Relocating for work involves numerous considerations, with cost being a significant factor. The Mercer Cost of Living Survey for 2024 has named Hong Kong as the priciest city for expats for the third year running. The survey, released on Monday, evaluated 226 cities based on the comparative cost of over 200 items, including transportation, food, clothing, household goods, and entertainment.
Top Rankings
- Hong Kong
- Singapore
- Zurich, Switzerland
- Geneva, Switzerland
- Basel, Switzerland
- Bern, Switzerland
- New York, USA
- London, United Kingdom
- Nassau, The Bahamas
- Los Angeles, USA
Rising Housing Costs and Other Factors
The report highlights that high housing costs significantly influence these rankings. Expensive housing markets in these cities mean that a considerable portion of expats’ income goes toward rent or mortgages, leaving less disposable income for other expenses. Additionally, inflation and exchange-rate fluctuations have impacted the pay and savings of international workers.
North America Highlights
New York remains the most expensive US city, ranked seventh. London, which was 17th last year, jumped to eighth place. Toronto is the most expensive Canadian city at 92nd place, followed by Vancouver at 101st.
Notable Movements
The list saw significant changes further down the rankings. Mexico City climbed 46 places to 33rd, and Monterrey moved up 40 places to 115th. Seven US cities were in the top 20, emphasizing the high cost of living in the US.
Financial Implications
Mercer’s Vince Cordova noted the importance of transparency for employers regarding cost of living and net pay information to help prospective employees make informed relocation decisions. This is particularly relevant as US-based companies continue to attract global talent amid inflationary pressures.
Lowest Ranking Cities
The cities with the lowest living costs were Islamabad, Pakistan, and Lagos and Abuja in Nigeria, partly due to currency depreciations.
Impact of Rising Costs
The cost of living, particularly the price of essentials like a dozen large eggs, a liter of olive oil, and an espresso coffee, has had a significant impact on multinational organizations and their employees. The study highlighted that olive oil saw the most notable price increase.
Mercer’s global mobility leader, Yvonne Traber, stressed the importance of organizations staying informed about cost-of-living trends and inflation rates to manage their effects effectively.
The survey underscores the challenges of relocating for work, emphasizing the importance of considering living costs when making such decisions.
