Briefly described, rent to income ratio is the amount or percentage of your salary that goes to rent. This ratio varies across the world, as it depends on the average salary and, of course, the real estate market. Although some countries may have a high average salary, they may also have high rent to income ratio. The lower the number, the more purchasing power individuals have. This means that real estate in their city is affordable considering the average income. Here is the rent to income ratio in 17 major cities across the world map.
Riyadh, Kingdom of Saudi Arabia
The average income in Riyadh is about $1,700. As for rent, it starts from as low as $300 and goes up to over $500. With cheap rental options, it is estimated that only 25% of an individual’s salary goes to rent.
Contrary to popular belief, rent is quite affordable in this Scandinavian country. Rent for a 1-bedroom apartment in Oslo ranges from $1,000 to $1,400. However, the average net salary is almost $3,200. This means that rent takes up only 28.8% of an individual’s expenses.
Japan is a mysterious country that always surprises us. Over here, you can rent a 1-bedroom from as little as $700 to $1,150. Average salaries are over $2,700, which means that rent makes up only 29.4% of monthly expenses.
Living in Paris means you could be making around $2,600 per month, and paying anywhere between $870-$1,200 for rent. So, on average, about 32.6% of the salary would be reserved for monthly rent.
In Manama, the average individual’s income adds up to approximately $1,800 after tax, with rent varying from $500-$1,000. Accordingly, a person may end up spending 32.6% of their salary on monthly rent.
People would expect that Geneva would have an extremely high rent to income ratio. However, that is not the case. Renting an apartment ranges from $1,400-$1,700, but the average salary is around $5.200. So rent only makes up 32.8% of monthly expenses.
1-bedroom apartments in Rome can be rented anywhere from $700 to $1,100. Now although the average salary after tax is $1,600, rent usually takes up only 33% of monthly expenses. Making Rome an affordable city for most.
In Munich, you can rent a 1-bedroom apartment at $800 to $1,100. If you are making the average salary of $2,900 after tax, you will end up spending just 34.2% of your income on monthly rent.
Beirut is a beautiful city, where you can rent an apartment between $500 and $1,100. Salaries average out to about $1,080. Despite that, you may end up paying only 34.3% of your salary on rent.
Things aren’t so bad in Muscat, where rentals range from $500-$900 per month. While on average, salaries are estimated at $1,800 after tax. This means that usually, only 34.3% of income goes out to rent.
It’s not so hard in Beijing, where you can rent a 1-bedroom from $540 to a little under $1,000. However, the average salary is around $1,240. This means that rent takes up 42.1% of an individual’s income.
A 1-bedroom apartment in Singapore is rented at anywhere between $1,300 to $2,000. With the average salary reaching a little over $3,000, rent makes up 43.1% of a person’s monthly income. Making Singapore among one of the most expensive cities to rent a home
London, United Kingdom
If you think living in London is cheap, think again. The average monthly salary after tax is around $2,800. As for rent, it ranges from $1,500-$2,200 for a 1-bedroom apartment. 44.1% of an average person’s salary will end up going to rent.
Dubai, United Arab Emirates
Dubai, where although the average salary stands at $3,340, rentals are not cheap to find. You can rent a 1-bedroom outside the center at $1,350 or opt for a 1-bedroom in the heart of the city at around $2,000. With soaring real estate prices, about 48.4% of a person’s salary is dedicated to monthly rent.
Once again, this GCC capital city has a high rent to income ratio. The average salary is estimated at $2,940 while rent ranges from $1,300-$2,000. This brings the ratio to 48.4% of an individual’s net income.
New York, United States
In New York City, monthly rent ranges from about $2,000 to $3,000. With the average salary measured at $4,400, a person will usually need to pay 48.9% of their total salary on rent. So think of that before moving to the Big Apple.
Hong Kong, Hong Kong
Life is hard in Hong Kong, especially if you’re making the average salary of $2,700. Renting a 1-bedroom apartment will cost you $1,400 to $2,200. With numbers that high, a person will most likely spend 50.4% of their income on rent.