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It doesn't necessarily have to do with the size, right? I mean, bigger cities are more expensive because they have a higher demand for things due to all the people that what to live there, correct. Does the higher the population automatically mean the higher the cost of living? And what about the population density? Does the more urban (as opposed to spread out suburban) a city is automatically make it more expensive? Doesn't it all boil down to supply and demand? It's just that there is a bigger demand in bigger cities and the urban core is often a very sought after location, making it more expensive and valuable, right? If there were absolutely no demand in Manhattan at all, it could be very cheap, couldn't it? Please help, thanks!
 

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Not really. Some of the world's biggest cities are also quite cheap in terms of cost of living, especially in the developing world. For example, I doubt real estate in Dhaka would be comparable to New York.

Then there are exceptions such as Swiss cities that cost a fortune even though none of them are anywhere in the top 10 for size.
 

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Mơמkƹ͛ƴ∆ґ&#4
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Does the higher the population automatically mean the higher the cost of living?
No.


And what about the population density? Does the more urban (as opposed to spread out suburban) a city is automatically make it more expensive?
No.


Doesn't it all boil down to supply and demand? It's just that there is a bigger demand in bigger cities and the urban core is often a very sought after location, making it more expensive and valuable, right? If there were absolutely no demand in Manhattan at all, it could be very cheap, couldn't it?
Yes.
 

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My question is, why the figures are so important?
They may not be accurate, but most likely be some made-up statistics.

Isn't that better for yourself becoming the most expensive, than talking about the others. :)
 

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Not really. Some of the world's biggest cities are also quite cheap in terms of cost of living, especially in the developing world. For example, I doubt real estate in Dhaka would be comparable to New York.

Then there are exceptions such as Swiss cities that cost a fortune even though none of them are anywhere in the top 10 for size.
Can't vouch for certain, but I don't think he meant the biggest cities in the world, but in relative terms.

Generally speaking, you'll find that the biggest cities in a nation are also its most expensive (if not one of its most expensive).
 

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Often bigger cities only seem more expensive on a direct though often inaccurate comparison with smaller cities. What I mean here, is that the more expensive area's in most cities, large or small are in the more desirable neighbourhoods.

And in many cities around the world, this is the center of town. So as you get closer to the center of town, the price increases. In a large city, there is a higher population of people wishing to live close to the center of town, so as tpe's graph above shows, supply and demand.

Out in the end of the suburbs, the prices may be the same as at the suburbs end of a smaller city, but of cause this would be further out and less desirable. There are other factors as well which means that there maybe two cities in a country of equal population but one is more expensive than the other. Usually this is because the more expensive city may have a greater financial economy than heavy industrial.
 

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Bigger cities aren't always more expensive. For example, Chicago is significantly larger than SF, DC and Boston, and yet it's significantly less expensive than they are.
 

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Same across the pond. Berlin might be (by a considerable margin) the largest city in Germany, but life there - on average - is cheaper than for at least half of the German population.
For comparison, living costs in Berlin are comparable to perhaps 30.000-pop towns in Western Germany, with larger towns and cities in the West being rather more expensive to live in. The most expensive cities in Germany are still generally those with 500.000 people and above (with some exceptions there too), with a few small high-flier smaller cities.

Worldwide, a major factor is whether there is a stable low unemployment figure in that city (in comparison to others). This is definitely a big malus for Berlin in Germany, Chicago in the US and the same in other, similar cases.
 

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Same across the pond. Berlin might be (by a considerable margin) the largest city in Germany, but life there - on average - is cheaper than for at least half of the German population.
For comparison, living costs in Berlin are comparable to perhaps 30.000-pop towns in Western Germany, with larger towns and cities in the West being rather more expensive to live in. The most expensive cities in Germany are still generally those with 500.000 people and above (with some exceptions there too), with a few small high-flier smaller cities.

