Why do some of the cheapest cities cost the most to live in?

What the report says

Al Jazeera’s AJLabs published a “By the Numbers” video on July 23, 2026, examining why places often described as inexpensive can still be difficult for local residents to afford. The report uses a simple comparison: how many Big Mac hamburgers a worker’s monthly salary can buy in different cities. In the example highlighted, a worker in Cairo could buy 22 hamburgers in a month, while someone in Tel Aviv could buy more than 200, according to Al Jazeera.

The point of the comparison is not that hamburgers define the cost of living, but that prices alone can be misleading. A city may look cheap to visitors or in international rankings, yet still be costly for people earning local wages. If incomes are low, even basic consumer goods can take up a large share of monthly pay.

The method resembles the broader idea behind purchasing-power comparisons, including the well-known Big Mac Index, which uses a standardized product sold in many countries to illustrate differences in prices and currency value. Al Jazeera’s framing shifts the focus to affordability for workers by connecting the product to salaries rather than only to exchange rates.

The report matters because cost-of-living debates often compare rent, food and transport prices across cities without fully accounting for wages. For residents, the more relevant question is how far a paycheck goes. Al Jazeera’s Cairo and Tel Aviv comparison underscores how income levels can make a nominally “cheap” city feel expensive in everyday life.