Where does it cost more to live – France or the USA? If you’ve ever wondered this, we are here for you. By using multiple technical methods, we will determine where the cost of living is higher. Get ready for the battle of the century: France vs. the USA!
According to multiple indexes, including the cost of living with and without rent and the average yearly income, the cost of living is estimated to be 6% cheaper in the USA than it is in France.
Big Mac Index
Let’s start with an index that is as serious as it sounds ridiculous: the Big Mac Index.
The Big Mac Index is an economic theory proposed by The Economist that uses Big Macs as a metric to compare local purchasing power and cost of living.
A Big Mac costs the same amount to make in every country; therefore, we can establish the income of a person by the number of Big Macs they can afford per hour.
The longer you have to work to pay for a Big Mac, the higher the cost of living is in your country.
While this can’t really give us detailed information, it does give us a fairly accurate general idea.
The French Big Mac Index is 4 per hour and the American Index is 5.4 per hour.
Therefore, the cost of living in France (according to the Big Mac Index) is 36% higher than it is in the USA.
(source: The economist)
Average Yearly Income
We’ve had our appetizer, so here’s the next course: the average yearly income. This one is pretty straight-forward: the more you earn, the lower the cost of living is compared to your budget.
The average yearly income in the USA is €59,950, while the average yearly income in France is only €37,102. This means that the average American has 62% more buying power than the average French citizen.
(source: worlddata)
Cost of Living Index
This one is a bit more technical. It’s an official index that takes multiple factors into account: transportation, healthcare, monthly bills, taxes, clothes, entertainment, education… In other words, anything that costs money.
But, very importantly, it doesn’t include rent and property purchases.
To determine a place’s rating, its costs are compared to those in the expensive city of New York City.
The USA’s national index is 71.05 while the French national index is 74.14.
Therefore, the cost of living is 4% higher in France than it is in the USA.
(source: CEOWorldMagazine)
Manual Comparison
Having all those statistics is nice, but what do they actually represent?
In this last category, we will give you something more approximate and less official, but it will give you a better idea of what is included in the so-called “cost of living”.
We will use the national average.
This is calculated by taking data from all over the country, excluding the most extreme ends of the spectrum (cities such as Paris, New York, San Francisco, etc.). Averaging the rest of the data will give us a good idea of the cost of living in most of the country.
We’ll be using a partial index to measure the difference between the cost of living in both countries based on daily expenses.
Restaurants
| France | USA | |
| Cheap restaurant | $15.54 | $16.00 |
| 2-person meal at a nice restaurant | $62.17 | $65.00 |
| McDonald menu | $9.84 | $8.50 |
| Local beer (0.5L) | $6.22 | $5.00 |
| Foreign Beer (0.33L) | $5.18 | $6.00 |
| Cappuccino | $3.02 | $4.58 |
| co*ke (0.33L) | $2.73 | $2.25 |
| Water (0.33L) | $1.90 | $1.64 |
Conclusion
The difference in costs is less than 10%, with both countries being higher in approximately half of the categories. We will therefore consider the cost of restaurants to be roughly the same in both countries.
Groceries
| France | USA | |
| Milk (1L) | $1.06 | $1.01 |
| White bread | $2.61 | $3.20 |
| Rice (1 kg) | $2.02 | $4.10 |
| Eggs (dozen) | $3.21 | $3.26 |
| Water (1.5L) | $0.73 | $1.90 |
| Wine | $7.25 | $12.99 |
| Local beer (0.5L) | $2.13 | $2.64 |
| Foreign beer (0.33L) | $2.60 | $3.09 |
| Cigarettes (pack of 20) | $10.36 | $8.90 |
Conclusion
The average grocery index is lower in France by 21%, so it is less expensive to go grocery shopping in France than it is in the USA.
Clothing
| France | USA | |
| Pair of jeans | $84.62 | $45.47 |
| Summer dress | $36.98 | $35.87 |
| Athletic shoes (Nike, etc.) | $85.72 | $78.91 |
| Leather sport chic shoes | $114.81 | $100.75 |
Conclusion
Clothing is 28% more expensive in France than it is in the USA.See AlsoLend Lease | Encyclopedia.com
Transportation
| France | USA | |
| Single metro ticket | $1.76 | $2.50 |
| Monthly metro pass | $67.35 | $70.00 |
| Base taxi price | $2.69 | $3.50 |
| Taxi (by the km) | $1.89 | $1.68 |
| Gas (by the liter) | $2.06 | $1.24 |
Conclusion
The transportation index is 11% lower in France than it is in the USA, but gas is 40% more expensive in France.
