According to Mercer’s 2024 cost-of-living data, Hong Kong, Singapore, and Zurich are currently the costliest cities for international workers. These three cities have maintained their positions in Mercer’s rankings from the previous year. At the other end of the spectrum, the cities with the lowest living costs are Islamabad, Lagos, and Abuja.
A number of key factors have influenced the world’s economy in recent years, and these factors continue to impact the cost of living in major cities in 2024. Inflation and exchange-rate fluctuations are directly affecting the pay and savings of internationally mobile employees. Heightened economic and geopolitical volatility, as well as local conflicts and emergencies, have led to additional expenses in areas such as housing, utilities, local taxes, and education.
Key Takeaways
- Hong Kong, Singapore, and Zurich are the world’s most expensive cities for expats in 2024.
- Inflation and exchange-rate fluctuations are impacting the pay and savings of internationally mobile employees.
- Housing, utilities, taxes, and education costs have increased due to economic and geopolitical volatility.
- Islamabad, Lagos, and Abuja are among the least expensive cities for expats.
- Mercer’s rankings are based on a comparative cost analysis of over 200 items and services in 226 cities.
These are the World’s Most Expensive Cities for Expats in 2024
Mercer’s annual Cost of Living City Ranking provides valuable trends and insights for those who need to make informed decisions about global mobility operations and international assignees. The ranking lists 226 cities in the world in order, from the most expensive to the least expensive places to live. The comprehensive ranking serves as a valuable compass, providing guidance through the intricate landscape of living expenses in cities worldwide. newsreporto
This chart is unable to display due to Privacy Settings. The chart could not be loaded because the Privacy Settings are disabled. Under the “Manage Cookies” option in the footer, accept the “Functional cookies” and refresh the page to allow the chart to display. The chart presents the most and least expensive cities in the world for international employees. The top 10 most expensive cities are, in order from rank 1 to rank 10: Hong Kong, Singapore, Zurich, Geneva, Basel, Bern, New York City, London, Nassau and Los Angeles. The 10 least expensive cities are, in order from rank 217 to 226: Havana, Windhoek, Durban, Dushanbe, Blantyre, Karachi, Bishkek, Islamabad, Lagos and Abuja.
| Rank | City | Country |
|---|---|---|
| 1 | Hong Kong | China |
| 2 | Singapore | Singapore |
| 3 | Zurich | Switzerland |
| 4 | Geneva | Switzerland |
| 5 | Basel | Switzerland |
| 6 | Bern | Switzerland |
| 7 | New York City | United States |
| 8 | London | United Kingdom |
| 9 | Nassau | The Bahamas |
| 10 | Los Angeles | United States |
Hong Kong Tops the List as Most Costly City
Regional financial centers Hong Kong and Singapore top a new global list of the world’s most expensive cities for expats, knocking Swiss destinations off the top spots for the second year in a row. According to Mercer’s 2024 Cost of Living report, Hong Kong and Singapore beat Zurich, Geneva, Basel and Bern due to high housing costs.
High Housing Costs and Inflation Pressures
Rising housing costs and “volatile inflation trends” are putting pressure on compensation packages for expat workers. “Cost of living challenges have had a significant impact on multinational organizations and their employees,” said Yvonne Traber, Mercer’s global mobility leader, in a press release.
Competitive Expat Compensation Packages Needed
“High costs of living can cause assignees to adjust their lifestyles, cut back on discretionary spending or even struggle to meet their basic needs. To address these challenges, employers can offer compensation packages that include housing benefits or subsidies, or offer other support services.”
Singapore Ranks Second in Cost of Living
According to the Mercer report, rising housing costs and “volatile inflation trends” are putting pressure on compensation packages for expat workers. Singapore ranks second in the list of the world’s most expensive cities for expats.
Swiss Cities Dominate Top Ranks
Swiss cities Zurich, Geneva, Basel, and Bern feature prominently in the rankings of the world’s most expensive cities for expats, coming in 3rd, 4th, 5th, and 6th place respectively. The report examined 226 cities based on the comparative cost of over 200 items in each location, including transportation, food, clothing, household goods, and entertainment. High transportation costs and the high cost of goods and services are contributing factors to the Swiss cities topping the list.
Zurich, Geneva, Basel, and Bern Among Priciest Locations
According to Mercer’s Cost of Living surveys, Switzerland’s major cities, such as Zurich, Geneva, Basel, and Bern, are among the most expensive destinations for expatriates. These Swiss cities have consistently ranked at the top of the list due to their high living expenses, particularly in the areas of transportation and the overall cost of goods and services.
| City | Ranking | Key Factors |
|---|---|---|
| Zurich | 3rd | High transportation costs, expensive goods and services |
| Geneva | 4th | Elevated housing and living expenses |
| Basel | 5th | Costly transportation and consumer goods |
| Bern | 6th | Pricey housing and overall living standard |
The comprehensive Mercer report highlights the factors that contribute to these Swiss cities’ high rankings, including the significant costs associated with transportation, housing, and the overall purchase of goods and services. As top-tier global financial hubs, these Swiss destinations continue to pose a significant challenge for expatriate employees and the companies that send them there.
