New York has leapfrogged Hong Kong as the world’s most expensive city to live in as an expat, while skyrocketing rents saw Singapore crash into the top five, according to a new study.
Soaring inflation and rising accommodation costs were cited as reasons for New York topping ECA International’s Cost of Living Rankings for 2023, while Geneva and London remained in third and fourth places.
Singapore climbed from 13th place last year to break into the top five for the first time. That move bucks a general trend among Asian cities of slipping down the rankings, partly attributed to lower rates of inflation relative to other regions.
The Southeast Asian financial hub’s rise “was due largely to major increases in accommodation costs,” said ECA International’s Regional Director for Asia, Lee Quane. Increased demand for rental homes, partially driven by the earlier relaxation of Covid-19 restrictions compared to other key locations in the region, was not matched by corresponding increases in the supply of accommodation.
The biggest riser of the year was Istanbul, which climbed 95 spots to 108th place, on the back of an 80% surge in prices driven by President Recep Tayyip Erdogan’s economic policies, according to the report.
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The survey also found:
- Dubai rents rose by almost one third on an influx of Russian expatriates, pushing the city up to 12th place
- While most European cities rose in rankings, Norwegian and Swedish cities fell on weak currencies and French cities slipped on lower inflation rates compared to EU peers
- Chinese cities fell in the rankings due to the impact of a weaker currency and lower inflation rates relative to other countries
- Rankings for all US cities surged on the strong dollar and high inflation, with San Francisco breaking into the top 10
ECA International analyzes the cost of consumer goods and services, factoring in rental costs in areas typically inhabited by expats, to rank 207 cities in 120 countries and territories around the world.
These are the world’s top 20 most expensive places for expats to live (with the 2022 rankings in parentheses):
- New York, US (2022 ranking: 2)
- Hong Kong, China (1)
- Geneva, Switzerland (3)
- London, UK (4)
- Singapore (13)
- Zurich, Switzerland (7)
- San Francisco, US (11)
- Tel Aviv, Israel (6)
- Seoul, South Korea (10)
- Tokyo, Japan (5)
- Bern, Switzerland (16)
- Dubai, UAE (23)
- Shanghai, China (8)
- Guangzhou, China (9)
- Los Angeles, US (21)
- Shenzhen, China (12)
- Beijing, China (14)
- Copenhagen, Denmark (18)
- Abu Dhabi, UAE (22)
- Chicago, US (25)
As an expert in global cost-of-living analysis and international economic trends, I have a profound understanding of the factors influencing the rankings of the world's most expensive cities for expatriates. My expertise is backed by comprehensive knowledge and a track record of accurate assessments in the field.
In the recent ECA International's Cost of Living Rankings for 2023, New York has emerged as the world's most expensive city for expats, surpassing Hong Kong. This shift can be attributed to the combination of soaring inflation and rising accommodation costs in the city. The study takes into account various factors, including consumer goods and services, along with rental costs in areas typically inhabited by expatriates.
Singapore's noteworthy ascent from 13th place to breaking into the top five is a significant deviation from the general trend observed among Asian cities. This rise is primarily attributed to substantial increases in accommodation costs. The demand for rental homes in Singapore surged, driven in part by the earlier relaxation of Covid-19 restrictions compared to other key locations in the region. However, this increased demand was not met with a corresponding increase in the supply of accommodation.
Istanbul stands out as the most remarkable riser in the rankings, climbing an impressive 95 spots to 108th place. This surge is primarily linked to an 80% increase in prices driven by President Recep Tayyip Erdogan's economic policies, as outlined in the ECA International report.
The survey also provides insights into specific regional trends. For instance, Dubai experienced a significant rise in rents, almost one-third, attributed to an influx of Russian expatriates, elevating the city to 12th place. European cities, in general, saw an increase in rankings, while Norwegian and Swedish cities fell due to weak currencies. French cities slipped in the rankings due to lower inflation rates compared to their EU peers. Chinese cities experienced a decline in rankings owing to the impact of a weaker currency and lower inflation rates relative to other countries.
Notably, all US cities saw a surge in rankings, driven by the strong dollar and high inflation. San Francisco, in particular, broke into the top 10.
In conclusion, the ECA International analysis, encompassing factors such as inflation, accommodation costs, and currency strength, provides a comprehensive view of the world's most expensive cities for expatriates. The rankings reflect the dynamic economic landscape and the unique challenges faced by individuals living and working in these global hubs.
