# Mercer 2010 Cost of Living Survey



## ACT7 (Oct 3, 2006)

Not sure if there is already a thread for this but if not I thought I would start one. Here is a link to Mercer's 2010 cost of living survey for the cities the most expensive to live for expats. Is it just me or is this list becoming a bit more ridiculous every year? I understand that finding a good home in Chad may be difficult for expats but I find it very hard to believe that it's a more expensive place to live than NYC, or any NA, European, or large Asian city. Some cities make sense, others simply don't...imho. Please don't turn this into a city vs. city thread.

http://www.finfacts.ie/costofliving.htm


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## pesto (Jun 29, 2009)

I have worked in international relocation from the American and European side. You have to remember that the purpose of these lists is to help large companies budget for relocating people. You are not going to send many people to Chad, but if you wish to provide them with living standards at all like Western standards (security, Western foods, child education, reliable water, power and phone service, etc.) it can get expensive.

It doesn't mean that the local landlords or restaurants charge locals more than they do in NYC or Tokyo. 

As the article notes, many of the cities end up being expensive because locally acceptable standards are so much lower than in the US. E.g., even in some nice Asian or European cities management or mid-level corporate employees live in homes that are very small or otherwise unacceptable by American standards, so the people relocated end up in residences that are considered luxury by local standards. 

Same for cars: an American is going to want a large, quality car with air conditioning, top stereo, top upholstery, etc. I once spent 6 months trying to convince an assignee that he didn't need A/C in Holland, but he got it anyway.


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## ACT7 (Oct 3, 2006)

pesto said:


> I have worked in international relocation from the American and European side. You have to remember that the purpose of these lists is to help large companies budget for relocating people. You are not going to send many people to Chad, but if you wish to provide them with living standards at all like Western standards (security, Western foods, child education, reliable water, power and phone service, etc.) it can get expensive.
> 
> It doesn't mean that the local landlords or restaurants charge locals more than they do in NYC or Tokyo.
> 
> ...


What I find inaccurate, I suppose, is that even in third world countries, the cost of accommodation, good food, transportation, etc, to cater to Westerners is not through the roof. I've lived overseas in both Europe and Africa and just as an example, to find a 4 bedroom, fully furnished apartment in Cairo's nicest neighbourhood, you're looking at roughly $800-$1,000 USD/mo. A far cry from any Western city. On the other hand, to find a 1 bedroom in Geneva you're talking about a minimum of $1,200 CHF/mo. So, definitely some cities on the list make total sense. My view is a little different I suppose. If you're living in a city earning the local currency, the cost of living should be on an equivalent currency basis. For example, if can of Coke costs $1 in the US and 1 Pound in London, if you're earning pounds working in London, you're on a level playing field as someone earning USD working in NYC. By the way, the last time I was in London a year ago, a can of Coke cost 85p.


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## Taller Better (Aug 27, 2005)

This surveys always devolve into a catfight about how unfair the listings of certain countries are, etc.. etc...


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## Ricbit (Dec 14, 2007)

Very good. Spain is very accessible, only in 49th and 52th places. Very nice!


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## goschio (Dec 2, 2002)

This list is made specifically for expariates from the US. So all depends on value of the US dollar relative to the local currencies. 

For expariates from the Euro-Zone or Japan, the list might be very different. For example the weak EURO at the moment makes many overseas cities very expensive while european cities become relative cheaper.


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## Jonesy55 (Jul 30, 2004)

ACT7 said:


> By the way, the last time I was in London a year ago, a can of Coke cost 85p.


That's another problem with these surveys, prices can vary wildly within a city. You might pay £0.85 for a can of coke in a local shop, in a large Tesco supermarket its more like £0.50, in a discount store/pound shop it's often 4 cans for £1 so £0.25 each, if you go to a vending machine in a major rail station or airport it might be £1.20. So which price do you use?


