What Does the Cost of Living Include?
When comparing costs between the United States and the United Kingdom, consumers focus on housing, food, and utility expenses. Since the U.S. is forty times larger than the U.K., costs depend on where individuals and families reside.
In 2024, rent prices in London are 29.5% lower than in New York City, but overall purchasing power in London is 24.2% lower than in New York.
Key Takeaways
- In 2024, rent prices in London are 29.5% lower than in New York City.
- The U.S. is forty times larger than the U.K., so costs depend on where individuals and families reside.
- The average monthly salary after taxes is 42% less in London than in NYC.
Comparing Costs in the U.S. vs. the U.K.
- In 2024, groceries prices in the United Kingdom are 26.4% lower than in the United States.
- As of Jan. 2024, gasoline costs in the U.K. for the equivalent of one U.S. gallon is 8.18 USD compared to the nationwide average in the U.S. per gallon cost of 3.45 USD.
- Medical care is provided through the National Health Service, and prescription medicine costs are heavily subsidized. About 10% of residents and some ex-pats buy private health insurance that enables them to skip long waiting times for some specialist appointments.
- Utility costs in the United Kingdom for utilities are approximately 50% higher than in the United States.
- Internet in the U.K. is 47% cheaper for residents than for those in the U.S.
- Monthly private preschool or kindergarten costs are 23% lower in London than in New York.
The average monthly salary after taxes is 42% less in London than in NYC.
How Economists Measure the Cost of Living
When economists or statisticians measure a country's or region's cost of living, they look at the amount of money a consumer needs to reach an average lifestyle. The cost of living measures how much food, shelter, clothing, healthcare, education, fuel, and miscellaneous goods and services can be bought with one currency unit.
In 2023 global prices rose by 7.4% on average. The most expensive cities include Zurich, Singapore, New York City, and Geneva.
What's the Most Expensive Neighborhood to Live in London?
Knightsbridge and Chelsea were the most expensive areas to live in London in 2023.
What's the Most Expensive Neighborhood to Live in New York City?
In 2023, the most expensive areas to live in New York City included Noho, Hudson Yards, Tribeca, Central Park South, and Nolita.
What's the Average Price per Square Foot in the U.S.?
The median listing price per square foot for housing sales in the United States is $221 as of Nov. 2023, according to data from the Federal Reserve Bank of St. Louis.
The Bottom Line
The cost of living in the United States, compared to the United Kingdom, varies from city to city, with New York and London the most expensive cities. Economists measure a country's cost of living based on the money a consumer needs for food, shelter, clothing, healthcare, education, fuel, and miscellaneous goods and services.
FAQs
Both nations have a cost of living that varies greatly depending on where you live. However, you can expect that there will be a higher cost of living in the US than the UK. Data shows that the cost of living is 0.49% lower in the UK than the US. This difference is even greater in cities that are expensive to live in.
Is it cheaper to live in the UK or USA? ›
While life in the UK generally is cheaper than in the US, the US offers more affordable public transport, petrol, and vehicles. Single-journey bus tickets are 20.4% more expensive and petrol is 88% more expensive in the UK. The table shows how the two countries compare.
How much does a house cost in the UK compared to the US? ›
Regardless of where you are on the property market, according to the UK Land Registry stats, buying a home in the UK costs an average of £291,385. (as of September 2023). On the flip side, the average cost of a home in the USA currently stands at USD 380,000 (£297,650), marginally higher than in the UK.
Are groceries more expensive in the UK or the USA? ›
During our visits in February 2023, we found that prices in the grocery stores were relatively affordable. However, some items, like eggs, were significantly cheaper in the UK and, overall, our shopping list would cost us far less in the UK.
How much is a gallon of milk in England? ›
2 pints is 80p, 4 pints is £1.10. Going by that, a gallon of milk will cost you between £2.20 and £3.20.
Is it worth moving to the UK from the USA? ›
Conclusion. Moving to the UK is a wonderful decision to make, old bean (friend,) and by this point you should have all the knowledge you need to make the jump to life across the pond. You can look forward to excellent healthcare, education, and entertainment while living in the UK.
How much is rent in the UK in US dollars? ›
Rent: The average rent that you will pay in UK varies depending on where you live and the type of accommodation you have. A one-bedroom flat averages at £758 (~$1000 USD) per month if you're in the city; £614 (~$810 USD) if you're outside of the city. It may be more if your energy costs are included in the rent.
Is rent cheaper in England than America? ›
Housing in the UK is generally cheaper than in the US, and the average one person rent in the UK is £880. Meanwhile, a family would expect to pay £1,550 a month. There is a huge amount of variation depending on where you live in the UK.
Can you buy a house in the UK as an American? ›
There are no legal restrictions on American expats buying property in the UK. Foreigners and non-residents can also get a mortgage in the UK. Americans with less than two years' residency in the UK and without a job may face more challenging conditions, including a bigger deposit to secure a UK property mortgage.
Are houses in UK overpriced? ›
The UK's “expensive, cramped and ageing” housing stock fares poorly compared with other advanced countries, analysis by a thinktank suggests. Households are paying more than other countries – but getting less in return, the Resolution Foundation said.
Restaurants are increasing prices as they try to boost profits following pandemic restrictions amid high food price inflation, rising wages and energy cost increases.
Is New York more expensive than London? ›
Even though New York is more expensive, salaries tend to be higher than in London. Consumer Prices: London's consumer prices are 16.52% lower than New York City (without rent). Rent Prices: Rent prices in London are 30.45% lower than in New York City.
What is the average cost of living in the UK per month? ›
The average monthly cost of living for a family of four in UK is $3,135 (£2,268) without rent. The average monthly living expense for a single person or student in UK is $900 (£651) without rent.
What country has the lowest cost of living? ›
The cheapest places to live are Pakistan, Egypt, Nepal, Bhutan, and Burundi. In these states, a person needs less than $430 per month to live comfortably.
Can an American citizen live in the UK? ›
Requirements for American citizens
Americans hoping to move to the UK have a bit more of a structured process and will need to obtain a visa. The most common type of visas are work and family visas. If neither applies in your case, unfortunately it will be very difficult to move to the UK.
Are wages higher in the US than the UK? ›
According to The Times, the average wage in America is $77,000 (£61,000), much more than the UK average of £41,000.
Is it cheaper to retire in the UK or USA? ›
According to cost of living data aggregator Numbeo, the cost of living in the UK is 15.3% lower than the U.S. on average. In addition, rent is nearly 35% cheaper. That said, costs vary around the country.
