For a second year in a row, Toronto and Vancouver have been named the two most expensive cities in Canada, according to the 2023 Mercer Cost of Living survey.
The published Wednesday ranked Toronto 90th globally out of 227 cities that were included in the analysis, falling one position from last year.
Vancouver has maintained its position as the second-most expensive city in Canada but dropped by eight places to 116th worldwide.
Montreal ranked third-most expensive city in Canada and 135th globally. The city dropped 10 spots in the global ranking from last year.
The nation鈥檚 capital, Ottawa, came in at No. 4 as most expensive in the country, moving down five spots globally to 137. And Calgary, the last Canadian city on the list, was ranked fifth in Canada and 145th globally, having moved down four spots, according to the survey.
To determine the ranking, the platform measured the cost of more than 200 items including housing, transportation, food, clothing, household goods and entertainment in 227 countries in five continents.
During the current period of economic slowdown, Canadian cities have become slightly more affordable compared to other cities in the world, including in the U.S., those behind the analysis said, but cost of living has increased more year over year.
鈥淭hrough the Cost of Living Survey, we see that despite domestic inflationary pressures that are affecting the overall quality of living, Canada continues to be an attractive destination for remote workers,鈥 Nicole Stewart of Mercer Canada said in a published on Wednesday. 鈥淓xtensive remote work flexibility is causing many employees to re-shift their priorities and think differently about where they want to work and live, and this will continue to force organizations to develop effective compensation strategies for their globally distributed workforces.鈥
When it comes to the U.S., New York City continues to be the most expensive city in North America and sixth globally.
Following New York City, Los Angeles and San Francisco are the second and third most expensive cities in the U.S. and 11th and 14th globally, according to the survey.
While Canadian cities that have dropped in the ranking, American cities have gone up since last year.
Overall, Hong Kong has once again ranked as the most expensive city, followed by Singapore, which has risen six spots compared to last year and now sits second. Swiss cities 鈥 Zurich, Geneva, and Basel 鈥 taking the third, fourth, and fifth spots respectively.
And finally, two cities in Pakistan 鈥 Karachi and Islamabad 鈥 are among the least expensive locations for international employees in the ranking.
The survey expects that key factors that shaped the world economy last year such as inflation and key interest rate hikes, will continue to directly impact the pay and savings of employees who are internationally mobile, so flexibility is key.
These are the top 10 most expensive cities for international employees, according to Mercer Cost of Living survey:
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