Is it Cheaper to Live in Europe?

For many years, the allure of cheaper living in the United States drew tourists and expatriates from the UK and Mainland Europe. However, as of recent years, only a few highly affluent nations, such as Monaco, Switzerland, and Luxembourg, remain more expensive than Europe.

Cost of Living in London vs. US Cities

According to statistics from Numbeo, London has become more expensive than locations such as Hawaii and Los Angeles. This review suggests that even straight renting in London is less expensive compared to major American cities. The comparability of costs is particularly true beyond the ultra-luxury segment.

Personal Experience in Europe

Loading personal stories, I continue to examine the cost of living scenario between Europe and the US from a personal perspective. Living in Latvia during warmer months and in Umbria/Tuscany, Italy, during the colder months, has proven significantly less expensive relative to the US.

Even in a rural or suburban area, an equivalent home in the US would cost me substantially more than what I pay in Europe. Food, taxes, and fuel expenses are also considerably lower. Interestingly, my car insurance is far cheaper in Europe, and healthcare costs are much more affordable compared to what US counterparts experience, such as exorbitant pet medical bills.

Despite being double in cost, fuel does not significantly impact my traveling habits. For instance, clothing generally tends to be cheaper in the US, and electronic goods are similarly less expensive. Still, electric utilities are comparable, and car insurance in Europe is notably less costly.

European Economies: A Different Consumption Model

A noteworthy aspect of living in Europe is the consumption-based economics played out in different ways compared to the US. The concept of the 'keeping up with the Joneses' or the pressure to buy on credit is not as prevalent in these regions. I no longer carry a credit card and have not needed one for quite some time. Advertising aimed at promoting unnecessary purchases is minimal. Instead, many cultural norms in these areas encourage only buying items for which one has the immediate funds available.

In my current residence in Italy, I live in a comfortable 3-bedroom 4-bath home constructed over 200 years ago, with a 11th-century wall. My home is strategically positioned, overlooking a medieval village, providing a picturesque living environment. Meanwhile, in Latvia, I reside in a small, completely renovated apartment in the suburbs of Riga.

Staying in the US at a reasonably comfortable level, especially in comparable settings, would require at least $100,000 per year. This transformation in lifestyle has been a significant factor in my decision to continue residing in these European regions.

Visual Examples of My European Home

To provide a more tangible understanding, I have included a few more pictures from my surroundings: