cost of living: usa versus germany.
A question I get a lot, particularly from German friends, is if living here in Karlsruhe is more expensive than The States. This is hard to answer, as the USA offers quite the range of living capacities (Germany, too). To make an honest comparison, I can only compare what I know, which are the cities of Houston, Austin, and Karlsruhe. My hypothetical life in Houston would involve me at an entry-level PR salary living in an apartment in central Houston, Texas.
From my experience, living in the US is cheaper than living in Germany.
Here’s Why:
- Food: My grocery bills just ring up higher. Whether it’s the avocados and beef or the Coca-Cola and ice cream, it always seems to cost more. The discount groceries in Germany provide an outlet, but some things just cost more. Exceptions: onions, apples, juices.
- Consumer Goods: In simple theories, clothes, electronics, toys, etc. are often priced the same as in the US, but in Euros. So, if a camera is $300, it will be €300, which is actually 30%+ more for expats.
- Taxes: In Germany, when all is said and done at the end of a full work year, a solid 40 percent of my salary is gone. [German Tax Calculator] In the US, I would pay between 15-25 percent. However, my German taxes also ensure that I am health insured and it’s spectacular insurance. At the end of the year we also files taxes just as we would in the US but using a slightly different form than the 1040 or 1040A they use in the states.
- Night Life: Going out in the US is just plain cheaper. There are always great drink specials and affordable cocktails. Germany, you are best sticking to beer and even that can cost you 2-5 €. Oh how I sometimes long for dollar beer nights and Texas Teas. However, in Germany, bars and clubs stay open past 2 a.m., which Texas law forbids.
- Cell Phone: When you sign a 2 year contract in Germany, don’t expect a free or discounted smartphone as a part of the deal. The German cell phones run with the idea we had years ago in the US with free talk among users with the same carrier, etc. It’s just different and I feel like I don’t get the same bang for my buck with data plans and SMS packages. Yes, pay-as-you-go is cheap, but it’s cheap(er) in the US, too.
Contradicting Factors:
- Rent: My rent is significantly cheaper living well-located in the city here, than living in “inside-the-loop” in Houston. In fact, I would pay $400+ more to live well located in Houston. However, my apartment is much-older, has no air-conditioning, no dryer, no elevator, old kitchen appliances, etc.
- Alcohol: In stores (not out, as mentioned earlier), you can buy liquor and wine on the mega-cheap and often the wine’s are dang good, too.
Other Factors (that don’t quite apply to me):
- Driving: Owning and driving an automobile is much cheaper in the US. There are more affordable vehicles, more affordable insurance, cheaper gas, easier to obtain a driver’s license, etc. If I stayed here forever, an automatic, precious new smart car would have to be in the books though. Although the public transport is spectacular and I love the freedom I feel on my bike, sometimes you just need a freaking car.
Expatistan, provides a crowd-sourced cost of living index where you can compare hundreds of cities worldwide. In this case, Expatistan agrees with me. Living in Karlsruhe is 28% more expensive than living in Houston, and it’s not even an expensive German city! Perform your own comparison here.
**These opinions are entirely my own and from my own experience living in the US and abroad. This is obviously a simple breakdown, but I live a simple life here as a single independent, so that’s what you get.**
What’s your experiences with prices and cost-of-living abroad? Did your Expatican results surprise you?
Such a great post!! I’ve had a few bloggers email me asking about the cost of living difference, and I never thought to post about it. I might just have to borrow this idea…with credit to your genius mind of course. That website is great! I totally looked up how much living in Wiesbaden (well, I had to use the Frankfurt option, but close enough) to living in Greensboro, NC and it’s 54% more expensive living here in Germany! No wonder we’re broke!!!! lol Dear Lord, I need wine.
At LEAST the wine is cheaper. Except, it maybe doesn’t end up being cheaper because I sure drink a lot of it here…
wow, this is really interesting and helpful! Since I am thinking about moving abroad we need to SAVE up. but it’s worth it for the experience. seriously awesome post!
Yes definitely just save – I always find myself spending money just because it’s like well you can only do this once! Except now that I’ve been here over a year I’ve done things more than once… but still, too hard to turn down opportunities! And so many random things you have to pay for that you forget – visas, lost crap, broken crap, etc.
Thanks for sharing your experience and this comparison. This information is very helpful for my boyfriend’s family, who consider moving to Europe from The States;)
Oh wow, that sure is exciting!!
i think it sounds pretty accurate. norway is wayyyy more expensive than anywhere in the US…or the rest of europe for that matter. they tax quite high here too. and you get health insurance included in your taxes. but i think the health insurance is subpar. norwegians dont…but they have never experienced both sides. i paid significantly less in the US for my insurance through my job than i pay in taxes here.
to get your drivers license in norway it is roughly $6,000. enough said
by the way, when i lived in germany in the 80s it was ridiculously cheaper than living in the US. how times change
OH yeah, I definitely can’t talk – I just looked and Oslo is 118% more expensive than Houston – just unbelievable! I couldn’t manage it. I think the license in Germany is over $2000 and I thought that was bad. I could switch my American license easily to a German one, but right now I still have no real interest in driving here besides driving once on the Autobahn.
And that is crazy – times certainly have changed! I wonder if it has to do with the Euro. I don’t know how the US manages to keep everything so low but I guess I can’t complain. I bought my mom a big brand German knife for cheaper in the US than I could have got it in Germany.
Prices are weird.
You’re right, Germany really isn’t the cheapest place to live – but have you ever been to Switzerland? I’m only saying: we paid about 8€ for our starbucks coffee. Very sobering experience!
Oh yes, Switzerland is brutal. I traveled there once and forgot my tennis shoes and figured I’d just buy some since I needed some anyway. A pair of Nike trainers was 300CHF!! Unreal… I live off doner kebab when I’m there, which still costs 9 CHF.
I absolutely agree, a lot of stuff is cheaper in America. Going out to eat is cheaper, gas is cheaper, rent is cheaper. At least where we live. But buying beer in the store is cheaper in Germany.
David was so surprised when I told him what I had to pay to get my driver’s license in Germany!
And the beer is better
but yes in general, it always surprises me how much cheaper it is in the US – and also how many more options there are at the grocery stores and such.
I think it definitely depends on where in the US… We were blessed to live in the great state of Texas where many things are much cheaper.. but my mom is in San Diego and brother is in New York and holy moly are those cities crazy expensive in every aspect.
This is true, but definitely why I just compared Houston and Karlsruhe. I was still surprised though since Houston is much larger. If I compared Munich or something, it’d be even more. The rent there in the city is really high, yet the wages are lower than a comparative US city. Pretty crazy.
I live in a fairly expensive town in Michigan but Paris is MUCH more expensive. Even going north to Brussels and the prices are cut in half. Paris, even for Europe, is just super pricy!
Oh gosh, I cannot imagine – especially Paris on an au pair salary. Well maybe (hopefully) they compensate for the more expensive place because I struggled going out in cheap Karlsruhe on mine. Gotta say though, you get what you pay for with Paris
Thanks for the post! My husband and I were just discussing if living in Germany cost us more…I said yes, he no so you just helped me prove my point!
ha, glad I could help!!
I did a comparison for Edinburgh (where I study normally) and Paris (where I am now) and the housing prices are 97% more expensive – Paris is 33% in general. I want to weep.
Hits ya where it hurts, doesn’t it? However, you get to live in PARIS!!!
I compared Karlsruhe with the nearest city to my home (Newcastle) and was told Karlsruhe is 4% cheaper, but also that it’s a complete guess because they have next to no information for Newcastle. Hmmm.
