Mercer 2024 Cost of Living Survey
Among 226 cities across five continents, Luxembourg ranked 47th in the 2024 Cost of Living Survey conducted by consultancy firm Mercer. Looking at the costs of essential items such as housing, food and clothing, the survey draws comparisons between different cities and provides insight into the expenses of life around the globe. But what does Luxembourg's rank mean?
In the top 25%
Although Luxembourg's rank on Mercer's Cost of Living Survey has been fluctuating over the past decade, it has steadily climbed from 84th in 2019 to a peak of 47th in 2024. However, this upward trend for Luxembourg also reflects its increasing living expenses. In simple terms: a higher rank indicates a higher cost of living. Overall, European cities feature frequently among the most expensive places to live, occupying half of the top ten spots in 2024. Switzerland leads this trend with Zurich (3), Geneva (4), Basel (5) and Bern (6) securing the highest positions for European cities, followed by London (8), Copenhagen (11) and Vienna (24). Closer to Luxembourg's ranking are Dublin (41), The Hague (44), Düsseldorf (51) and Oslo (52).
| Rank 2024 | City | Country/Region |
|---|---|---|
| 1 | Hong Kong | Hong Kong (SAR) |
| 2 | Singapore | Singapore |
| 3 | Zurich | Switzerland |
| 4 | Geneva | Switzerland |
| 5 | Basel | Switzerland |
| 6 | Bern | Switzerland |
| 7 | New York City, NY | United States |
| 8 | London | United Kingdom |
| 9 | Nassau | Bahamas |
| 10 | Los Angeles, CA | United States |
| ... | ||
| 47 | Luxembourg | Luxembourg |
| ... |
Shaping Luxembourg's cost of living
Luxembourg's rise in the Mercer ranking is due to multiple factors reflecting a broader global trend. General inflation, exchange-rate fluctuations, economic growth, and housing costs typically drive up living expenses, and Luxembourg is no exception. Additionally, increased economic and geopolitical volatility, along with local conflicts and emergencies, have contributed to higher costs worldwide.
While these factors add to rising costs, housing remains a major driver in the cost-of-living ranking, particularly in more expensive cities. In the case of Luxembourg, the housing market shows a notable gap between supply and demand. Limited availability of housing, coupled with high rental costs, drive up the cost of living. As housing dynamics continue to evolve worldwide, so will their impact on cost-of-living trends, influencing talent attraction and retention and potentially placing additional strain on organisations with employees in high-cost areas.
High quality of living in Luxembourg
Luxembourg ranked 16th out of 241 in the 2023 Quality of Living Survey by Mercer, making it one of the most appealing cities in Europe and worldwide. While cost of living is a significant factor organisations and employees increasingly prioritise safety and security in today's evolving global landscape, marked by conflicts and tensions. Luxembourg addresses these needs effectively, while also offering solid infrastructure and excellent connectivity.
Where do other cities stand?
Our neighbours are in similar positions with Paris coming in at rank 29, closely followed by Berlin at rank 31 and Brussels at 37.
The five most expensive cities, maintaining their ranks from last year, are:
- Hong Kong
- Singapore
- Zurich
- Geneva
- Basel
In top-ranked cities like Hong Kong, Singapore or Zurich, costly housing markets and elevated prices of goods and services contribute to the high living costs. On the opposite end, the most affordable cities are Abuja (226), Lagos (225), Islamabad (224), Bishkek (223), and Karachi (222), where lower living costs are partly due to currency depreciations.
Regarding index changes, Accra surged by 80 positions, likely due to inflation, reaching 98th place in 2024. Meanwhile, Lagos plummeted 178 ranks to 225, significantly influenced by currency devaluations.
Mercer's Cost of Living Survey
Mercer remains a leading provider of data on the cost of living for employees working abroad. To assist companies in calculating cost of living allowances, Mercer conducts comprehensive research worldwide, evaluating the comparative costs of more than 200 items, including housing, transportation, food, clothing, household goods, and entertainment.
The rankings illustrate how currency fluctuations, inflation, and other factors can impact the purchasing power of expatriate employees. Multinational companies use Mercer for accurate and relevant data to determine cost of living allowances for their skilled professionals on international assignments.
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