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 trends and economic analysis, I have closely followed the recent developments in the international expatriate living landscape. My extensive knowledge is grounded in a deep understanding of economic factors, inflation trends, and the intricate dynamics that contribute to the cost of living in various cities worldwide.
The recent study by ECA International on the Cost of Living Rankings for 2023 provides valuable insights into the shifting dynamics of expatriate living expenses. New York's leapfrogging of Hong Kong as the world's most expensive city for expats is a noteworthy development. This shift can be attributed to the dual impact of soaring inflation and rising accommodation costs in New York. The city's rise to the top spot underscores the complex interplay of economic factors influencing living expenses.
Geneva and London maintaining their positions in the third and fourth places, respectively, adds stability to the rankings, reflecting the persistent high cost of living in these global financial centers. Singapore's ascent from 13th to the top five is particularly intriguing and defies the general trend observed among Asian cities slipping down the rankings. ECA International's Regional Director for Asia, Lee Quane, attributes Singapore's rise to significant increases in accommodation costs, primarily driven by increased demand and a lag in the supply of accommodation, exacerbated by the earlier relaxation of Covid-19 restrictions.
The report also highlights the remarkable ascent of Istanbul, which surged 95 spots to 108th place, propelled by an 80% surge in prices driven by President Recep Tayyip Erdogan's economic policies. This exemplifies the profound impact of political decisions on a city's cost of living.
The study encompasses a broader global perspective, revealing additional trends. Dubai's rise to 12th place, fueled by a nearly one-third increase in rents due to an influx of Russian expatriates, showcases the influence of demographic shifts on living costs. European cities generally experienced a rise in rankings, except for Norwegian and Swedish cities facing challenges from weak currencies, and French cities slipping due to lower inflation rates compared to EU peers.
Chinese cities, on the other hand, witnessed a decline in rankings, attributed to a weaker currency and lower inflation rates relative to other countries. In the United States, rankings for all cities surged, driven by a strong dollar and high inflation, with San Francisco breaking into the top 10.
ECA International's comprehensive analysis involves factoring in rental costs in areas typically inhabited by expats. This meticulous approach allows for the ranking of 207 cities in 120 countries and territories worldwide, providing a nuanced understanding of the global landscape for expatriate living.
In conclusion, the world's top 20 most expensive places for expats to live, as revealed by the study, offer a glimpse into the intricate web of economic, political, and demographic factors shaping the cost of living in major global cities.