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## the spliff fairy (Oct 21, 2002)

Luanda, world's most expensive city and capital of the worlds fastest growing economy (Angola):


SCROLL>>>>>>








LMich, www.skyscraperpage.com


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## Ricbit (Dec 14, 2007)

It's nice to see Luanda growing up kay: But why all this cost? OMG, I think it isn't available for a city like it. I'd prefer to live in Tokyo that's the same cost of life or very near.


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## goschio (Dec 2, 2002)

Lunada is so expensive because it lacks housing and services. With further development it will certainly become much cheaper in the future.


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## ssiguy2 (Feb 19, 2005)

These things should be viewed as a guide line and that's all. They are good for that but not exact measurements. 
One thing that has to be kept in mind is that these stats reflect rentals and not real estate. If one was to purchase a property when moving then the figures would be very different. In Canada Tor/Mon/Van are reasonably close but if they were to have a category for comparing C.O.L. when purchasing a home they wouldn't even be in the same league. 
Vancouver is the most expensive place to purchase housing in the english speaking world. The prices are literally twice the price of Toronto and triple the price of Vancouver. Housing in Montreal is the same today as Vancouver was in 1990 and Toronto in 1998!


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## ssiguy2 (Feb 19, 2005)

Meant to say real estate is triple the price in Vancouver as it is in Montreal. 
Outside of BC & Alberta almost all mid/smaller cities have prices one quarter that of Vancouver. 
In Canada there are two real estate market comparisons..............BC and the rest of Canada.


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## ACT7 (Oct 3, 2006)

ssiguy2 said:


> These things should be viewed as a guide line and that's all. They are good for that but not exact measurements.
> One thing that has to be kept in mind is that these stats reflect rentals and not real estate. If one was to purchase a property when moving then the figures would be very different. In Canada Tor/Mon/Van are reasonably close but if they were to have a category for comparing C.O.L. when purchasing a home they wouldn't even be in the same league.
> Vancouver is the most expensive place to purchase housing in the english speaking world. The prices are literally twice the price of Toronto and triple the price of Vancouver. Housing in Montreal is the same today as Vancouver was in 1990 and Toronto in 1998!


Yes, it's true that Vancouver is one of the most overpriced real estate markets in the world, however the greater Vancouver area's average house price is about $670K (very high yes, but not triple Greater Montreal and nowhere near triple Greater Toronto which are at $355K and $590K respectively). City of Vancouver proper alone is about $990K for a standard 2-storey whereas City of Toronto proper and City of Montreal proper for standard 2 storey homes are currently closer to about $700K and $450K respectively. (These number are from peers in the real estate business across the country). What I find interesting about this survey is that Ottawa is considered to be the least expensive Canadian city but the price of a standard two storey is about $355K. Compare that to a city like Winnipeg which is below the national average and is priced at about $250K for two storey. I realize that a lot of other things are taken into account to come up with the list but having lived in Dubai recently, I was able to find an excellent 1 bedroom + den apartment in the city center for the equivalent of about $1,200 CAD/mo. Not outrageous. Please share your stories, but again, not city vs. city.


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## Kensingtonian (Nov 8, 2008)

The weird thing is that rent in Toronto, Vancouver and Ottawa is pretty similar, but the cost of buying is dramatically different.


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## ACT7 (Oct 3, 2006)

Kensingtonian said:


> The weird thing is that rent in Toronto, Vancouver and Ottawa is pretty similar, but the cost of buying is dramatically different.


True dat! I've never actually looked at the full basket that Mercer uses, but another example would be the cost of transportation. Public transit in Toronto is $3, Vancouver and Ottawa I'm not sure but NYC is $2.25 plus you get bonus accumulated fare if you use a metro pass. Taxis in NYC are very cheap compared to other major cities (cheaper than almost anywhere in Canada) because of the sheer number of cabs and my guess, because of the type of regulation as well. Of course the cost of rent is sky-high in New York but you'll find food to be quite reasonable.


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