The 15 most expensive cities in the world for renters
The London-based not-for-profit organisation compared major business cities around the world to assess the scale of the housing crisis in each, looking at the average monthly rental cost and the average annual share of net earnings from 2015.
Renters in Beijing spend an average of £550 ($789) on rent each month, which is a staggering 122.9% of the average person's salary. It's no wonder that the average daily commute in Beijing is 104 minutes long per round trip.
Residents of Abu Dhabi - the second most expensive city in the ranking - pay a hefty £1,714 ($2,460), or 69.5% of their salary, on rent. In third place, Hong Kong costs renters £1,345 ($1,930), which eats up 64% of their monthly paycheque.
"Big cities like Beijing are victims of their own success," Lesley Saville, CEO of the GCBA, said in a press release. "Rapid growth has magnetised workers, but they now need to deliver enough houses so that workers enjoy living there."
The least expensive monthly average rent can be found in Mexico City, with an average monthly rent of £268 ($385), followed by Sao Paulo, where rent costs £335 ($480). However, the GCBA's report found that even in the cheapest cities, rent is increasing rapidly. For example, Mexico City's rent has gone up by 44.2% since 2009.
Despite having the cheapest rent, Mexico City also had the longest average commute in the cities studied, running up to 113 minutes.
"The wealthiest workers will always be able to afford to live in the biggest cities, but the danger is that talented workers starting their careers in many sectors will find themselves priced out," Saville said in the press release.
Here are the 15 cities included in the report, ranked from most to least affordable, along with the average monthly rental cost and the average percentage of earnings spent on rent:
- 15. Boston, US - £1073 ($1,540)/30% of income
- 14. Sao Paulo, Brazil -£335 ($480)/30.2% of income
- 13. Sydney, Australia - £774 ($1,111)/32.1% of income
- 12. Singapore - £720 ($1,033)/33% of income
- 11. Chicago, US - £960 ($1,377)/35.6% of income
- 10. Paris, France - £613 ($880)/36.2% of income
- 9. London, UK - £997 ($1,430)/50.4% of income
- 8. San Francisco, US - £1,968 ($2,824)/50.5% of income
- 7. Dubai, United Arab Emirates - £893 ($1,281)/55.4% of income
- 6. Mexico City, Mexico - £268 ($385)/58% of income
- 5. Shanghai, China - £361 ($518)/58.3% of income
- 4. New York City, US - £,1832 ($2,629)/63.1% of income
- 3. Hong Kong, China - £1,345 ($1,930)/64% of income
- 2. Abu Dhabi, United Arab Emirates -£1,714 ($2,460)/69.5% of income
- 1. Beijing, China -£550 ($789)/122.9% of income