Hong Kong retained its leading position as the world's most expensive city for expatriates in 2024, according to Mercer.
Chunyeap Wong | E+ | Getty Images
Asia's largest financial centers have once again taken the top spots as the most expensive cities for international workers to live in, according to Mercer.
Hong Kong has been ranked as the most expensive city to live in for expats, followed by Singapore and Zurich, according to the city's 2024 cost of living rankings.
Cities in Switzerland – Zurich, Geneva, Basel and Bern – obtained four out of 10 places. New York City is ranked #7.
The top five positions saw no change from the previous year, but London rose 9 places from 17th to 8th.
The 10 most expensive cities for expatriates:
The survey compared the costs of more than 200 items in each of the 226 cities surveyed – including the prices of housing, transportation, food, clothing, household goods and entertainment.
New York City was used as a benchmark and currency fluctuations were measured against the US dollar.
Cities in Nigeria, Pakistan and Kyrgyzstan were the least expensive cities to live in, with Lagos and Abuja in Nigeria falling 178 and 86 places respectively to 225th and 226th.
Sky-high housing markets
The Mercer report said that rising inflation rates and increasing economic and geopolitical tensions led to higher prices for housing, utilities, local taxes and education.
“Higher costs of living may prompt assignees to adjust their lifestyle, cut back on discretionary spending or even struggle to meet their basic needs,” Yvonne Traber, global mobility leader at Mercer, said in the press release.
Aside from Nassau, Bahamas, all other cities in the top 10 recorded rising housing costs from 2023, with prices jumping 8% in Hong Kong and Singapore, 7% in New York City, and 6% in Zurich.
“Between 2023 and 2024, there was a lot of fluctuation in this cost around the world, with housing rental prices varying widely between cities,” the report said.
Prices also rose due to the failure of housing supply to keep up with demand.
“Such costs can be particularly challenging in areas experiencing high population growth or with limited land available for development. Other factors, such as construction costs and land prices, can also affect housing affordability,” the report noted, adding that This would leave employees with less disposable income for other expenses.
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