London and New York. Two cities that define ambition, opportunity, and the art of expensive living. They’re often compared for their energy, culture, and global influence, but there’s one comparison that never gets old: which city is more expensive to live in?
Both have that irresistible, big-city energy: the feeling that something exciting is always happening just one train stop away. Not so exciting, however, are the expenses that would make even a well-paid professional wince at their bank statement. Still, they’re magnets for dreamers, freelancers, and global workers who want to live at the centre of everything.
So, you want the old-world charm of London, with its cobblestones, museums, and rainy-day cafés? Or the nonstop buzz of New York, where everyone always seems to be on the move?
This is a detailed breakdown of the actual living costs in each city. I have everything covered: rent, food, transport, utilities, and even childcare. I even touched on how Grey can help you manage your money.
Grab your calculator, let’s find out which city really costs more to call home.
Rent is where both cities truly test your patience and financial endurance. No matter how you slice it, housing eats up the biggest portion of anyone’s monthly budget, and both London and New York are notorious for it.
In London, a one-bedroom flat in the city centre, areas like Shoreditch, Southbank, or Notting Hill, costs around $3,100 per month. If you cross the Thames or move a few Tube stops outward to areas like Stratford or Greenwich, and rent dips to around $2,300. While that’s still steep, it’s relatively manageable compared to New York’s rental market.
In New York, a one-bedroom apartment in Manhattan or prime Brooklyn averages around $4,100 monthly, with similar spaces in Queens or the Bronx costing closer to $2,500. That’s a nearly 30% higher average rent than in London for central locations, though the gap narrows in outer boroughs.
Larger homes follow the same trend. A three-bedroom apartment in central London costs roughly $5,100, compared to a staggering $7,800 in Manhattan. It’s this kind of price tag that makes flat sharing so common. Even outside the city centres, the difference remains: an average of $3,700 in London versus $5,100 in New York.
To put it simply, you’ll need to earn about $100,000 a year to rent comfortably in central London, but closer to $130,000 - $150,000 to manage the same standard of living in New York. In both cases, rent alone can take up 40 - 50% of your monthly income if you’re not careful.
Verdict: London is expensive, but New York is on a whole other level. The average renter in NYC spends roughly 20 - 25% more than their London counterpart for the same space.
Also read: Cost of living in London
When it comes to buying a home, both cities make you pay dearly for the privilege of saying “I live here.”
In London, buying property is often less about owning a space and more about investing in history. Yeah, it’s that expensive.
A square metre of city-centre real estate costs around $21,250, making it one of the most expensive property markets in the world. That means a modest 70 m² flat in Central London (think Shoreditch, South Kensington, or Westminster) could cost upwards of $1.48 million before taxes or fees. Step just outside the heart of the city, say, to areas like Stratford, Walthamstow, or Greenwich and the average drops to $11,000 per square metre, bringing that same flat down to about $770,000.
New York, surprisingly, comes in slightly cheaper per square metre, around $15,500 in the city centre. A 70 m² apartment in Manhattan would cost approximately $1.08 million. However, buyers there face higher ongoing costs, including property taxes averaging 1.7% per year, as well as maintenance fees that can add several thousand dollars per month in co-op or condo buildings. Outside central boroughs like Brooklyn, Queens, or the Bronx, property prices average $11,100 per square metre, roughly $777,000 for the same 70 m² flat, which is nearly identical to London’s suburban equivalents.
But price per square metre doesn’t tell the whole story. In London, you’ll often find smaller, older properties that come with preservation restrictions, while New York’s market leans toward high-rise living with modern amenities but sky-high building costs.
If you’re buying as an investor, rental yields are another factor: London averages 3 - 4% annually, compared to 4 - 5% in New York.
Verdict: London wins for long-term prestige and property value stability, but New York offers more substantial returns and newer builds for your money. Either way, in both cities, you’ll need to plan well for a purchase.
Also read: Cost of living in Paris
If rent is where London and New York empty your wallet, food is where they tempt you to open it again. Both cities are global dining capitals, home to celebrity chefs, street food icons, and everything in between. Regardless of your preference, whether grabbing a quick bite or splurging on fine dining, the numbers tell a fascinating story about how much it really costs to eat well in each city.
In London, an inexpensive meal at a local café or casual restaurant costs around $27, while in New York, that same plate would be roughly $25. It’s a negligible difference, well, until you start dining out regularly. A three-course dinner for two in a mid-range restaurant costs approximately $106 in London, compared to $150 in New York. That’s almost a 40% jump, showing how New York’s dining scene rewards indulgence but punishes your credit card.
For the average person eating out three to four times a week, that difference soon becomes a problem. You could spend $450 - $600 monthly on casual meals in London or nearly $700 - $900 in New York, and that’s before drinks or tips.
Fast food and casual chains paint a slightly different picture. A McDonald’s combo meal costs $11 in London and $14 in New York, making the UK marginally friendlier to quick, low-cost dining. Drinks, however, are where the playing field levels out. A domestic beer costs around $9 in London and $8 in New York, while an imported beer might flip the comparison, $8 in London versus $10 in New York.
