Hong Kong is the most expensive city for expatriates, according to Mercer’s Cost of Living City Ranking 2024.

The survey, conducted by global human resources firm Mercer, studied the living expense structures of 226 cities around the world to provide enterprises with informed decisions about global mobility operations. It assessed the comparative cost of over 200 items in each location. New York was used as the base city and currency movements were measured against the US dollar.

The survey cited expensive housing, high transportation costs and pricey goods and services as contributing to high living costs in Hong Kong, Singapore and Zurich

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The survey ranked Singapore and Zurich as the second and third costliest cities for expats.

The survey cited expensive housing, high transportation costs and pricey goods and services as contributing to high living costs in Hong Kong, Singapore and Zurich.

“Rising housing costs in many cities around the world have made it increasingly challenging for organizations to attract and retain top talent for international assignments,” Mercer said. “As housing costs rise, organizations may need to allocate a larger portion of their budgets to provide competitive compensation packages that may put a strain on the financial resources of these organizations.”

When living costs increase, this has a knock-on effect on compensation and benefits, and raises general operational costs, which makes it more difficult for businesses to attract and retain top talents, Mercer argued.

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Organizations should explore innovative solutions to address these issues by offering competitive compensation packages, providing support services and exploring alternative talent-sourcing strategies.