Deutsche Bank Research has published its 8th annual survey of global prices and living standards from various countries and cities around the world, showing that San Francisco has dislodged Zurich as the city with the highest salaries.
The US west coast city has soared up the rankings to dislodge Zurich for the highest salaries and disposable income after rent, according to Deutsche Bank’s ‘Mapping the World’s Prices 2019’.
The average monthly salary (net of taxes) in San Francisco has climbed to $6,526, passing Zurich ($5,896) for the first time, with New York third ($4,612). Boston and Chicago round out the top five.
Over the past five years alone, San Francisco has risen 7 and 21 places on both gauges, Bloomberg reported.
“The rapid growth of the US tech sector is helping San Fran beat traditional capital cities for incomes,” Deutsche Bank’s Jim Reid, Craig Nicol and Henry Allen wrote in the report.
“Whilst its cost of living is increasing each year and rising up the cost rankings on most measures we cover, it still lags major global capitals. In terms of 2-bed rents however, it is only behind Hong Kong.”
Much of the shift is down to the dollar’s surge over the past half-decade, which has helped inflate the position of US cities versus global peers. The greenback is up 20% versus the euro and 23% against sterling in the period, Bloomberg reported.
For the survey, Deutsche Bank converts prices for products and services around the world into dollars, and mostly uses crowdsourcing for input data. It also looks at average salaries, meaning megacities will be higher up the rankings because they have more people on higher salaries.
For South Africa, Cape Town is ranked 34th on the list, paying an average salary of $1,302 (R18,700) monthly, while Johannesburg is ranked 36th, paying an average of $1,223 (R17,570).
Deutsche Bank’s data shows that year-on-year, salaries in Cape Town have eked 4% higher, however, in Joburg, salaried have declined as much as 26% over the past year.
Shockingly, in Joburg, salaries have declined from $2,023 in 2014. In Cape Town, the average salary stood at $1,628 in 2014.