Worldwide, a major factor is whether there is a stable low unemployment figure in that city (in comparison to others). This is definitely a big malus for Berlin in Germany, Chicago in the US and the same in other, similar cases.
Quite correct in that Berlin is not an expensive city in Germany, but you are making the crucial mistake that many Germans do and only look at the city proper population figures. This is a classic example of why city proper figures are not always reliable. Frankfurt has a smaller city proper than Berlin, but when you add up the metro area it is in fact larger. Frankfurt is one of the largest cities in Germany and one of the most expensive. But I believe it is also topped in the expense league by Munich which has a larger city proper but a smaller metro area.

So year, Germany gets all confusining here.
 

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if at the same develping standard, large city is surely more expensive than smaller ones.
 

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This is a classic example of why city proper figures are not always reliable. Frankfurt has a smaller city proper than Berlin, but when you add up the metro area it is in fact larger.
Eh, you're confusing something there.

Official metro ares in Germany, core regions (for better comparison, leaving aside the rural areas assigned to each), Top 5:
- Rhine-Ruhr : 10.2 million on 7,110 km²
- Berlin/Brandenburg : 4.4 million on 5,370 km² ("Verflechtungsraum Berlin")
- Rhine-Main : 3.4 million on 5,500 km² ("Ballungsraum Frankfurt")
- Stuttgart : 2.7 million on 3,654 km² ("Region Stuttgart")
- Munich : 2.6 million on 5,500 km² ("Planungsregion München")

Even assuming the full metropolitan regions including the rural areas, the order is pretty much the same (Munich and Stuttgart switch places). Said rural areas usually account for 1-3 million people on 10,000 to 30,000 km².

Frankfurt is one of the largest cities in Germany and one of the most expensive.
Actually, Frankfurt isn't even in the top 20 as far as rental costs go, the primary component of living costs in Germany. The Top 20 essentially consists of Munich, Stuttgart and Hamburg with their respective metro areas (in that order), with a couple other cities such as Cologne and Heidelberg also playing in the area above Frankfurt.

This is even more true when one looks at the metro areas; Frankfurt/Rhine-Main isn't particularly high in living costs - perhaps #4 in Germany, perhaps #5. The largest metropolitan area in Germany both by size and population, Rhine-Ruhr, has probably the lowest living costs of any West-German metropolitan area. The metropolitan region Berlin/Brandenburg is the second-largest in Germany btw, and similarly has rather low living costs.

Munich which has a larger city proper but a smaller metro area.
I think you need to look over that again.
 

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Eh, you're confusing something there.

Official metro ares in Germany, core regions (for better comparison, leaving aside the rural areas assigned to each), Top 5:
- Rhine-Ruhr : 10.2 million on 7,110 km²
- Berlin/Brandenburg : 4.4 million on 5,370 km² ("Verflechtungsraum Berlin")
- Rhine-Main : 3.4 million on 5,500 km² ("Ballungsraum Frankfurt")
- Stuttgart : 2.7 million on 3,654 km² ("Region Stuttgart")
- Munich : 2.6 million on 5,500 km² ("Planungsregion München")

Even assuming the full metropolitan regions including the rural areas, the order is pretty much the same (Munich and Stuttgart switch places). Said rural areas usually account for 1-3 million people on 10,000 to 30,000 km².
Ahh.. Metropolitan areas always includes the rural areas which is why they differ from urban areas. This is especially the case in German metropolitan areas because German cities usually have green belts surrounding the various urban areas and tight density within.
Frankfurt's metropolitan region, the Rhein Main has around 5million people.

But please, let's not get into one of the projected debates on what is, what isn't, what should be and what we imagine a metropolitan area in Germany is. It will never end and spoil this thread confusing all the other readers and diverging off topic.

