As cities around the globe grapple with inflation, exchange rate fluctuations, and housing market pressures, Mercer’s 2024 Cost of Living Ranking provides an essential guide for international professionals and businesses alike. Published by Mercer since 1998, the ranking covers 226 cities worldwide, revealing not only where expats will pay the highest for everyday expenses but also highlighting important shifts in global living costs.
Let’s dive into the key findings of the latest edition.
Highlights from Mercer Cost of Living 2024
- Growing economic and geopolitical volatility, as well as local conflicts and emergencies, have led to additional expenses in numerous areas.
- Inflation and exchange-rate fluctuations are eroding purchasing power and putting additional strain on cities and employers’ ability to retain and attract top talent.
- Higher-ranking cities which attract mobile employees face a rise in the cost of goods and services, expensive and competitive housing markets, and high transportation costs.
- The European Central Bank forecasts that costs could stabilise in European economies if the annual inflation rate in the Eurozone continues to fall.
The Most Expensive Cities to Live in 2024
| Rank | City | Change in Rank |
| 1 | Hong Kong | 0 |
| 2 | Singapore | 0 |
| 3 | Zurich | 0 |
| 4 | Geneva | 0 |
| 5 | Basel | 0 |
| 6 | Bern | +1 |
| 7 | New York | -1 |
| 8 | London | +9 |
| 9 | Nassau | +1 |
| 10 | Los Angeles | +1 |
Standout Trends and Shifts
- Hong Kong and Singapore maintain their positions as the two most expensive cities globally, driven by soaring housing costs and demand for luxury goods.
- Western Europe claims half of the top ten most expensive cities, with Zurich (3rd), Geneva (4th), Basel (5th), and Bern (6th) standing as the priciest locations, bolstered by strong economies.
- London has surged nine places to claim the 8th spot, joining the top 10.
- Copenhagen (11th) and Tel Aviv (16th) both left the top ten most expensive cities.
- Cost of living remains an issue in the USA, with all US cities in the ranking placing in the top 100 and seven cities ranking in the top 20.
- Lagos and Abuja in Nigeria anchor the bottom of the list, making them the most affordable cities for expatriates due to current impacts of currency depreciation.
Regional Analysis
Western Europe
- Most Expensive: Zurich, Geneva, Basel, Bern, and London
- Expensive: Copenhagen (11), Vienna (24), Paris (29), Berlin (31)
- Least Expensive: Birmingham (78), Belfast (87), Nuremberg (85), Leipzig (86), Toulouse (95)
Eastern Europe
- Most Expensive: Prague (56), Riga (61)
- Expensive: Bratislava (81), Tallinn (96)
- Least Expensive: Ankara (208), Sarajevo (203)
Middle East
Dubai is the most expensive city in the Middle East, ranked 15th after rising three positions, while Tel Aviv dropped to 16th and Abu Dhabi maintained its position at 43rd.
- Most Expensive: Dubai (15), Tel Aviv (16), Abu Dhabi (43)
- Expensive: Riyadh (90), Jeddah (97)
- Least Expensive: Karachi (222), Bishkek (223), Islamabad (224)
Asia
Hong Kong and Singapore maintain their top ranking. Shanghai, Beijing, and Seoul all fell in the ranking.
- Most Expensive: Hong Kong, Singapore
- Expensive: Shanghai (23), Beijing (25), Seoul (32)
- Least Expensive: Johor Bahru (214), Tashkent (216), Dushanbe (220)
North America
New York City remains the most expensive in North America, followed by Nassau and several U.S. cities, such as Los Angeles, Honolulu, and San Francisco. Mexico City went up 46 places, to 33rd.
Canadian cities are at the lower end of the ranking for North American cities. Toronto is ranked the most expensive in Canada (92), followed by Vancouver (101).
- Most Expensive: New York, Nassau, Los Angeles
- Expensive: Honolulu (12), San Francisco (25), Mexico City (33)
- Least Expensive: Monterrey (115), Montreal (118), Ottawa (126)
South America
Uruguay’s capital, Montevideo, rose 12 positions to be the most expensive in the region at 42nd, while Buenos Aires and Santiago de Chile saw significant declines.
Several cities in the region saw significant movement compared to 2023 due to currency exchange rate and rental accommodation cost fluctuations: Santiago de Chile fell by 73 places to 160th in the ranking, while Bogotá, Colombia, rocketed 40 places to 174th.
- Most Expensive: Montevideo (42), Buenos Aires (77)
- Expensive: São Paulo (124), Quito (148), Santiago de Chile (160)
- Least Expensive: Asunción (192), La Paz (198), Managua (197)
Africa
- Most Expensive: Bangui (14th), Djibouti (18th), N’Djamena (21st)
- Expensive: Conakry (26), Dakar (39), Libreville (45)
- Least Expensive: Blantyre (221), Lagos (225th), Abuja (226th)
Pacific Region
Australian cities are the most expensive, such as Sydney, Melbourne, and Brisbane. In New Caledonia, Noumea is one of the most expensive cities in the region.
New Zealand cities, Auckland and Wellington, are more affordable in comparison.
- Most Expensive: Sydney (58), Noumea (60), Melbourne (73), Brisbane (89)
- Expensive: Canberra (106), Adelaide (107)
- Least Expensive: Auckland (111), Wellington (145)
Biggest Movers and Shakers
| City | Change in Rank | New Rank |
| Accra | +80 | 98 |
| Addis Ababa | +56 | 138 |
| Istanbul | +55 | 130 |
| Tirana | +50 | 103 |
| Cairo | +49 | 160 |
| Osaka | -53 | 146 |
| Santiago de Chile | -73 | 160 |
| Abuja | -86 | 226 |
| Luanda | -128 | 158 |
| Lagos | -178 | 225 |
- High inflation is likely the main reason for the most significant increases in living costs in cities in Africa (Accra, Addis Ababa and Cairo), and Eastern Europe (Istanbul). The exception being Tirana, which has been affected by exchange fluctuations.
- Cities in Africa (Lagos, Luanda and Abuja), South America (Santiago de Chile) and Eastern Asia (Osaka) experienced significant decreases due to currency devaluations.
Methodology: What Does the Ranking Measure?
Mercer’s report evaluates over 200 key items—spanning housing, food, transportation, and entertainment—providing a comprehensive snapshot of the most and least expensive cities. The methodology encompassed 226 cities and to ensure consistency in city ranking comparisons, New York City was used as the base city. Currency movements were measured against the US dollar.
Conclusion:
Mercer’s 2024 Cost of Living Ranking offers a valuable resource which provides insights into the most and least expensive cities across the world. As inflation, currency fluctuations, and housing market pressures reshape the global landscape and influence global mobility, understanding these shifts becomes essential for companies, employers, and expatriates alike as they manage the financial challenges and opportunities in a rapidly changing world.
For a detailed look visit Mercer’s 2024 Cost of Living website.
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