What Cost of Living Numbers Miss

A city's 'average rent' might combine central luxury apartments with distant studio flats. The number you see may not reflect what you would actually pay.

Within a single city, rent can vary 2-3x between neighborhoods. The average tells you little about specific areas.

The same applies to food, transport, and other categories. Your actual costs depend on choices the average cannot capture.

Rental deposits often require 2-3 months rent upfront. This can mean thousands before you even move in.

Furniture costs if apartments are unfurnished. Basic setup can cost as much as several months of rent.

Agency fees, connection fees for utilities, and bureaucratic costs add up. These are real expenses that do not appear in monthly comparisons.

Many cost comparisons focus on daily expenses. Healthcare and insurance may be missing entirely or reduced to a token line item.

Insurance premiums vary widely by age, health, and coverage level. A 25-year-old and a 55-year-old face very different costs.

Out-of-pocket medical expenses are hard to predict. Dental work, prescriptions, and unexpected care can add substantially to costs.

Two people in the same city can spend vastly different amounts. Eating out daily versus cooking at home. Central apartment versus suburban flat. Car versus public transit.

Cost data assumes some 'typical' lifestyle that may not match yours. If you work from home, commute costs matter less. If you entertain often, restaurant prices matter more.

Your spending patterns from home may not translate directly. Some habits cost more abroad. Others cost less. The net effect is personal.

If your income is in one currency and expenses in another, exchange rates matter. A 10% currency shift changes your effective cost of living by 10%.

Cost comparisons are snapshots at one exchange rate. By the time you move, the rate may have changed significantly.

This is especially relevant for remote workers paid in one currency while living in another. Your real costs move with exchange rates.

A €1,000 apartment in one city may be very different from a €1,000 apartment in another. Size, condition, location, and amenities vary.

Food prices may be lower, but product quality or selection may differ. 'Cheaper' does not always mean 'equivalent but less expensive.'

Services can be cheaper but slower, less convenient, or lower quality. The tradeoff matters but does not appear in price data.

Income tax rates vary by country, income level, and residency status. A headline tax rate tells you little about your actual burden.

Social contributions, local taxes, and other levies add to the picture. Some countries have low income tax but high other taxes.

Tax treaties, foreign income rules, and residency thresholds create complexity that simple comparisons cannot capture.

Cost of living changes. Rents in popular cities can rise 10-20% in a single year. Data from even two years ago may be significantly off.

Exchange rates at data collection time may differ from current rates. This compounds the age problem.

Check when data was collected. Recent data is more useful than older data, even from a 'reliable' source.

Talking to people already living there provides better data than aggregated averages. Expat forums, social media groups, and direct contacts give practical information.