And if you’re one of those people who can’t start the day without caffeine (no judgement here), you’ll pay $5.50 for a cappuccino in London and around $6 in New York. Over a month of daily café runs, that’s about $165 vs. $180, proof that even your coffee habit costs more in Manhattan.
Verdict: London wins if you’re eating on a budget, or prefer home-cooked meals and pub lunches over fine dining. But New York outshines for culinary variety: you’ll find everything from $3 pizza slices to $300 tasting menus, often on the same block.
When it comes to everyday shopping, you’ll find plenty of options in either city, and how far your grocery budget stretches depends on what you buy and where you buy it.
In London, chain supermarkets like Tesco, Sainsbury’s, and Aldi offer solid value, while Waitrose or Marks & Spencer cater to those who don’t mind paying a premium for imported or organic goods. A typical grocery basket, which will include milk, bread, rice, eggs, and fresh fruit, comes to around $40 - $50 weekly for one person, or roughly $200 a month if you mostly cook at home. Prices stay fairly stable, though imported foods (like cheese or wine) push the total higher.
A litre of milk costs $1.70, and a loaf of bread averages $2, which is affordable by big-city standards. But a dozen eggs go for about $4.70, and chicken fillets hover around $9 per kilo. Meat and dairy tend to be where your grocery bill spikes. On the brighter side, locally grown produce like apples ($3.50/kg) or bananas ($1.70/kg) remains budget-friendly, especially at weekend markets or local greengrocers.
New York, however, turns grocery shopping into an Olympic event, one that your wallet rarely wins. Supermarkets like Whole Foods, Trader Joe’s, and Key Food charge noticeably more, with prices varying wildly by borough. Expect to spend around $350 - $450 per month if you cook regularly, and easily more if you shop organic or prefer imported brands.
Basic items tell the story well: a loaf of bread is $4.90 (more than double London’s), and eggs cost $7.20 per dozen. Even staples like rice ($8.20/kg) and milk ($1.60/L) come with a New York markup. Meat and produce are consistently higher too, as chicken fillets average $16/kg, and apples hit $7.50/kg, nearly twice London’s cost.
The gap widens further when you factor in alcohol and tobacco. A bottle of wine costs $11.50 in London but $18 in New York. Cigarettes? $4.50 in London versus a staggering $19 in NYC, making it one of the most expensive places in the world for smokers.
Verdict: London gives you more value for money, especially if you cook often.
Let’s be honest, both cities have world-famous public transport systems. London’s red double-decker buses and the New York subway come to mind almost immediately.
In London, getting around isn’t cheap, but it’s incredibly well-connected. A one-way Tube or bus ticket costs around $4.20, and a monthly travel pass averages $240, still one of the most expensive in the world. Daily commuters can save money using Oyster cards or contactless payments, which cap your daily fare at around $10 - $15, depending on the zones.
Taxi rides are another story. A standard black cab starts at $5.50, but the fare rises quickly during rush hour or late at night. Ride-hailing services like Uber tend to be slightly cheaper, though not by much. Fuel costs around $1.80 per litre, making car ownership in London more of a luxury than a necessity. Due to the congestion charges, parking fees, and insurance, most people stick to public transport or cycling.
Over in New York, transportation is slightly more affordable, at least on paper. A single subway or bus fare costs $3, and a monthly MetroCard is $133, nearly half of London’s cost. For daily riders, that’s a massive saving. Taxis start around $5, and while surge pricing can spike fares in Manhattan traffic, ride-sharing apps like Lyft and Uber are everywhere. Fuel is far cheaper, averaging $0.90 per litre, making car ownership less punishing for those outside the boroughs.
Verdict: New York wins for affordability, hands down. But London’s system is better integrated. If you value comfort and connectivity, you’ll tolerate London’s higher costs. But if saving money matters more, New York’s MetroCard is still the golden ticket, even if it sometimes comes with the scent of pizza and street jazz.
Also read: Cost of living in Mumbai
Utilities might not be the most exciting topic, but they’re what truly determine whether your apartment feels like home or just an expensive box with windows.
In London, basic utilities for an 85 m² apartment — electricity, heating, cooling, water, and garbage — come to around $330 per month. Prices fluctuate depending on the season; winter heating bills can push the cost closer to $400, while the summer months offer some relief. What’s great, though, is that energy-efficient buildings are becoming more common, especially in newer developments outside central London.
The internet is reasonably priced by global standards. A high-speed plan (60 Mbps or more) averages $42, and most providers offer reliable service. Mobile plans are also competitive, with rates starting at around $19 per month for calls, texts, and 10 GB or more of data. That’s significantly cheaper than in the U.S., and it’s one of the few areas where London actually saves you money.
Meanwhile, in New York, utilities can be a mixed bag. The average cost for the same 85 m² apartment is around $200 per month, but don’t let that fool you; many older buildings in New York have outdated systems, meaning you’ll likely need to budget extra for heating or air conditioning, especially during extreme weather. Some apartments include water and heat in the rent, but electricity can still add up fast.
