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Business / 2016 Top 10

Top 10 least affordable cities to rent in the world

(chinadaily.com.cn) Updated: 2016-05-04 07:26

Beijing has the world's least affordable rental housing market, according to a survey of 15 global cities, with costs soaring to more than 1.2 times average wages.

San Francisco has the most expensive monthly rent of $2,824 in an absolute sense, while Beijing, $789 per month, is least affordable given local salary level, according to the report by UK-based not-for-profit organization Global Cities Business Alliance.

In part due to high rents, the city also has the second-longest commute, an average of 104 minutes per round trip, ranking only after Mexico City.

The rent spikes come as China's property sector has staged a revival over the last couple of months. Beijing saw home price rise 18 percent in the year to March, and restrictions on non-residents buying housing until they have paid tax in the city for five years makes renting the only option for many.

For bus drivers, nurses and primary school teachers in the city, the average cost of housing exceeded their annual disposable income level in 2015, the findings showed.

"Beijing's average housing cost suggests that a worker on an average salary cannot live alone in typical city accommodation," said the report.

Abu Dhabi only comes as a distant second in terms of affordability, with rental costs equal to 69.5 percent of local net earnings, followed by Hong Kong as a third.

Here, let's take a look at the top 10 least affordable cities to rent in the world.

10. Paris

Annual rent: 36.2 percent of net earnings

Top 10 least affordable cities to rent in the world

People in Paris spend a total of 23 days a year on commuting, latest study shows, April 18, 2016. [Photo/IC]

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