Thinking about living abroad or taking a work assignment in another country? Many factors come into play when it comes to an international move—considerations such as which countries are the safest in the world and how a country’s tourism economy ranks on a global scale. Cost of living is also a highly weighted consideration for most people. But which countries are most expensive for expats? Mercer, a leading consulting firm in human resources and financial services, released its 2024 cost of living survey, revealing that Hong Kong remains the most expensive city in the world for international employees.
“The comprehensive ranking serves as a valuable compass, providing guidance through the intricate landscape of living expenses in cities worldwide,” according to Mercer. This year’s methodology evaluated 226 cities, stacking up the comparative costs of more than 200 items in each location, including housing, transportation, food, clothes, household goods, and entertainment.
Of the top 10 most expensive cities for expats, half are located in Western Europe, Mercer points out, with Switzerland being home to four. But it’s Southeast Asia cities that headline the list of the most expensive places for international workers to live, with Singapore following Hong Kong.
Factors that are affecting international mobile employees or those who are on international assignments include inflation and exchange-rate fluctuations. Heightened geopolitical volatility, as well as localized conflicts and emergencies, also lead to additional expenses in the housing, utilities, and taxing categories.
Generally speaking, the higher-ranking cities like Hong Kong, Singapore, and Switzerland cities have expensive housing markets, high transportation costs and higher prices for goods and services that combine to drive up the cost of living.
Seven U.S. cities are in this year’s top 20 most expensive cities for expats, with New York City and Los Angeles landing in the top 10. But North America’s biggest year-to-year changes occurred in Mexico, with the country’s capital Mexico City jumping up 46 places to No. 33 and Monterrey, in northeastern Mexico, moving up 40 places to No. 115.
Dubai, a popular spot for expats, has inched up in the rankings and is the costliest city in the Middle East, moving from No. 18 most expensive in the world in 2023 to landing at No. 15 on this year’s list.
High inflation has led to the most significant increases in living costs in Istanbul (No. 130) and African cities like Accra (No. 98), Addis Ababa (No. 138), and Cairo (168).
These are the most expensive cities for expats in 2024:
No. 1: Hong Kong, China
No. 2: Singapore
No. 3: Zurich, Switzerland
No. 4: Geneva, Switzerland
No. 5: Basel, Switzerland
No. 6: Bern, Switzerland
No. 7: New York City, New York, United States
No. 8: London, United Kingdom
No. 9: Nassau, Bahamas
No. 10: Los Angeles, California, United States
No. 11: Copenhagen, Denmark
No. 12: Honolulu, Hawaii, United States
No. 13: San Francisco, California, United States
No. 14: Bangui, Central African Republic
No. 15: Dubai, United Arab Emirates
No. 16: Tel Aviv, Israel
No. 17: Miami, Florida, United States
No. 18: Djibouti
No. 19: Boston, Massachusetts, United States
No. 20: Chicago, Illinois, United States