High Rental Costs Push Swiss Cities Out of Top Spots for Second Consecutive Year
Hong Kong and Singapore have emerged as the top cities on Mercer’s 2024 Cost of Living report, surpassing Swiss cities for the second year in a row. Both cities’ high rental costs have been key factors driving their dominance on the list, which now ranks them as the costliest destinations for expatriates globally.
This year, Zurich, Geneva, Basel, and Bern, all typically high-ranking cities, were pushed out of the top spots. New York also experienced a slight drop, falling to seventh place, while London made a significant jump, climbing nine spots to secure the eighth position.
According to Mercer’s report, rising housing costs and “volatile inflation trends” are increasingly pressuring expatriates’ compensation packages. The report highlighted how the high cost of living is compelling multinational organizations to reconsider the financial support they offer to expat workers, often providing allowances or subsidies to help offset these expenses.
The report emphasized the significant impact these cost-of-living challenges have on both employers and employees. Yvonne Traber, Mercer’s global mobility leader, noted that the high living costs are forcing expatriates to adjust their lifestyles, limit discretionary spending, or even struggle with basic needs.
In addition to Hong Kong and Singapore, the list also revealed other key cities in the top 20, including Los Angeles, Honolulu, and San Francisco in the US, Sydney in Australia, and Toronto in Canada. In contrast, cities in Nigeria like Lagos and Abuja tumbled to the bottom of the ranking due to currency fluctuations.
Mercer’s ranking was based on the comparative cost of over 200 items and services, including housing, transport, food, clothing, and household goods.
