Nestled in the Great Sound of Bermuda sits the tiny capital city of Hamilton. What Hamilton lacks in size it makes up for in cost of living. According to Numbeo’s mid-year Cost of Living Index, Hamilton Bermuda has the highest cost of living in the world. Could this baby-sized city really be the most expensive place to live? Let’s take a closer look.

Small City Costs Big Bucks

Numbeo ranks Hamilton as the number-one most expensive place to live out of 537 cities. Its cost of living is 158.82% higher than Bangkok’s! You’ll spend around $1,670.90 a month there, not including rent. Want a roof over your head?

A one-bedroom apartment in the city center will run you $2,615.00 a month. If you don’t mind living a short way out of town, you can cut the cost to $1,872.73 a month. Total monthly expenses: $3,543.63 at the low end.

What Makes Hamilton So Expensive?

Hamilton has some of the world’s highest prices. Groceries, utilities, transportation, meals out, they’re all some of the most expensive in the world. It’s a common problem among island nations. Everything needs to be shipped in, and infrastructure is difficult to maintain.

Hamilton, Bermuda takes the island-life surcharge to a whole new level. The city has some of the most expensive restaurant prices in the world. Despite the added cost, people still flock to the city. It’s a tax haven for expats. Wealthy tourists still head here to catch some rays.

The Debate Continues

Is this 1,000-resident city really more expensive than cities like Singapore and Tokyo? Not all survey sites seem to agree. Numbeo is just one of many groups that curate cost of living data.

The Worldwide Cost of Living Survey gave the title of “Most Expensive” to Singapore for the fifth year in a row. The consulting firm Mercer found Hong Kong to be the most expensive city for expats. Rankings aside, Hamilton drains bank accounts with the best of ‘em.