New York Overtakes Hong Kong as Most Expensive City for Expats in 2023

After several years at the top of the rankings, Hong Kong is no longer the most expensive city for expats. Following high inflation, New York takes the lead in this ranking signed by ECA International and marked by the soaring cost of living in many countries.

“If you can do it here, you can do it anywhere”, sang Frank Sinatra. The song New York, New York has never resonated so well as in 2023. The main American city becomes the one with the highest cost of living in the world according to the latest study byECA International, the world’s leading provider of information and software for managing and assigning employees worldwide. For 50 years, ECA International has been conducting research on the cost of living and is particularly interested in a basket of consumer goods but also in the cost of housing.

New York, the most expensive city in the world in 2023

Rankings for all US cities have increased in 2023, driven by the strength of the US dollar and high inflation. San Francisco thus entered the Top 10 (7th place) when it was in 11th place in 2022. The Angels goes from 21st to 15th place and Chicago from 25th to 20th position.

New York2nd in 2022, takes the place of Hong Kong as the most expensive city in the world for expatriates, the fault of “the significant increase in the cost of rents due to the explosion in demand following the pandemic. »explains ECA International.

Hong Kong, second most expensive city

Hong Kong therefore down a notch but remains the most expensive city in Asia. “Costs of goods and services in Hong Kong have reached levels not seen in several years, showing that the city has not been spared the wave of inflation seen around the world over the past year. », said Lee Quane, Regional Director for Asia at ECA International. He adds : “Despite this, Hong Kong fell in our rankings as rising prices for everyday goods and services were tempered by falling accommodation costs in the city. »

Singapore more and more expensive, just like Seoul

The ranking remains more or less stable in terms of the top 10 most expensive countries. Geneva et London keep their 3rd and 4th places respectively. Zurich goes from 7th to 6th place, Tel Aviv from 8th to 6th place and Seoul moves up one position, from 10th to 9th place. Singapore jumped to 5th place, when it was 13th in 2022. The explanation comes in the lack of housing in the City-State. “The increase in Singapore and Seoul is largely explained by the sharp increase in accommodation costs”underlines Lee Quane, regional director for Asia at ECA International.

Asia down, the rest of the world up

Inflation has spared very few continents, except in Asia. Tokyo rose from 5th to 10th place in one year, following the depreciation of its currency. Shanghai et Canton dropped out of the World Top 10. Taipei even lost 11 places. “The fall of many Asian cities in our rankings is partly due to lower inflation rates than in other regions included in our research,” says Lee Quane.

Other continents have been much more affected by inflation and/or by the consequences of the war in Ukraine. The cost of housing has skyrocketed in several countries, especially in Europe and the Middle East. The influx of Ukrainian refugees in Poland has thus increased rents by 25 to 50% to Warsaw et Krakow. The influx of wealthy Russians has also pushed housing costs up to Dubai.

Istanbul was the city with the strongest progression in 2023, gaining 95 places to reach 108th position: “Prices have increased by more than 80%, mainly due to the economic policies of the recently re-elected President Erdogan. »

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