Saudi Arabia's inflation stood at 2.3% in mid-2025, says the General Authority for Statistics. Housing costs, particularly rents, rose sharply, causing prices to climb despite lower transport costs. Rents jumped about 7%, with villa rents increasing even more. Cities like Riyadh and Jeddah saw strong demand for housing. To slow rising rents, Saudi authorities introduced a five-year rent freeze in Riyadh late in 2025. For many households, especially expatriates who pay rent directly, housing is the biggest monthly expense. Renting a one-bedroom apartment costs between SAR 2,000 and SAR 8,000 ($540–$2,160). Larger homes cost even more. Other living costs vary. Groceries for one person average SAR 747 ($202) monthly, with staples like rice and milk still affordable. Utilities and internet bills remain moderate. Public transport fares are low, and fuel prices are among the world's cheapest. Dining out ranges from cheap local options to pricier restaurants. Although overall inflation is low, cost of living rises faster than wages for many expats. Salary growth has slowed while rent spikes add pressure. This gap is causing some professionals to rethink pay and relocation plans. Monthly expenses for one person usually range from SAR 1,900 to SAR 5,600 ($500–$1,500), varying by city and lifestyle. Riyadh is the most expensive, with rents around SAR 3,500 ($945) for a one-bedroom. Jeddah is around 29% cheaper, with average housing costs near SAR 1,125 ($304). A PwC survey found 47% of Saudi consumers see cost of living as a top concern for 2026. Many are buying more value products and hunting discounts. Saudi Arabia is balancing rapid economic growth under Vision 2030 with managing rising costs. The rent freeze and other policies aim to ease affordability, but high demand keeps housing prices climbing. Residents adapt by changing spending habits and lifestyle choices, facing both hope and caution in this evolving economy.