Gulf region's second most affordable cost of living in the first half of 2025 found in Kuwait
In the first half of 2025, Kuwait emerged as a more affordable destination compared to New York City, boasting cheaper housing, lower daily expenses, and differences in economic and lifestyle factors.
Key contributing factors include:
- Housing Costs: Renting a one-bedroom apartment in Kuwait City’s center is approximately $807 per month, and outside the center around $612. These figures are significantly less expensive than typical rents in New York City that often exceed $2,000–$3,000 for similar apartments. Property buying prices per square meter are also comparatively lower in Kuwait.
- General Living Expenses: Estimates from July 2025 show monthly costs for a single person in Kuwait at approximately 646 Kuwaiti Dinar (~$2,200 USD), while a family of four might spend around 1,115 Dinar (~$3,800 USD). Although the Kuwaiti estimates note limited data, these amounts generally reflect a lower cost base than New York City, where monthly living costs for individuals and families are considerably higher.
- Economic Factors: Kuwait’s average net monthly salary (~$3,074 USD) suggests a higher purchasing power relative to living costs, helping maintain affordability compared to New York City’s high living expenses and costlier consumer pricing.
- Lifestyle and Local Subsidies: Kuwait’s policies, including subsidies on fuel, utilities, and food, reduce the cost of essential goods and transportation, which are significant contributors to the overall cost of living. In contrast, New York City has high costs for transportation, utilities, and groceries, influenced by its urban density and economic conditions.
- Inflation and Economic Environment: Compared to some Western cities, Kuwait may experience lower inflation on consumer goods, helping maintain more stable and lower prices over time. New York and other U.S. cities have been affected by higher inflation rates impacting everyday expenses.
In the Numbeo Global Cost of Living Index, Kuwait ranked 12th among Arab countries and 247th globally, scoring 42.9 points versus New York’s 100 points. This index compares countries to New York City using six benchmarks, including rent, restaurant prices, grocery prices, and general purchasing power.
While the article does not provide specific information about the cost of living in other Arab countries besides Kuwait, it is worth noting that Kuwait ranked second in the Gulf region for the lowest overall cost of living in the first half of 2025. Switzerland ranks as the most expensive country, with six Swiss cities topping the list of costliest cities worldwide.
In Kuwait, mid-range meals for two average 15 dinars, while budget restaurant meals cost around 2.5 dinars per person. These figures demonstrate that dining out in Kuwait is more affordable compared to New York City.
In conclusion, Kuwait’s lower rents, subsidized essentials, and favorable salary-to-cost ratios contribute to its significantly lower cost of living compared to New York City as of mid-2025. Data limitations on Kuwait’s cost estimates warrant caution, but available information consistently points to more affordable housing and everyday expenses there.
Personal finance considerations would favor moving to Kuwait over New York City, given its significantly lower housing costs, general living expenses, and a higher salary-to-cost ratio. For instance, renting a one-bedroom apartment in Kuwait City's center costs approximately $807 per month, starkly contrasting with the typical New York City rent of $2,000–$3,000 for similar apartments. Furthermore, everyday expenses in Kuwait are estimated to be approximately 646 Kuwaiti Dinar per month for a single person, which is generally lower than New York City's living cost base.