Sports and Entertainment
| France | USA | |
| Gym membership (per month) | $34.01 | $41.24 |
| Tennis court (1 hour) | $15.13 | $17.49 |
| Movie ticket | $10.88 | $12.00 |
Conclusion
Sports and entertainment are 13% cheaper in France than in the USA.
Monthly Utilities
| France | USA | |
| Base (electricity, gas, water, trash, etc. for 80 m²) | $164 | $176 |
| Prepaid mobile communication (per minute) | $0.17 | $0.15 |
| Unlimited high-speed internet | $30.62 | $68.54 |
Conclusion
The monthly utility index is 16% lower in France than it is in the USA.
Housing
| France | USA | |
| 1-bedroom apartment downtown (monthly rent) | $773.91 | $1,676.15 |
| 3-bedroom apartment downtown (monthly rent) | $1,644.47 | $2,796.22 |
| Price to purchase a downtown apartment (by the m²) | $6,525.30 | $4,183.95 |
| 1-bedroom apartment outside the city center (monthly rent) | $628.22 | $1,353.19 |
| 3-bedroom apartment outside the city center (monthly rent) | $1,206.58 | $2,209.64 |
| Price to purchase an apartment outside the city center (by the m²) | $4,665.91 | $2,901.36 |
Conclusion
Rent costs 49% less in France than in the USA, but purchasing an apartment is 37% cheaper in the USA than it is in France.
Overall, we have seen that it generally costs more to live in the USA than in France.
Conclusion
To sum it all up, here’s one last table that, while rough around the edges, you can now understand.
| France | USA | |
| Cost of life (including rent) | 45.67 | 58.67 |
| Average income | 83.74 | 114.17 |
| Calculated local cost average | 54.54 | 51.40 |
It is much more expensive to be a tourist in the USA than it is in France since pretty much everything is more expensive. But, as a local, due to the average American yearly income being close to twice the average income in France, it ends up being cheaper to live in the USA.
Mona
I aim to share my tips and recommendations for the beautiful country of France. My goal is to help you plan your next adventure, whether it’s a weekend getaway or a once-in-a-lifetime trip. From finding the best hotels and restaurants, to discovering unique activities and sights, I’ve got you covered!
Related posts
As someone deeply immersed in the comparative analysis of living costs between countries, particularly focusing on France and the USA, I bring a wealth of knowledge to this discussion. My expertise is underscored by a thorough understanding of various indices and methodologies employed in assessing the cost of living. Let's delve into the concepts presented in the article, substantiating each with evidence and insights.
1. Big Mac Index:
- Explanation: The Big Mac Index, proposed by The Economist, measures local purchasing power and cost of living using the price of a Big Mac.
- Evidence: The French Big Mac Index is 4 per hour, while the American Index is 5.4 per hour, indicating a 36% higher cost of living in France.
2. Average Yearly Income:
- Explanation: A straightforward comparison of average yearly income between the USA and France to gauge buying power.
- Evidence: The average yearly income in the USA is €59,950, 62% higher than the €37,102 in France.
3. Cost of Living Index:
- Explanation: An official index considering factors like transportation, healthcare, monthly bills, taxes, and more, excluding rent.
- Evidence: The USA's national index is 71.05, and France's is 74.14, indicating a 4% higher cost of living in France.
4. Manual Comparison - Daily Expenses:
- Explanation: A detailed manual comparison of daily expenses, including restaurants, groceries, clothing, transportation, sports/entertainment, utilities, and housing.
- Evidence: Varies across categories - Restaurants (similar), Groceries (21% lower in France), Clothing (28% more expensive in France), Transportation (11% lower in France, but gas 40% more expensive), Sports/Entertainment (13% cheaper in France), Utilities (16% lower in France), and Housing (rent 49% less in France, but apartment purchase 37% cheaper in the USA).
5. Overall Comparison:
- Explanation: A comprehensive summary considering all factors, including average income, cost of living, and manual comparisons.
- Evidence: The overall cost of life (including rent) is 45.67 in France and 58.67 in the USA, with the average income being 83.74 in France and 114.17 in the USA. The calculated local cost average is 54.54 in France and 51.40 in the USA.
Conclusion:
- Explanation: The final analysis, synthesizing all data and providing a clear conclusion.
- Insight: It is generally more expensive to live in the USA than in France. While it might be pricier for tourists in the USA, the higher average American yearly income makes living in the USA more affordable for locals.
In essence, this expert analysis establishes a nuanced understanding of the cost of living dynamics between France and the USA, offering valuable insights for those contemplating the economic aspects of residing in either country.
