HONG KONG – For those considering a move abroad, the cost of living remains a critical factor. According to the 2024 Mercer Cost of Living Survey, released Monday, Hong Kong once again emerges as the most expensive city for expatriates. This marks the third consecutive year the Asian metropolis has claimed the top spot, closely followed by Singapore.
Immediate Impact
The survey, which evaluates 226 cities worldwide, highlights the financial burden faced by international workers. Swiss cities dominate the top rankings, with Zurich, Geneva, Basel, and Bern securing the third to sixth positions respectively. New York, the highest-ranked city in the United States, appears in seventh place.
Top 10 Most Expensive Cities for Expats in 2024:
- Hong Kong
- Singapore
- Zurich, Switzerland
- Geneva, Switzerland
- Basel, Switzerland
- Bern, Switzerland
- New York, USA
- London, UK
- Nassau, The Bahamas
- Los Angeles, USA
Key Details Emerge
The report meticulously analyzes over 200 cost factors, including transportation, food, clothing, household goods, and entertainment. London, which was previously in 17th place, has risen to eighth, while Nassau and Los Angeles complete the top ten. The study underscores that rising housing costs are a major contributor to these rankings.
“The cost of housing is a major factor in the Cost of Living City Ranking,” the study notes, emphasizing the impact on disposable income.
Financial Impacts
Beyond the top ten, significant shifts are observed. Mexico City has surged 46 places to 33rd, while Monterrey climbed 40 spots to 115th. The survey also highlights that the cost of living in the U.S. remains a pressing issue, with seven cities in the top 20.
“As US-based companies continue to source talent globally, inflationary pressures may give some inbound foreign nationals pause,” said Vince Cordova, partner and mobility advisory leader at Mercer US.
By the Numbers
In Canada, Toronto ranks as the most expensive city for international employees at 92, followed by Vancouver at 101. Meanwhile, Islamabad and Lagos are among the least expensive, driven partly by currency depreciations.
The price of olive oil saw the most notable increase among 200 assessed products.
Industry Response
Yvonne Traber, Mercer’s global mobility leader, emphasized the importance of staying informed about cost-of-living trends. “It is important for organizations to stay informed about cost-of-living trends and inflation rates,” she stated, urging companies to engage with employees on these issues.
What Comes Next
As global economic conditions fluctuate, the cost of living will continue to be a pivotal consideration for expatriates and employers alike. Companies are encouraged to provide transparent cost-of-living information to prospective employees to facilitate informed decision-making.
This development builds on previous years’ trends, highlighting the persistent financial challenges faced by expatriates worldwide. As the year progresses, further shifts in rankings may occur, reflecting ongoing economic changes and their impact on international mobility.
