Is Auckland or London More Expensive to Live In?

When it comes to deciding between Auckland and London, the costs of living in both cities can be quite high, though they do have some notable differences. While London is generally more expensive, Auckland is not far behind, featuring high rent but cheaper grocery prices. This article will delve into a detailed comparison, analyzing the cost of living, housing, and overall expenses in both cities.

The Cost of Food Shopping

In terms of food shopping, Auckland tends to be more expensive in absolute terms. This has been the case over the past two decades. Despite NZ's agricultural advantages, staple items like groceries often cost more in Auckland than in other parts of New Zealand. There have been instances where the same bottle of NZ wine was found to be one-third more expensive in Auckland compared to London. This price discrepancy has prompted Kiwis to grumble about the dominant position held by two major retail operators. However, the government is attempting to address this issue, but no substantial changes have been implemented yet.

Housing and the Housing Ladder

The housing landscape in Auckland and London is quite different. Housing stock can be compared in a complex manner, as the types of properties vary significantly. In Auckland, you often find freestanding bungalows with decent-sized gardens in suburban areas. This is in stark contrast to London's predominantly terraced housing. However, it is also true that it is much harder for young people to enter the housing market in Auckland. Median salaries in Auckland are around NZ$59,000, but the average house price is approximately NZ$1,000,000 (￡500,000). This means an average house costs around 11 years of earnings for the average person.

In London, the average income is around ￡34,500, and the average house price is ￡479,000. This translates to a house costing almost 14 years of earnings for the average Londoner. The high cost of housing in both cities makes it challenging for many young professionals to purchase a home, leading to a trend of shared living arrangements among young people in Auckland.

Combined Cost of Living in Auckland vs London

Both Auckland and London are extremely expensive cities to live in, mainly due to the high cost of housing. The table below summarizes key figures for comparison:

City Average Income (NZ$) Average House Price (NZ$) House Price as % of Income (Years) Auckland 59,000 1,000,000 11 London 34,500 479,000 14

|Summary: While London has a slightly lower average income, the overall cost of living is comparable to Auckland due to the high house prices. Both cities present significant challenges for young professionals looking to establish themselves and settle down.

Conclusion

Both Auckland and London present high costs of living, with housing being the primary expense. Despite London typically being more expensive, Auckland is relatively close in cost, particularly when it comes to residential property. Understanding these differences can help individuals make more informed decisions when considering which city to live in, based on their personal financial situation and lifestyle preferences.

Key Takeaways: London is slightly more expensive overall. Auckland has cheaper grocery shopping but more expensive housing. High housing costs are the main driver of the high cost of living in both cities.