According to Mercer’s 2024 Cost of Living report, Hong Kong and Singapore have secured their positions as the world’s most expensive cities for expatriates, surpassing Swiss cities such as Zurich, Geneva, Basel, and Bern for the second consecutive year. This ranking is primarily driven by high rental costs in both cities.

New York has dropped one spot to seventh place, while London experienced a significant rise, moving up nine spots to eighth. The report highlights that escalating housing expenses and fluctuating inflation are exerting pressure on compensation packages for expatriate workers.

Yvonne Traber, Mercer’s global mobility leader, emphasized the profound impact of cost-of-living challenges on multinational organizations and their employees. She noted that high living costs often force assignees to modify their lifestyles, limit discretionary spending, or even struggle to meet essential needs. To help mitigate these challenges, employers are encouraged to offer comprehensive compensation packages that may include housing allowances, subsidies, or additional support services.

Among other cities, seven from the United States made it into the top 20, including Los Angeles at the tenth spot, Honolulu at twelfth, and San Francisco at thirteenth. Sydney was noted as the most expensive city in the Pacific region, ranking 58th. In Canada, Toronto held the title of the priciest city at 92nd, while Mumbai was the most expensive city in India, sitting at 136th. Conversely, Nigeria’s Lagos and Abuja ranked low on the list, coming in at 225th and 226th, respectively, largely due to currency fluctuations.

Mercer’s analysis compared the costs of over 200 items and services—including housing, transport, food, clothing, and household goods—across 226 cities to establish this ranking.