Living in New York, Boston, or San Francisco: A Costly Affair Comparable to Geneva or Zurich

Living in major US cities like New York, Boston, and San Francisco is becoming more financially demanding. A recent report from Deutsche Bank reveals that these cities are now on par with Swiss cities in terms of living expenses. So, what's driving this surge in costs? Let's dive in to understand the factors behind this trend.

The Rising Costs of US Cities

The Impact of a Strong Dollar and US Exceptionalism

Over the years, US cities have transitioned from being budget-friendly to ranking among the most expensive globally. Factors like a robust tech sector, a strong dollar, and the concept of US exceptionalism have propelled this shift. Jim Reid, the head of global and macro thematic research at Deutsche Bank, attributes this change to the resilience of the American financial sector and the dominance of the US tech industry.

Comparing US Cities to Swiss Counterparts

Historical Trends and Financial Stability

Swiss cities have long been synonymous with high living costs due to the stability of the Swiss franc and low inflation rates. Sectors like banking, finance, and pharmaceuticals contribute to the high living standards in Switzerland. However, US cities are now rivaling these Swiss counterparts in terms of expenses, with New York leading the pack.

City-wise Breakdown of Living Expenses

Insights into Rent and Grocery Costs

In 2025, New York stands out as the most expensive city center to reside in, with a three-bedroom apartment averaging $8,500 per month in rent. Following closely are Singapore, Boston, London, and San Francisco. These cities, along with Zurich, Hong Kong, and Geneva, dominate the list of high rent costs. Additionally, US cities rank among the top spots for grocery expenses.

Future Outlook and Predictions

Forecasting Changes in City Rankings

Jim Reid suggests that due to historical US dollar cycles and evolving policies, American cities may witness a shift in their global rankings in the coming years. While cities like Geneva, Zurich, and San Francisco currently lead in post-tax salaries, there's a possibility of reordering in the future.

When it comes to quality of life, cities like Luxembourg, Copenhagen, and Amsterdam emerge as top performers, offering a balance between high living standards and affordability.

As the cost of living continues to rise, it's essential for residents to adapt and plan their finances wisely. Understanding the driving forces behind these escalating expenses can empower individuals to make informed decisions about where and how they choose to live.

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By: nredmond@insider.com (Nora Redmond)
Title: Living in New York, Boston, or San Francisco: A Costly Affair Comparable to Geneva or Zurich
Sourced From: www.businessinsider.com/new-york-san-francisco-boston-cost-living-switzerland-deutsche-bank-2025-6
Published Date: Wed, 25 Jun 2025 09:24:48 +0000