[Merv and Sharon]

The big driver of the difference is housing prices, which in Sydney have always been higher than other cities. Despite the GFC, the prices have remained high in Sydney, where there were falls in other state capitals and rural areas. Many homes can't sell. People are leaving Sydney, we are told, because of the cost of living.

There are, however, some major long-term differences in the COL between the US and Aus in other areas such as clothing, cars, tyres and gas.