New York and London Climb the Ranks
While Hong Kong and Singapore continued to hold the top spots as the world’s most expensive cities for expats, New York and London have seen significant shifts in their rankings according to the latest Mercer Cost of Living Survey. New York dropped one spot to seventh place, while London finished in eighth place, up nine places since last year’s rankings.
Seven U.S. Cities in Top 20
The report noted that the cost of living in the U.S. was “a significant issue” for 2024, with seven American cities making it into the top 20 most expensive cities for expats. These include Los Angeles (10th), Honolulu (12th) and San Francisco (13th). Inflationary pressures have potentially caused some hesitation for foreign nationals considering positions in these high-cost U.S. cities and metro areas.
London Jumps to Eighth Place
London, a global financial hub, climbed from 17th place last year to eighth place in the 2024 rankings. This jump can be attributed to the city’s high housing costs and other inflationary pressures impacting the cost of living for international employees.
Cost of Living Volatility Worldwide
The Mercer report highlights the significant volatility in the cost of living for expatriates across the globe. According to the data, “the cost of housing is a major factor in the Cost of Living City Ranking.” Between 2023 and 2024, there was substantial fluctuation in housing rental prices around the world, with costs varying significantly between cities.
Housing Rental Prices Vary Significantly
For example, Istanbul experienced a staggering 301% increase in average rental prices, while Tel Aviv saw a 22% decrease and Minsk, Belarus, a 10% decrease. These dramatic shifts in housing costs play a crucial role in the affordability of cities for international assignees.
Currency Fluctuations Impact Cost of Living
In addition to housing, the Mercer report noted that currency fluctuations were a key factor impacting the cost of living for expats. Cities like Lagos and Abuja in Nigeria saw lower costs partly due to currency depreciations, highlighting the influence of exchange rate volatility on expatriate living expenses.
| City | Housing Rental Price Change (2023-2024) |
|---|---|
| Istanbul | 301% increase |
| Tel Aviv | 22% decrease |
| Minsk, Belarus | 10% decrease |
The Mercer report underscores the significant impact that fluctuations in housing rental prices and currency exchange rates can have on the cost of living for expatriates worldwide. These factors contribute to the overall volatility in the affordability of cities, posing challenges for multinational organizations and their internationally mobile employees.
Inflationary Pressures on Expat Salaries
As the global economy continues to navigate the challenges of rising costs, the impact on expatriate salaries has become a significant concern. “Inflation and exchange-rate fluctuations” have been noted to directly impact the “pay and savings” of international workers, according to the Mercer report. This can lead to difficulties for expats, as high costs of living in major hubs like Hong Kong and Singapore can force them to “adjust their lifestyles, cut back on discretionary spending or even struggle to meet their basic needs.”
Impact on Discretionary Spending and Quality of Life
To address these issues, employers are advised to offer comprehensive compensation packages that include housing benefits, subsidies, or other support services. This can help expatriate employees manage the impact of rising costs on their quality of life and maintain their standard of living, despite the inflationary pressures affecting expatriate salaries. By providing these types of benefits, organizations can better retain and support their internationally mobile workforce, ensuring they are able to continue contributing to the company’s global operations.
Lowest-Cost Cities for Expats
While the world’s major financial hubs like Hong Kong, Singapore, and Zurich continue to top the list of the most expensive cities for expatriates, there are several destinations that offer a more affordable cost of living. According to Mercer’s 2024 Cost of Living City Ranking, the cities that ranked the lowest for living costs are Islamabad, Lagos, and Abuja.
Islamabad, Lagos, and Abuja Rank Among Most Affordable
Islamabad, Lagos, and Abuja stand out as some of the most affordable destinations for expatriates, coming in at the bottom of Mercer’s 2024 rankings. However, this was partly driven by “currency depreciations” in these locations, which can impact the overall cost of living for international workers.
While the relatively low costs in Islamabad, Lagos, and Abuja may be enticing for some expats, it’s important to consider the full scope of factors that contribute to a high or low cost of living, including access to quality healthcare, education, and other essential services. Employers and employees alike must weigh the potential trade-offs when evaluating these more affordable destinations.
