According to Mercer’s 2024 Cost of Living data, Hong Kong, Singapore, and Zurich continue to be the most expensive cities for international workers, maintaining their top positions from last year. At the opposite end, Islamabad, Lagos, and Abuja rank as the least costly cities.
In Canada, only one city — Toronto — cracked the list of the top 100.
Several factors have influenced these rankings, it said. Inflation and exchange-rate fluctuations have significantly impacted the pay and savings of internationally mobile employees. Additionally, heightened economic and geopolitical volatility, alongside local conflicts, have increased expenses in housing, utilities, local taxes, and education.
In cities like Hong Kong, Singapore, and Zurich, high housing markets, transportation costs, and the cost of goods and services contribute to their high living costs. Conversely, currency depreciations have driven down living costs in Islamabad, Lagos, and Abuja.
Mercer’s annual Cost of Living City Ranking, which includes 226 cities, provides essential insights for global mobility operations and international assignees. The data help organizations make informed decisions about compensation and relocation logistics.
The top 10 most expensive cities for international workers
| Rank | City | Country | Change |
|---|---|---|---|
| 1 | Hong Kong | Hong Kong (SAR) | 0 |
| 2 | Singapore | Singapore | 0 |
| 3 | Zurich | Switzerland | 0 |
| 4 | Geneva | Switzerland | 0 |
| 5 | Basel | Switzerland | 0 |
| 6 | Bern | Switzerland | 1 |
| 7 | New York City, NY | United States | −1 |
| 8 | London | United Kingdom | 9 |
| 9 | Nassau | Bahamas | 1 |
| 10 | Los Angeles, CA | United States | 1 |
How Canada fared
Mercer included five Canadian cities in the ranking, with only one — Toronto — cracking the top 100.
| Rank | City | Country | Change |
|---|---|---|---|
| 92 | Toronto | Canada | −2 |
| 101 | Vancouver | Canada | 15 |
| 118 | Montreal | Canada | 17 |
| 126 | Ottawa | Canada | 11 |
| 141 | Calgary | Canada | 4 |
Regional highlights
Western Europe: Half of the top ten most expensive cities are in Western Europe, with Switzerland hosting four. London has also joined the top ten at 8th place. Other expensive cities include Copenhagen (11), Vienna (24), Paris (29), and Amsterdam (30).
Middle East: Dubai has climbed to the 15th spot, becoming the costliest city in the Middle East for international employees. Tel Aviv follows, ranking 16th.
South America: Montevideo ranks as the most expensive city in South America at number 42. Buenos Aires and Santiago have seen significant drops, falling to 77th and 160th, respectively.
North America: New York City remains the most expensive city at number 7, followed by Nassau, Bahamas (9), Los Angeles (10), Honolulu (12), and San Francisco (13). Notably, Mexico City and Monterrey have seen significant ranking increases.
Africa: Bangui, Djibouti, and N’Djamena are the highest-ranking African cities. Blantyre, Lagos, and Abuja rank as the least expensive.
Asia: In addition to Hong Kong and Singapore, Shanghai (23), Beijing (25), and Seoul (32) are among the most expensive cities. Karachi, Bishkek, and Islamabad are the least expensive.
Pacific: Sydney leads at 58th place, followed by Noumea (60), Melbourne (73), and Brisbane (89). Auckland and Wellington are the least expensive in the Pacific region.
Cost and quality of living
Mercer’s report also highlights the balance between cost and quality of living. Only eight cities worldwide offer a combination of low costs and high quality of life, including Ljubljana, Montreal, Warsaw, Zagreb, Budapest, Panama City, Santiago, and Kuala Lumpur.
Impact on businesses
The cost-of-living crisis has made it challenging for businesses to attract and retain top talent. Rising living costs have led to higher compensation demands and operational costs. Organizations must stay informed about cost-of-living trends and inflation rates to manage their global talent effectively. Competitive compensation packages, support services, and alternative talent-sourcing strategies are crucial.
Methodology
Mercer’s 2024 ranking assessed 226 cities across five continents, comparing over 200 items, including housing, transportation, food, clothing, household goods, and entertainment. New York City served as the base city for currency comparisons. Data were collected in March 2024, incorporating exchange rates and Mercer’s international basket of goods and services.
For more information, see the full report at https://www.mercer.com/insights/total-rewards/talent-mobility-insights/cost-of-living/