Personally, I think grocery shopping in Germany is more expensive than in the UK purely because shops on brands in the UK are just soo stupidly cheap. Aldi etc. go some way to redress the balance, but even there you can’t get a tin of new potatoes for 16p (about 19 euro cents). Not that I buy potatoes in tins, it’s just an example
You can add in the info for Newcastle and help the crowdsourcing
I tried to remember the prices I know well here in KA. Haha and I love your potatoes example. Aldi does definitely help cushion it, but their selection is just SO random and the produce is so hit or (usually) miss.
I actually added a few things I remember/know from Newcastle and now Karlsruhe is suddenly 8% more expensive! Haha. I don’t know about stuff like housing prices though cos I still lived with my dad when I was there and even if I knew how much his house cost he doesn’t actually live IN Newcastle itself.
Great breakdown! I’m living in Thailand temporarily, which is, obviously, much cheaper than living in Canada. Maybe i was naive, but I was so excited about how inexpensive everything was here at first, but then I realized that the quality is on par with the price. Am I really saving that much money if I have to buy 5 tank tops over the course of 6 months because they keep falling apart in the wash, rather than just buying one decent one in Canada?
hahahahaha that is a good point! But then again with tank tops, I feel like they always wear out or get stained or something, so maybe it’s not so bad? But ya, I can imagine how frustrating it’d get if quality all around was just not there!
Okay, first off. (As usual) I love this post! 1. It came at perfect timing, as I was actually JUST debating with an American who was trying to convince a soon to be expat to just buy clothes here. NO. They are so much more expensive, add the tax rate and conversion… just pay the 60 bucks and bring a whole extra suitcase. haha 2. Takes are just plain insane. But, I did get a completely free cell phone with a German contract. In fact, I got the iphone 5, which at home usually would never be given free. Thanks for the website, that will be fun to compare my hometown with Dorfen in!!
Sometimes buying clothes here isn’t so bad, like 1982 and Primark are SO cheap and H&M is totally reasonable. But yeah, the US is definitely cheaper with WAY more selection of cheaper. How did you get it free? Are you not paying for the phone monthly? That’s what I was going to do but instead just bought a Nexus 4 unlocked and outright. Anyways, the website is SO entertaining to browse! Glad you enjoy
I find things for sewing and crafts a lot more expensive, especially fabric. Beer, cigarettes and wine may be cheaper(and nicer….except the smoking) than the uk, but I resent what you pay for fresh food and shoes! Great post idea. Xx
Yes all things crafty are so much more expensive! I always wanted to buy them for the kids when I was an au pair but then I’d realize, ya, don’t make enough for this haha. And such a good point, Germany does have some REALLY cheap shoes. Then again, I can’t bring myself to buying them because I worry about the comfort and quality.
ha, what a cool tool
My cities seem not to be part of it, but I do like the idea of an open source tool to compare any city you might want to move to. Thanks for sharing.
xx
maybe you can add yours in
compare that to indonesian currency. haha,,
In Indonesia, you’ll feel everything is extremely cheaper if you’re an expat.
That must be a SPECTACULAR feeling!
and German tax is crazily high. but you get a good health insurance out of it
This is very true, but coming from the US and me (personally) having good insurance and health care there, I don’t think I appreciate it enough.
thanks for turning my suspicions into a legit blog post! Hope your Christmas was fabulous!
A very interesting post, Alex! I agree that technology and driving are a lot cheaper in the States – I know a lot of people who would always buy their newest Apple gadgets in the States. Regarding groceries and toiletries Germany is way more affordable though. Fast food and eating out might be cheaper in the US, but organic groceries and milk products are definitely cheaper in Germany. My aunt lives in San Antonio, and she always complains how expensive proper good cheese is. In the end, I think it really depends where in the country you live. From what I remember, going out in Karlsruhe for example was more expensive than in my rural hometown.
Ya true, cheese is a big one. It definitely depends on where you live but the variety in the US just makes finding deals so much easier too .You have the massive discount stores where you can get everything in one place, or buy in bulk like at Costco, and it really makes a big difference and is way more common in the US.