In 2024, Hong Kong once again claimed the title of the world’s most expensive city for expats, according to Mercer’s Cost of Living City Ranking. This ranking revealed that Asia’s major financial centers, including Singapore and Zurich, were among the top three costliest cities for international workers to reside in. Cities in Switzerland, such as Zurich, Geneva, Basel, and Bern, also secured spots in the top ten list of expensive cities. Interestingly, New York City came in at number seven, highlighting the global nature of high living costs for expats.
The rankings were determined by comparing the costs of over 200 items in each of the 226 cities included in the study. These items spanned various categories, such as housing, transportation, food, clothing, household goods, and entertainment. Notably, New York City served as the benchmark against which the costs in other cities were measured, with currency fluctuations taken into account against the U.S. dollar.
While the top five rankings remained consistent with the previous year, London experienced a significant jump, climbing nine positions from 17 to 8. This shift indicates a changing landscape in terms of cost of living for expats in major cities. Conversely, cities in Nigeria, Pakistan, and Kyrgyzstan emerged as the least expensive for expats. Lagos and Abuja in Nigeria, in particular, plummeted in the rankings, landing at 225 and 226 respectively. This stark contrast between the most and least expensive cities highlights the dramatic disparities in cost of living around the world.
For expatriates considering moving to or within these cities, the cost of living rankings serve as crucial decision-making tools. Understanding the financial implications of relocating to a high-cost city like Hong Kong or Singapore can help expats better prepare for the financial adjustments they may need to make. Conversely, those looking to reduce living expenses may find cities in Nigeria, Pakistan, and Kyrgyzstan more appealing options for their international assignments.
The Cost of Living City Ranking 2024 sheds light on the varying financial landscapes across different cities worldwide. By examining the factors influencing these rankings and the implications for expats, individuals and organizations can make more informed decisions regarding international assignments and relocations. As global mobility continues to increase, understanding the cost of living in different cities will be paramount for expats seeking to make the most of their international experiences.