What is the most expensive city to live in? And the least? Find out from this William M. Mercer survey of the cost of living in 143 cities. The 2008 survey found that Moscow is the world's most expensive city for expatriates for the third consecutive year, while Tokyo secured the No. 2 spot and London ranked third. Of U.S. cities, New York City was ranked highest, while Winston-Salem, North Carolina, was ranked lowest. Asuncion, Paraguay came in last on the survey, ranking lowest among all 143 cities. The survey measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment. View more articles, issues, questions or lists.