2023 Mercer Cost of Living survey  

Cost of living for all major US cities increased in 2023, making it less affordable for expatriates, according to Mercer Cost of Living survey

June 28, 2023 
United States, New York

Today, Mercer announced the results of its 2023 Cost of Living Survey with New York City remaining the most expensive city in North America for expatriates, ranking 6th worldwide, while Hong Kong retained the top spot globally out of 227 cities from across five continents. The survey found that all US cities have increased in the ranking, making it less affordable for employees, particularly for expatriates (expats) who move to the US for international assignments. As many global companies with US operations source a significant part of their workforce outside the US, combined with a tight labor market, a higher cost of living could impact expats’ willingness to relocate, further exacerbating staffing needs.

Mercer’s Cost of Living survey helps employers design efficient and equitable compensation packages for assignment locations worldwide. The survey found that all US cities have risen in the ranking since last year, primarily due to prolonged inflation and exchange-rate fluctuations, which is having a direct impact on the pay and savings of international employees.

In addition to a volatile economic climate triggered by COVID-19 and the introduction of aggressive national monetary policies to help tamp down inflation, a continued hybrid working model is causing many employees to reconsider their priorities, assess their work-life balances, and think about the places in which they have chosen to live.

While Mercer’s Cost of Living research primarily helps employers determine compensation strategies for international assignees, Vince Cordova, Partner in Mercer’s Mobility Practice, is mindful that current socio-economic conditions affect all employees and their employers.

“The US has had a cost-of-living crisis brewing for some time and a severe housing shortage in high-growth areas, but COVID-19 only exacerbated this issue. This will be a pervasive and persistent issue, not just for international employees, but domestic employees as well,” said Cordova.

“Inflation and cost of living impact everyone, and it’s imperative to keep in mind that those who make the least are impacted the most,” Cordova continued. “In developing pay strategies that are equitable and sustainable, employers need to understand how those factors impact these individuals as part of their broader rewards strategies.”

Pay equity and transparency are also becoming key factors for both employers and employees as states such as California, Washington, and New York have introduced legislation to disclose salary ranges in job postings. "Companies are still navigating their way in the pay transparency space, but more visibility on compensation factors will also help employees who are considering international assignments understand how they should be thinking about pay and how their financial wellness could be impacted by living in the US,” added Cordova.

More than ever before, employees are now armed with information to help them understand the value of their skills, experience, and education in a given market. “Competition in the global talent market is fierce, and with the cost-of-living crisis affecting both employees and organizations, employers need to be flexible. This has prompted multinational employers to reassess how they manage their workforces,” said Yvonne Traber, Partner, and Global Head of the Mobility Practice at Mercer. “Failing to implement competitive international compensation strategies in times of economic uncertainty and to align internal and external pay range will determine organizations’ competency in the ability to attract and retain top talents.”

Regional Insights

Behind New York City, Los Angeles (11 in the global ranking) is the second most expensive city in North America, followed by San Francisco (14) and Honolulu (15). The largest increases in the cost of living in North America were seen in Detroit (+27 positions), Houston, and Cleveland (both +24 positions). Canadian cities are at the cheaper end of the ranking for North America, with all of them having dropped since last year. Toronto is ranked the most expensive in Canada (90 in the global ranking), followed by Vancouver (116), and Montreal (135).

About Mercer’s Cost of Living Survey

Mercer's widely recognized Cost of Living ranking is one of the world’s most comprehensive studies and is designed to help multinational companies and governments determine compensation strategies for their international assignees. New York City is used as the base city for all city ranking comparisons and currency movements are measured against the US dollar.

The survey includes 400+ cities throughout the world; this year’s ranking includes 227 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment. The data collected provides all of the key elements employers need to design efficient and transparent compensation packages for international assignees. Learn more here.

About Mercer

Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 85,000 colleagues and annual revenue of over $20 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit mercer.com. Follow Mercer on LinkedIn and Twitter.

Mercer 2023 Cost of Living Ranking

Rank 2023

City

Location

1

Hong Kong

Hong Kong (SAR)

