The 10 Most Costly Cities for Expats in 2024
According to Mercer, once again, Asia's largest financial centers have been ranked as the most expensive cities for international workers to reside in.
According to the Cost of Living City Ranking 2024, Hong Kong was ranked as the most expensive city for expats to reside in, with Singapore and Zurich following closely behind.
The cities of Zurich, Geneva, Basel, and Bern in Switzerland claimed four of the top 10 spots, while New York City came in at seventh place.
From No. 17 to 8, London experienced a climb of 9 positions in the top five spots.
Top 10 most expensive cities for expats:
- Hong Kong
- Singapore
- Zurich, Switzerland
- Geneva, Switzerland
- Basel, Switzerland
- Bern, Switzerland
- New York City, United States
- London, United Kingdom
- Nassau, Bahamas
- Los Angeles, United States
Over 200 items were compared in cost across all 226 cities studied, including housing, transportation, food, clothing, household goods, and entertainment.
The U.S. dollar was used as the benchmark and currency fluctuations were measured against New York City.
The three cities in Nigeria, Pakistan, and Kyrgyzstan were the most affordable for expats to reside in, with Lagos and Abuja in Nigeria ranking 225th and 226th, respectively.
Sky-high housing markets
The Mercer report stated that housing prices, utilities, local taxes, and education have increased due to high inflation and economic and geopolitical tensions.
Yvonne Traber, Mercer's global mobility leader, pointed out in a press release that high living costs may force assignees to make changes to their lifestyle, reduce discretionary spending, or struggle to meet their basic needs.
In 2023, all cities in the top 10, except for Nassau, Bahamas, experienced an increase in housing costs. Hong Kong and Singapore had the highest price jump of 8%, while New York City and Zurich saw a 7% and 6% increase, respectively.
The report stated that between 2023 and 2024, there was considerable volatility in global housing rental costs, with significant variations between cities.
Prices have also risen as housing supply failed to keep up with demand.
High population growth and limited land availability for development can make housing costs particularly challenging, which can reduce employees' disposable income for other expenses. Additionally, construction costs and land prices can also impact housing affordability.
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