For the third consecutive year, Toronto has been named the most expensive city in Canada for international employees, according to consulting firm Mercer's annual Cost of Living City Ranking. 

The yearly report helps international employers plan compensation for their employees and highlights how rising housing costs and inflation are reducing purchasing power and increasing operational costs. 

Out of the 226 global cities analyzed in the study, Canadian cities are at the more affordable end, with the exception of Toronto, which continues to be a pricey place to call home for newcomers — thanks to its sky-high rent and expensive neighbourhoods. 

Despite this, Toronto sits at #92 globally and is the only Canadian city to actually improve in affordability since last year, when it ranked #90. Unsurprisingly, Vancouver remains the second most expensive city in Canada, jumping 15 spots to #101 from #116 last year. 

The study measured the comparative cost of more than 200 items in each location, including transportation, food, clothing, household goods, and entertainment. 

The study notes that several factors continued to have an impact on the cost of living in major cities — including Toronto — throughout 2024, such as inflation and heightened economic and geopolitical volatility. 

"Despite economic headwinds, in 2024, we've seen the Canadian economy show resilience and it is outperforming expectations," said Vince Cordova, Mercer's North American mobility advisory lead.

"While concerns around cost of living remain, the labour market continues to show it's on solid ground, making Canada an attractive destination for inbound foreign nationals. We are seeing signs of stability and inflation is gradually decreasing, but organizations need to remain vigilant in planning effective compensation strategies for their globally distributed workforces," Cordova explained.

"Additionally, employers should be open about sharing cost of living and net pay information with prospective inbound staff so they can better understand the financial impacts of their relocation to Canada and make a fully informed decision on whether or not to move ahead."

Of the 10 most expensive cities for international workers, half of them are located in western Europe, with Switzerland being home to four. In North America, New York City (#7) remains the most expensive city, followed by Nassau (#9), Los Angeles (#10), Honolulu (#12), and San Francisco (#13). 

Other Canadian cities highlighted on the list include Montreal (#118), Ottawa (#126), and Calgary (#141). 

Here are the top 10 most expensive cities for international employees in 2024: 

1. Hong Kong 
2. Singapore 
3. Zurich, Switzerland
4. Geneva, Switzerland 
5. Basel, Switzerland 
6. Bern, Switzerland 
7. New York City, U.S.
8. London, U.K. 
9. Nassau, Bahamas 
10. Los Angeles, U.S.