Uprooting your life and relocating to a different city for work can be a challenging decision. Various factors need to be taken into account, with cost being a significant consideration. The 2024 Mercer Cost of Living Survey revealed that Hong Kong remains the most expensive city in the world for expatriates to move to. This means that individuals considering a move to Hong Kong must carefully evaluate their financial situation and ensure that they will be able to afford the high cost of living in the city.
Singapore closely followed Hong Kong in second place on the list of most expensive cities. This means that individuals considering a move to Singapore must also be prepared for the high cost of living in the city. Swiss cities dominated much of the top 10 list, with Zurich, Geneva, Basel, and Bern securing the third, fourth, fifth, and sixth positions respectively. These cities are known for their high quality of life, but they also come with a high price tag.
The survey analyzed 226 cities based on the cost of over 200 items in each location, including transportation, food, clothing, household goods, and entertainment. This comprehensive analysis allows individuals to get a clear picture of the overall cost of living in each city and make informed decisions about their potential relocation.
New York was the highest-ranking US city in seventh place on the list. This means that individuals considering a move to New York must also be prepared for the high cost of living in the city. London jumped to eighth place from 17th place the previous year, indicating that the cost of living in the city has increased significantly. Nassau, The Bahamas, secured ninth place, with Los Angeles rounding out the top 10.
The high cost of living in these cities is attributed to expensive housing markets and increased costs for transportation, goods, and services. Housing costs significantly impact the overall cost of living, leaving employees with less disposable income for other expenses. This means that individuals considering a move to these cities must carefully evaluate their housing options and budget accordingly.
Fluctuations in housing rental prices, inflation, and exchange-rate changes were noted to directly affect the pay and savings of international workers. This means that individuals considering a move to these cities must also consider the potential impact of these factors on their financial situation. In Canada, Toronto was ranked as the most expensive city for international employees at 92, followed by Vancouver at 101. This means that individuals considering a move to these cities must also be prepared for the high cost of living in Canada.
The upper part of the list remained relatively stable compared to the previous year’s rankings, but there were significant increases further down. Mexico City and Monterrey in Mexico were among those cities, with Mexico City moving up 46 places to 33rd, and Monterrey climbing 40 places to 115th. The report highlighted the cost of living in the United States as a major concern for 2024, as seven U.S. cities made it to the top 20.
Vince Cordova, partner and mobility advisory leader at Mercer US, mentioned, “As U.S.-based companies continue to attract talent globally, rising costs may make some foreign nationals think twice about accepting positions in high-cost U.S. cities and metropolitan areas.” Cordova added, “Employers should be transparent about living expenses and net pay details with potential employees to help them understand the financial implications of moving to the U.S. and make an informed decision.”
The cities with the lowest living costs were Islamabad in Pakistan, Lagos, and Abuja in Nigeria, partly due to currency devaluations. The study considered the prices of 200 products, including a dozen large eggs, a liter of olive oil, and an espresso coffee at a popular café, to determine the cost of living in each city. Olive oil prices saw the most significant increase on average, according to the research.
Yvonne Traber, Mercer’s global mobility leader, stated, “Cost-of-living challenges have had a significant impact on multinational organizations and their employees.” Traber emphasized the importance of organizations staying updated on cost-of-living trends and inflation rates, as well as seeking feedback from employees to effectively address these challenges.
2024 cost of living city ranking
1. Hong Kong
2. Singapore
3. Zurich, Switzerland
4. Geneva, Switzerland
5. Basel, Switzerland
6. Bern, Switzerland
7. New York, United States of America
8. London, United Kingdom
9. Nassau, The Bahamas
10. Los Angeles, United States of America