Where New York really pulls ahead (or falls behind, depending on how you see it) is in connectivity. Internet costs about $66.60 per month, and while speeds are great, it’s nearly 60% more expensive than in London. Mobile plans are also higher, averaging $62 monthly, roughly three times London’s rate.
Verdict:. In London, you’ll pay less for mobile and internet services and enjoy reliable utilities across the board. New York’s older infrastructure and higher data costs make it the slightly more expensive option, especially for remote workers or freelancers who depend on stable, high-speed connections.
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The one thing Londoners and New Yorkers take seriously, besides their morning coffee, is staying active and entertained. However, depending on where you live, the cost of staying fit (or just having fun) can vary significantly.
In London, Gym memberships average $64 a month, and you’ll find everything from sleek chains like PureGym and Virgin Active to boutique studios with yoga, spin, or boxing. Public sports centres are affordable too; some charge as little as $8 per session for swimming or fitness classes. If you’re into tennis, court rentals on weekends cost around $25 an hour, and for the less sporty, catching a movie at your local cinema is about $20.
What’s great about London is that so many of the fun activities are free; long runs through Hyde Park, weekend cycling along the Thames, or joining a neighbourhood football group — everyone loves Sunday League. Outdoor activities thrive in London, especially in the summer when the weather finally cooperates.
New York, on the other hand, turns fitness into a high-end affair. A basic gym pass can cost $130 per month, with premium clubs like Equinox charging up to $250 for memberships that include saunas, classes, and towel service (because, of course, it’s New York). Tennis court rentals are pricier too, averaging $59 per hour, and even outdoor recreation in Central Park isn’t entirely free if you want to join an organised sport or use maintained courts.
Entertainment prices are roughly comparable to those in London. A cinema ticket is $20, but New York’s nightlife, concerts, and Broadway shows can make that number skyrocket quickly. A night out with drinks, dinner, and a show can easily top $250, especially in Manhattan.
Verdict: London offers better value and more free fitness options, while New York delivers more variety and experience, if you’re willing to pay the price.
If you plan on raising kids in either London or New York, brace yourself, childcare is one of the biggest expenses you’ll face, no matter which side of the Atlantic you’re on.
In London, a full-day private preschool costs around $2,550 per month, depending on the borough and curriculum. Central neighbourhoods, such as Kensington or Islington, tend to be pricier, while outer zones, like Croydon or Walthamstow, have slightly lower fees. London offers a diverse range of childcare options, including local nurseries, Montessori schools, and nanny shares. The UK government also provides subsidies for working parents, with 15 to 30 hours of free childcare available for eligible children aged three to four.
Although primary education is free for state-funded schools, tuition in private schools averages $27,400 per year. However, top-tier institutions such as the American School in London or Southbank International can exceed $35,000 annually. Still, the structure and global curriculum often justify the price.
New York, however, raises the stakes and the fees. Preschool in the city costs approximately $2,230 per month, which may sound slightly lower than in London, but the difference quickly fades once you factor in registration fees, supplies, and additional care hours. For many working parents, hiring a nanny becomes the norm, with costs ranging from $3,000 to $4,500 per month, depending on the hours and experience required.
Private education is where the gap truly widens. An international or private primary school in New York costs a staggering $58,300 per year on average, making it one of the most expensive cities in the world for schooling. Even mid-tier private schools range between $35,000 and $45,000 annually — roughly equivalent to a small mortgage.
Choosing between London and New York is a personal decision. You’ll need to consider the trade-offs you’re willing to live with: rent versus salary, dining versus groceries, public transport versus car costs, and the necessary but often overlooked realities of paying for childcare and schooling.
If you earn abroad or have income in foreign currencies, those trade-offs start to look a little different. Suddenly, a higher salary in New York might cover steeper rents and school fees; a London paycheck might stretch further on everyday items or childcare. The smart move is to think of your finances as a system: how you get paid, how you hold money, and how you convert it all matter as much as the numbers on a job offer.
The right platforms make a real difference. Holding the right currency, timing conversions, and avoiding hidden fees can save you hundreds, even thousands, of dollars a year. For remote workers, freelancers, and families juggling international income and local costs, a multi-currency account with transparent rates and fast payouts is no longer a nice-to-have but a necessity.
That problem exactly is what Grey solves. It doesn’t matter if you’re paid in dollars, pounds or euros, you can receive funds on Grey, hold them in the currency that works best for you, and convert or withdraw at competitive rates, quickly and transparently. That means less guesswork when you’re planning rent, school fees or monthly bills in either city, and more control over how much of your hard-earned money actually reaches you.
Open a free Grey account or download the app to keep more of your income and, by extension, spend it on the things that truly matter.
Disclaimer: This article is based on researched data and is intended to give you a general overview of the cost of living in London and New York. The figures provided are estimates gathered at the time of writing and may vary depending on location, lifestyle, and market changes.
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