The 10 Most Expensive Cities for Expats

Published by FareCompare on June 24, 2024

Relocating to a new place for work sounds like an exciting adventure – and it often is – but there are dozens of factors to consider before taking the plunge. It begs the question, which international city is the most expensive for expat workers?

The results of Mercer's 2024 Cost of Living Survey have been published, and the results might not surprise you.

Hong Kong sits at the top of the ranking of the most expensive cities for international workers, a repeat from both 2022 and 2023. Singapore followed closely in second place. However, nearly all of the other top 10 locations are in Switzerland: Zurich, Geneva, Basel, and Bern came in third, fourth, fifth, and sixth places – respectively.

New York is the highest-ranking city in the United States, coming in seventh place; Los Angeles rounded out the list by taking the tenth spot. Interestingly, London was ranked 17th last year and saw an impressive jump up to eighth place. The two most affordable cities are Nigeria's Lagos (#225) and Abuja (#226).

How the Ranking Works

The survey examined 226 international cities based on the comparative cost of over 200 items in each location. This includes transportation, food, clothing, household goods, and entertainment. Report insights flagged expensive housing markets and rising costs of transport, goods, and services as the reason for an overall increased cost of living in these international cities.

The issue of housing cost and availability is another primary driver of this year's results. According to Mercer, "A contributing factor to the cost of housing is a shortage of housing relative to the number of people looking for housing. This mismatch between supply and demand is driving prices up for international assignment logistics. Such costs can be particularly challenging in areas with high population growth or with limited land available for development."

What's more, "inflation and exchange-rate fluctuations" were noted to have directly impacted the "pay and savings" of international workers.

Cost of Living Criteria

Some of the most common items taken into account when determining a city's ranking were a dozen eggs, a liter of olive oil, an espresso coffee at a popular café, and a pair of blue jeans. In total, the prices of 200 products were factored into the survey's final results. According to the study, the price of olive oil was the most notable hike on average, coming in at a nearly 59% increase.

mercer cost of living survey