Actually, Frankfurt isn't even in the top 20 as far as rental costs go, the primary component of living costs in Germany. The Top 20 essentially consists of Munich, Stuttgart and Hamburg with their respective metro areas (in that order), with a couple other cities such as Cologne and Heidelberg also playing in the area above Frankfurt.
Actually, I said Frankfurt is one of the most expensive cities in Germany overall, and there are quite a few articles documenting that. However, I will certainly concede that it is quite vague at what exactly is considered expensive and what it is compared to. Most of the surveys take basic costs into account but not incomes which are often higher in more expensive cities.
http://www.toytowngermany.com/lofi/index.php/t69539.html

This is even more true when one looks at the metro areas; Frankfurt/Rhine-Main isn't particularly high in living costs - perhaps #4 in Germany, perhaps #5. The largest metropolitan area in Germany both by size and population, Rhine-Ruhr, has probably the lowest living costs of any West-German metropolitan area. The metropolitan region Berlin/Brandenburg is the second-largest in Germany btw, and similarly has rather low living costs.
Please see my point where I quite clearly mentioned that industrial cities are usually cheaper than financial cities. The Rhein Ruhe metropolitan area is clearly an industrial based region where as Frankfurt is clearly a financial based region.
 

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Actually, Frankfurt isn't even in the top 20 as far as rental costs go, the primary component of living costs in Germany. The Top 20 essentially consists of Munich, Stuttgart and Hamburg with their respective metro areas (in that order), with a couple other cities such as Cologne and Heidelberg also playing in the area above Frankfurt.
The Frankfurt area has the fourth highest rents after Munich, Stuttgart and the souther Rhine-Ruhr (Cologne-Düsseldorf) area.

Mietspiegel 2008
 

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Bigger cities aren't always more expensive. For example, Chicago is significantly larger than SF, DC and Boston, and yet it's significantly less expensive than they are.
Quite true.

Housing & commercial prices go by the law of supply & demand.

Places where people most want to live & work, be they Manhatten, San Francisco, Boston, or Seattle, will always be higher than place where there's little demand.

Detroit's still one of the larger US cities, with more people than Boston or Seattle. But obviously there's not much demand at this point for Detroit's dirt cheap real estate.
 

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Quite correct in that Berlin is not an expensive city in Germany, but you are making the crucial mistake that many Germans do and only look at the city proper population figures. This is a classic example of why city proper figures are not always reliable.
But germans often search their flats by city proper. People who search a flat in Frankfurt, might not include Offenbach in their search, even tough it is just next to Frankfurt and is as close/well connected to Frankfurt's centre as some suburbs on Frankfurt city proper.

In Hamburg people often search by districts. Lets say someone wants to live in the district Winterhude (largely upper middle class with bars, restaurants, designer shops etc.). He most probably wouldn't look for a flat in the neighbouring district Barmbek-Sued, even tough it could save him a few bucks per sq.m and the posh parts of Winterhude are within 10 minutes walking distance.

For house owners the municipal borders can make a big difference as the municipal taxes etc. might be much lower in the suburbs outside the municipal borders of the core city.
 

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I think it all depends on Real Estate. The higher rent is the higher prices at a restaurant or store have to be to make a profit. Simple as that.
 

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But germans often search their flats by city proper. People who search a flat in Frankfurt, might not include Offenbach in their search, even tough it is just next to Frankfurt and is as close/well connected to Frankfurt's centre as some suburbs on Frankfurt city proper.

In Hamburg people often search by districts. Lets say someone wants to live in the district Winterhude (largely upper middle class with bars, restaurants, designer shops etc.). He most probably wouldn't look for a flat in the neighbouring district Barmbek-Sued, even tough it could save him a few bucks per sq.m and the posh parts of Winterhude are within 10 minutes walking distance.

For house owners the municipal borders can make a big difference as the municipal taxes etc. might be much lower in the suburbs outside the municipal borders of the core city.
I'd agree. But I would narrow it down to district or suburb in Frankfurt as well. People would choose in say immobilienscout the city and then suburb as that is the way it is created.

But that is exactly how I searched back in Sydney as well, down to the suburban level.
 

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Then there are exceptions such as Swiss cities that cost a fortune even though none of them are anywhere in the top 10 for size.
Zurich and Bern scored very highly in the last Mercer study.

After living in London for a long time and watched it become more expensive from 1996 to 2008, I'd say fashion is the main difference.

Why fashion? Because rich people decide to live somewhere and drive prices up by not being discerning enough in their spending habits. This creates precedent and the IMPRESSION that there is demand for something which in turn can also create additional demand. It all feeds on itself.

Also the demand for access to rich people also drives up prices of retail rentals.
 
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