With unbelievably varied landscapes and ecosystems, an incredible mix of cultures, and an undeniable influence on the world, the United States is an attractive place to live. If you are one of the many people in Britain thinking about pursuing an American dream in terms of work, study, or retirement, you need to carefully consider the cost of living in the US vs UK. While London and New York have a reputation for being expensive, how does life in the rest of these countries compare?
The currencies of the UK and the US
The UK’s currency is known as Sterling, commonly known as the Pound, and the currency code is GBP. Sterling’s units of account are Pounds (£) and pennies/pence, with one Pound being subdivided into 100 pennies. Banknotes are available in £5, £10, £20, and £50 denominations, and coins are available in 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2 denominations.
The currency in the US is the United States Dollar ($), and it is known for being the world’s primary reserve currency as per the Bretton Woods Agreement toward the end of World War II. The Dollar is the world’s most widely used currency in international transactions. One Dollar is subdivided into 100 cents. Banknotes are available in denominations of $1, $2, $5, $10, $20, $50, and $100, with now-discontinued $500, $1,000, $5,000, and $10,000 possibly still in circulation and still legal tender. Coins are available in denominations of 1¢, 5¢, 10¢, 25¢, 50¢, and $1.
Where to live in the UK vs the US
The cost of living in the US vs UK varies from region to region and city to city. When it comes to where to live in the UK vs the US, London is undoubtedly the UK’s most expensive city, and the same can be said for New York City in the US. Rental and property prices are much lower in smaller towns and cities, even if those places do not offer the lifestyle or opportunities that cities such as New York and Los Angeles do.
How much does accommodation cost in the UK vs the US?
Accommodation prices are one of the areas in which we see a stark difference in the cost of living in the US vs UK. Generally speaking, rent prices in the UK are 35.1% lower than in the US. Looking more closely, we find that rental prices in New York City are 50.7% higher than in London. That said, purchasing property in the US usually is cheaper than in the UK. The table below offers a general overview of the cost of accommodation in both countries.
| United Kingdom | United States | Difference | |
| Monthly rent for 1 bedroom apartment (city centre) | 1,087.04 $ (902.56 £) | 1,705.53 $ (1,416.08 £) | -36.3% |
| Monthly rent for 1 bedroom apartment (outside centre) | 833.51 $ (692.05 £) | 1,374.69 $ (1,141.39 £) | -39.4% |
| Monthly rent for 3 bedroom apartment (city centre) | 1,933.06 $ (1,605.00 £) | 2,842.83 $ (2,360.37 £) | -32.0% |
| Monthly rent for 3 bedroom apartment (outside centre) | 1,450.21 $ (1,204.09 £) | 2,245.02 $ (1,864.02 £) | -35.4% |
| Price per square meter to buy apartment (city centre) | 5,296.19 $ (4,397.37 £) | 4,499.71 $ (3,736.06 £) | +17.7% |
| Price per square meter to buy apartment (outside centre) | 3,898.99 $ (3,237.29 £) | 3,030.77 $ (2,516.41 £) | +28.6% |
How much does transport cost in the UK vs the US?
The cost of public and private transport is one area that bucks the trend when it comes to the cost of living in the US vs UK. While life in the UK generally is cheaper than in the US, the US offers more affordable public transport, petrol, and vehicles. Single-journey bus tickets are 20.4% more expensive and petrol is 88% more expensive in the UK. The table shows how the two countries compare.
| United Kingdom | United States | Difference | |
| Single bus ticket | 3.01 $ (2.50 £) | 2.50 $ (2.08 £) | +20.4% |
| Monthly public transport ticket | 78.55 $ (65.22 £) | 70.00 $ (58.12 £) | +12.2% |
| Petrol (1 litre) | 1.88 $ (1.56 £) | 1.00 $ (0.83 £) | +88.0 % |
| Volkswagen Golf | 26,496.80 $ (22,000.00 £) | 25,000.00 $ (20,757.23 £) | +6.0% |
| Toyota Corolla | 26,801.23 $ 26,801.23 $ | 23,230.28 $ (19,287.84 £) | +15.4% |
What is the cost of living in the UK vs the US?
The cost of living in the US vs UK becomes clearer when you look at the prices of basic food items, other groceries, and various services and lifestyle options. Consumer prices are 15.9% lower in the UK than they are in the US, not including rent. When rental prices are included, UK consumer prices are 23.1% lower than in the US. UK grocery prices are 33.6% lower than in the US, and UK restaurant prices are 7.2% lower than in the US. That said, the UK’s local purchasing power is 13.8% lower than in the US. All these are important considerations if you are thinking about moving to the US.
| United Kingdom | United States | Difference | |
| Milk (1 litre) | 1.20 $ (1.00 £) | 1.02 $ (0.85 £) | +17.8% |
| Bread (500g loaf) | 1.23 $ (1.03 £) | 3.26 $ (2.71 £) | -62.1% |
| Eggs (12pk) | 2.52 $ (2.09 £) | 4.03 $ (3.35 £) | -37.6% |
| Water (1.5 litre bottle) | 1.19 $ (0.99 £) | 1.92 $ (1.60 £) | -38.1 % |
| Chicken Breast (1kg) | 6.86 $ (5.70 £) | 11.90 $ (9.88 £) | -42.4 % |
| Cappuccino (regular, in a restaurant) | 3.53 $ (2.93 £) | 4.66 $ (3.87 £) | -24.2 % |
| Beer (500ml, in a restaurant or pub) | 4.82 $ (4.00 £) | 5.00 $ (4.15 £) | -3.6% |
| Cinema ticket | 12.04 $ (10.00 £) | 12.00 $ (9.96£) | +0.4% |
| Gym membership (monthly) | 37.53 $ (31.16 £) | 42.00 $ (34.87 £) | -10.6 % |
| Preschool/ Kindergarten (monthly) | 1,251.25 $ (1,038.90 £) | 1,165.70 $ (967.87 £) | +7.3% |
| Primary School (yearly) | 16,399.63 $ (13,616.43 £) | 16,576.79 $ (13,763.52 £) | -1.1% |
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