2

Singapore

Singapore

3

Zurich

Switzerland

4

Geneva

Switzerland

5

Basel

Switzerland

6

New York City, NY

United States

7

Bern

Switzerland

8

Tel Aviv

Israel

9

Copenhagen

Denmark

10

Nassau

Bahamas

11

Los Angeles, CA

United States

12

Shanghai

China

13

Beijing

China

14

San Francisco, CA

United States

15

Honolulu, HI

United States

16

Seoul

South Korea

17

London

United Kingdom

18

Dubai

United Arab Emirates

19

Tokyo

Japan

20

Shenzhen

China

21

Boston, MA

United States

22

Miami, Fl

United States

23

Washington, DC

United States

24

Chicago, IL

United States

25

Vienna

Austria

26

Bangui

Central African Republic

27

Djibouti

Djibouti

28

Amsterdam

Netherlands

29

Atlanta, GA

United States

30

Luanda

Angola

31

Seattle, WA

United States

32

Kinshasa

The Democratic Republic of the Congo

33

Prague

Czech Republic

34

Helsinki

Finland

35

Paris

France

36

Guangzhou

China

37

Berlin

Germany

38

Munich

Germany

39

Conakry

Guinea Republic

40

N'Djamena

Chad

41

Brussels

Belgium

42

Victoria

Seychelles

43

Abu Dhabi

United Arab Emirates

44

San Juan

Puerto Rico

45

Buenos Aires

Argentina

46

The Hague

Netherlands

47

Lagos

Nigeria

48

Frankfurt

Germany

49

Milan

Italy

50

Philadelphia, PA

United States

51

Dublin

Ireland

52

Libreville

Gabon

53

Dallas, TX

United States

54

Montevideo

Uruguay

55

Qingdao

China

56

Sydney

Australia

57

Taipei

Taiwan

58

Luxembourg

Luxembourg

59

Rome

Italy

60

Oslo

Norway

61

Houston, TX

United States

62

Hamburg

Germany

63

San Jose

Costa Rica

64

Riga

Latvia

65

Pittsburgh, PA

United States

66

Dakar

Senegal

67

Minneapolis, MN

United States

68

Busan

South Korea

69

Stuttgart

Germany

70

Noumea

New Caledonia

71

Melbourne

Australia

72

Portland, OR

United States

73

Nanjing

China

74

Dusseldorf

Germany

75

Barcelona

Spain

76

Shenyang

China

77

Abidjan

Côte D'Ivoire

78

St. Louis, MO

United States

79

Mexico City

Mexico

80

Detroit, MI

United States

81

Douala

Cameroon

82

Brisbane

Australia

83

Madrid

Spain

84

Brazzaville

The Republic Of Congo

85

Riyadh

Saudi Arabia

86

Edinburgh

United Kingdom

87

Santiago

Chile

88

Cleveland, OH

United States

89

Chengdu

China

90

Toronto

Canada

91

Leipzig

Germany

92

Lyon

France

93

Osaka

Japan

94

Canberra

Australia

95

Stockholm

Sweden

96

Nuremberg

Germany

97

Athens

Greece

98

Manama

Bahrain

99

Chongqing

China

100

Tallinn

Estonia

101

Jeddah

Saudi Arabia

102

Yaounde

Cameroon

103

Pointe-à-Pitre

Guadeloupe (France)

104

Bratislava

Slovakia

105

Bangkok

Thailand

106

Adelaide

Australia

107

Perth

Australia

108

Xian

China

109

Glasgow

United Kingdom

110

Amman

Jordan

111

Auckland

New Zealand

112

Suzhou

China

113

Nagoya

Japan

114

Harare

Zimbabwe

115

Yokohama

Japan

116

Vancouver

Canada

117

Lisbon

Portugal

118

Birmingham

United Kingdom

119

Aberdeen

United Kingdom

120

Port of Spain

Trinidad & Tobago

121

Toulouse

France

122

Wuhan

China

123

Vilnius

Lithuania

124

Taichung

Taiwan

125

Belfast

United Kingdom

126

Doha

Qatar

127

Kingston

Jamaica

128

Bamako

Mali

129

Bujumbura

Burundi

130

Muscat

Oman

131

Kuwait City

Kuwait

132

Phnom Penh

Cambodia

133

Manila

Philippines

134

Lome

Togo

135

Montreal

Canada

136

Guatemala City

Guatemala

137

Ottawa

Canada

138

Kaohsiung

Taiwan

139

Wellington

New Zealand

140

Abuja

Nigeria

141

Yerevan

Armenia

142

Bucharest

Romania

143

Ljubljana

Slovenia

144

Cotonou

Benin

145

Calgary

Canada

146

Zagreb

Croatia

147

Mumbai

India

148

Panama City

Panama

149

Ouagadougou

Burkina Faso

150

Quito

Ecuador

151

Jakarta

Indonesia

152

Sao Paulo

Brazil

153

Tirana

Albania

154

Dhaka

Bangladesh

155

Monterrey

Mexico

156

Hanoi

Vietnam

157

Niamey

Niger

158

Casablanca

Morocco

159

Maputo

Mozambique

160

Santo Domingo

Dominican Republic

161

Budapest

Hungary

162

Dar Es Salaam

Tanzania

163

Nouakchott

Mauritania

164

Ho Chi Minh City

Vietnam

165

Limassol

Cyprus

166

Kampala

Uganda

167

Lima

Peru

168

Sofia

Bulgaria

169

New Delhi

India

170

Warsaw

Poland

171

Rio De Janeiro

Brazil

172

Bandar Seri Begawan

Brunei

173

Nairobi

Kenya

174

Rabat

Morocco

175

Belgrade

Serbia

176

San Salvador

El Salvador

177

Baku

Azerbaijan

178

Accra

Ghana

179

Tegucigalpa

Honduras

180

Kuala Lumpur

Malaysia

181

Tbilisi

Georgia

182

Minsk

Belarus

183

Port-Au-Prince

Haiti

184

Chennai

India

185

Istanbul

Turkey

186

Wroclaw

Poland

187

Port Louis

Mauritius

188

Brasilia

Brazil

189

Bengaluru

India

190

Krakow

Poland

191

Kigali

Rwanda

192

Asuncion

Paraguay

193

Antananarivo

Madagascar

194

Addis Ababa

Ethiopia

195

La Paz

Bolivia

196

Manaus

Brazil

197

Lusaka

Zambia

198

Blantyre

Malawi

199

Belo Horizonte

Brazil

200

Skopje

Macedonia

201

Managua

Nicaragua

202

Hyderabad

India

203

Sarajevo

Bosnia-Herzegovina

204

Yangon

Myanmar

205

Johannesburg

South Africa

206

Algiers

Algeria

207

Banjul

Gambia

208

Almaty

Kazakhstan

209

Vientiane

Lao People's Democratic Republic

210

Cape Town

South Africa

211

Kolkata

India

212

Johor Bahru

Malaysia

213

Pune

India

214

Bogota

Colombia

215

Colombo

Sri Lanka

216

Gaborone

Botswana

217

Cairo

Egypt

218

Tashkent

Uzbekistan

219

Tunis

Tunisia

220

Durban

South Africa

221

Ankara

Turkey

222

Windhoek

Namibia

223

Dushanbe

Tajikistan

224

Bishkek

Kyrgyzstan

225

Havana

Cuba

226

Karachi

Pakistan

227

Islamabad

Pakistan