Which Cities Are World's Most Expensive for Expats to Live in?

New York is the world's most expensive city to live in as an expatriate, putting an end to Hong Kong's four-year reign at the top, according to the latest cost of living research published by ECA International.

Skyrocketing inflation and significant rises in rental costs associated with soaring post-pandemic demand were cited as the main reasons for New York topping the ECA International’s Cost of Living Rankings for 2023. It was noted that Hong Kong fell in the rankings as prices rose at a quicker rate in New York, while accommodation costs continued to drop in Hong Kong in 2022.

The report indicated that Chinese cities fell in the rankings due to the impact of a weaker Chinese yuan and lower rates of inflation in comparison to other states. Some of the cities, in particular Shanghai and Guangzhou, while securing their status as the most expensive cities in China, have fallen out of the global top 10.

These are the world's top 10 most expensive cities for expatriates to live in:

At the same time, rankings for all US cities have risen this year, the report stated, driven by the strength of the US dollar and high inflation, with San Francisco breaking into the top 10.

Skyrocketing rents also saw Singapore crash into the top five. Rent in the Southeast Asian nation rose significantly last year as supply failed to keep pace with rising demand. In Seoul, which ranks ninth globally, housing costs rose mostly due to a reduction in supply caused by changes in property tax regulations in the city.

Istanbul, Turkiye, is the biggest riser in this year’s rankings, up 95 spots to 108th. The report explained the city's performance in the rankings, pointing at an 80% surge in prices driven by President Recep Tayyip Erdogan’s economic policies.

According to the report, the ongoing conflict in Ukraine continues to impact the cost of living in the involved states, and across the world. It was noted that despite sanctions imposed on the country, "the Russian ruble has rebounded in the past year, pushing Moscow up 37 places to become the 25th most expensive location in the world."

Moreover, rental costs in cities where many Ukrainian refugees have fled the conflict have increased drastically making them more expensive for everyone, including expatriates.

ECA International's cost of living rankings represent the organization's cost of living and accommodation research aimed at enabling a comparison of costs faced by expatriates across the globe in 207 cities in 120 countries and territories.