Regional Highlights and Trends
The Mercer report highlights several regional trends in the cost of living for expatriates. In North America, New York City remains the most expensive city, followed by other U.S. cities like Los Angeles, Honolulu, and San Francisco. In South America, Montevideo in Uruguay is the priciest location, with Buenos Aires and Sao Paulo also ranking highly. African cities like Bangui, Djibouti, and N’Djamena are among the most expensive on the continent, while Lagos and Abuja are the least costly.
Turning to Asia, Hong Kong and Singapore lead the region in terms of high living costs for expatriates. Other costly cities in Asia include Shanghai, Beijing, and Seoul. In the Pacific region, Sydney tops the list as the most expensive city, while Auckland and Wellington in New Zealand are the most affordable.
| Region | Most Expensive Cities | Least Expensive Cities |
|---|---|---|
| North America | New York City, Los Angeles, Honolulu, San Francisco | – |
| South America | Montevideo, Buenos Aires, Sao Paulo | – |
| Africa | Bangui, Djibouti, N’Djamena | Lagos, Abuja |
| Asia | Hong Kong, Singapore, Shanghai, Beijing, Seoul | – |
| Pacific | Sydney | Auckland, Wellington |
The report’s findings on regional trends in expatriate living costs provide valuable insights for organizations and individuals navigating the complex landscape of global relocation and cost of living considerations. These regional trends and expatriate locations data can help inform strategic decisions and ensure that internationally mobile employees are adequately supported in their assignments.
Impact of Inflation on Everyday Costs
To further examine the impact of inflation, the Mercer report analyzed the cost changes of a basket of everyday items between 2023 and 2024, including 12 large eggs, 1 liter of olive oil, an espresso coffee, 1 liter of gasoline, a pair of men’s blue jeans, and a women’s haircut. On average, the costs of all these products have increased, with the most notable hike being in the price of olive oil.
Significant Increases in Olive Oil Prices
Some cities, like Buenos Aires, saw a staggering 694% increase in olive oil prices, while others like Istanbul experienced a 145% rise. The significant increase in olive oil prices highlights the substantial impact of inflation on everyday expenses for expatriates worldwide.
Varied Impacts on Other Goods and Services
The prices of other goods and services, such as eggs, espresso coffee, gasoline, jeans, and haircuts, also varied significantly across locations. This volatility in the cost of everyday items underscores the challenges faced by expatriates as they navigate the fluctuating cost of living in their host cities.
Implications for Employers and Expatriates
The Mercer report underscores the significant impact that cost-of-living challenges can have on multinational organizations and their expatriate employees. High living costs can force assignees to adjust their lifestyles, cut back on discretionary spending, or even struggle to meet basic needs. To address these issues, employers are advised to offer comprehensive compensation packages that include housing benefits, subsidies, or other support services.
Importance of Cost of Living Data and Employee Feedback
It is also important for organizations to stay informed about cost-of-living trends and inflation rates, and to seek input from employees on these matters, in order to effectively manage the financial impacts of global mobility. By closely monitoring the evolving cost-of-living landscape and maintaining open communication with their expatriate workforce, employers can ensure that their compensation and relocation policies remain competitive and responsive to the needs of their international assignees.
Addressing the employer considerations and expatriate challenges related to cost of living data and employee feedback is crucial for multinational organizations to provide a positive and supportive environment for their globally mobile employees. This, in turn, can help facilitate successful international assignments and retain top talent.
FAQ
What are the world’s most expensive cities for expats in 2024?
According to Mercer’s 2024 Cost of Living report, the world’s most expensive cities for expats are Hong Kong, Singapore, and Zurich.
What factors are driving the high cost of living in these cities?
Rising housing costs and volatile inflation trends are putting pressure on compensation packages for expat workers in these cities. High transportation costs and the high cost of goods and services are also contributing factors.
How are employers addressing the cost of living challenges for expatriate employees?
Employers are advised to offer compensation packages that include housing benefits or subsidies, or provide other support services to help expatriate employees manage the impact of rising costs on their quality of life.
Which cities are the least expensive for expats to live in?
According to the report, the cities that ranked the lowest for living costs are Islamabad, Lagos, and Abuja. However, this was partly driven by currency depreciations in these locations.
What regional trends are observed in the cost of living for expatriates?
The report highlights regional trends, such as North American cities like New York, Los Angeles, and San Francisco being among the most expensive, while African cities like Lagos and Abuja are the least costly. Asian hubs like Hong Kong and Singapore lead the rankings, while the Pacific region is topped by Sydney.
How has inflation impacted the costs of everyday items for expats?
The report analyzed the cost changes of a basket of everyday items between 2023 and 2024, finding that the prices of all these products have increased, with the most notable hike being in the price of olive oil. The prices of other goods and services varied significantly across locations, highlighting the volatility in the cost of living for expatriates worldwide.