SUMMARY
- Hong Kong relinquishes its title as the most expensive city for expats, with New York now leading the pack.
- Despite a global wave of inflation, a decline in accommodation costs has caused Hong Kong's rankings to dip.
- Across the United States, a strong dollar and soaring rental costs have boosted cities like New York and San Francisco in the global rankings.
In an unexpected shift in global rankings, Hong Kong's longstanding dominance as the costliest city for expatriates worldwide has been upended. Taking the crown is the bustling metropolis of New York, as revealed in a recent survey.
This comprehensive survey was a part of ECA International's annual "Cost of Living" research, which scrutinizes the economic conditions in 207 cities. The analysis considers an array of common commodities and services – from everyday essentials like food and utilities to household necessities and public transport – all to assist organizations in determining the living allowances for their overseas staff.
Hong Kong's descent in these rankings was mitigated by a fall in accommodation costs despite an observable surge in the prices of everyday goods and services. "In spite of a wave of inflation we have seen globally, Hong Kong's costs for goods and services have escalated at an unprecedented rate," said Lee Quane, the regional director for Asia at ECA International.
However, Hong Kong hasn't entirely lost its status. It continues to stand tall as the priciest location within Asia. This comes even as the city grapples with an exodus of residents due to a cocktail of factors including COVID-19 restrictions and perceived erosion of democratic norms.
While Hong Kong struggles to maintain its position, cities across the United States have seen their rankings soar due to a potent mix of a stronger US dollar and significant upticks in rental costs. New York, in particular, has ascended to the pinnacle of the list, while San Francisco witnessed a notable rise from 11th to 7th place.
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