/Shutterstock.com

To live in the iconic fashion and food capital, however, it’ll cost you. Rent alone is incredibly high across all twenty neighborhoods, called arrondissements. The cost of living too consistently ranks among the top three, often fetching the top spot.

7. Frankfurt, Germany

Cost of Living (Excluding Rent): $1,000/month*
Avg. Rent (1 Bedroom): $1,150/month*

Frankfurt is one of the largest cities in Germany, with over 700,000 inhabitants as of 2019. As a business hub with a rather central location in Europe, its airport has the most direct flights of any airport in the world.

Frankfurt, Germany ©tichr/Shutterstock.com

As one of the financial centers of Europe, it comes as no surprise that Frankfurt would have high prices when it comes to renting an apartment. The cost of living in the city is higher than in other areas as well, even including trendy Berlin.

8. Oslo, Norway

Cost of Living (Excluding Rent): $1,285/month*
Avg. Rent (1 Bedroom): $1,505/month*

Oslo is one of the most expensive cities in the world, along with many of its Scandinavian neighbors. And due to the overwhelmingly high demand, rental properties are a hot commodity, and prices continue to soar.

Oslo, Norway ©GagliardiPhotography/Shutterstock.com

While renting in Oslo might seem like an unattainable dream, in general wages are high, and healthcare costs are low, making it overall perhaps more affordable than many places in the states and beyond.

9. Shanghai, China

Cost of Living (Excluding Rent): $744/month*
Avg. Rent (1 Bedroom): $1,400/month*

One of the relatively more affordable entries on this list is Shanghai, China. Though it still ranks among the most expensive rent per square footage in the world, unlike other large cities there are still affordable options.

Shanghai, China ©ESB Professional/Shutterstock.com

Due to the sheer size of the city, there are apartments in less desirable areas that allow residents to remain in Shanghai proper on a budget. In addition, the cost of living is significantly lower than in other major metropolises, even if you are paying high rent prices.

10. Dubai, United Arab Emirates

Cost of Living: $936/month*
Avg. Rent (1 Bedroom): $1,502/month*

The largest city by population in the UAE, Dubai is synonymous with cutting-edge luxury against a backdrop of traditional Muslim culture. Dubai is home to the Burj Khalifa, the tallest building in the world, and a man-made archipelago called the Palm Jumeirah.

To live in this city of stark contrasts, and desert climate, you’ll have to be prepared to pay through the nose for even a small apartment in the center. It would also be useful to know a handful of phrases in Arabic, as it’s the official language.

11. London, United Kingdom

Cost of Living: $1,142/month*
Avg. Rent (1 Bedroom): $1,003/month*

London frequently ranks near the top of the list of most expensive cities in the world, and of course, has incredibly high rent prices city-wide. The average cost of a one-bedroom, however, doesn’t accurately represent just how much it costs to live in a nicer London neighborhood.

London, England ©Songquan Deng/Shutterstock.com

Other cities on this list have small city centers and similar apartment stock. London is incredibly diverse and has a population of nearly nine million people spread across neighborhoods that range from ultra-posh to ultra-dodgy. So while other cities have apartments that are all around $1,000 a month, London has half that are much more and others that are much less, which creates the average.

12. Zurich, Switzerland

Cost of Living: $1,631/month*
Avg. Rent (1 Bedroom): $2,060/month*

Zurich, Switzerland is one of the most expensive cities in the world when it comes to both costs of living and rent prices. As Switzerland is not actually part of the European Union, it still has its own currency, the Swiss Franc.

Though you’ll spend a large chunk of your paycheck on rent in Zurich, it just may be worth it to live in the most populous Swiss city. Residents report great public transportation infrastructure, and though it’s nestled in a valley on a clear day you have a great view of the alps surrounding the city.

13. Copenhagen, Denmark

Cost of Living: $1,087/month*
Avg. Rent (1 Bedroom): $1,667/month*

With a population of under a million people, Copenhagen still manages to loom large in the global public imagination. Known for its elegant, minimalist Scandinavian design and kind people (who speak perfect English), it’s a highly desirable place to live.

Copenhagen, Denmark ©Nick N A/Shutterstock.com

Like other Scandinavian countries, Denmark taxes its citizens at a much higher rate than that of the United States. However, these higher tax rates allow for better social services such as subsidized healthcare and education, so that its residents don’t need to worry about creating their own safety net.

14. Vancouver, Canada

Cost of Living: $967/month*
Avg. Rent (1 Bedroom): $2,200/month*

Not to be confused with the smaller town of Vancouver, Washington, in the United States, Vancouver is the largest city in British Columbia and is recognized worldwide both for its ethnically diverse population and eco-friendly initiatives.

Vancouver, Canada ©Dan Breckwoldt/Shutterstock.com

A city of 662,000 people as of 2021, it has the highest population density of any city in Canada, though this isn’t saying much as compared to cities in the Far East, or even other countries in North America.