Asia's hugest financial hubs have once again clinched the top spots for being the costliest cities for international workers to live in, per Mercer.
Hong Kong was the most expensive city for expats, followed by Singapore and Aurich per the Cost of Living City Ranking 2024. Cities in Switzerland- Zurich, Geneva, Basel and Bern- snagged four out of 10 spots. New York City ranked as No.7. the top five spots had no change from the year before, but London climbed nine positions from No. 17 to 8.
Top 10 most expensive cities for expats:
- Hong Kong
- Singapore
- Zurich, Switzerland
- Basel, Switzerland
- Bern, Switzerland
- New York City, United States
- London, United Kingdom
- Nassau, Bahamas
- Los Angeles, United States
The survey compared the costs of more than 200 items in each of the 226 cities studied, including the price of housing, transportation, food, clothing, household goods and entertainment. New York City was the benchmark, and currency fluctuations were measured against the US dollar. The cities in Nigeria, Pakistan and Kyrgyzstan were the least expensive cities for expats to live in, with Lagos and Abuja in Nigeria falling 178 and 86 spots, respectively, to No.225 and 226.
Sky-high housing Markets
The Mercer report said high inflation and rising economic and geopolitical tensions have driven up housing prices, utilities, local taxes, and education. "High living costs may cause assignees to adjust their lifestyle, cut back on discretionary spending or even struggle to meet their basic needs," Yvonne Traber Mercers, global mobility leader, highlighted in the press release. Apart from Nassau, Bahamas, all other cities in the top 10 reported a rise in housing costs from 2023, with an 8% price jump in Hong Kong and Singapore, 7% in New York City and 6% in Zurich. "Between 2023 and 2024, there was a lot of volatility in this cost around the world with housing rental prices varying significantly between cities," according to the report. Prices have also risen, and the housing supply failed to meet the demand. "Such costs can be particularly challenging in areas with high population growth or limited land available for development. Other factors like construction costs and land prices can also affect housing affordability," the report noted. In addition, this would leave employees with less disposable income for other expenses.
