New York Seizes London's Title of World's Most Expensive City

For two and a half years London owned the title of world's most expensive city, but according to a global research firm New York has overtaken London at a rapid pace.

The UK capital is now third behind New York and Hong Kong, according to global property broker Savills. The research for this status examined the cost for an employee to live in rented housing while working in an office for one year. The average price for New York is $114,010, which rose 2 percent in July from December last year.

“New York was nipping at the heels of London [last December]. They were virtually on par,” Yolande Barnes, head of world research at Savills, told the Wall Street Journal.

London's cost decreased by 11 percent to $100,141. The decrease was due to the drop of sterling and the UK real estate market. The catalyst of this decline came with Brexit, when Great Britain voted to exit the European Union in June.

"Brexit has made London more competitive, at least in terms of cost," Barnes told the Journal.

According to the Wall Street Journal, house prices in expensive London neighborhoods have been declining for more than a year. In New York City however, real estate rents have increased marginally, Barnes said.

Photo Credit: Anthony Quintano via Flickr/Creative Commons