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According to a report by Bloomberg the 10 most unaffordable cities relating to local salary income and how much percentage of income goes towards property rental/purchase are (figures based on an average 3 bedroom property):
1. Caracas
2. Kiev
3. Hanoi
4. Mumbai
5. Buenos Aires
6. Bogota
7. Moscow
8. Rio de Janeiro
9. Beijing
10. Shanghai
New York is ranked somewhere near the middle of the index and London is the most expensive city in western Europe where average monthly rent and mortgage payments equal 135% of monthly net income.
It would be interesting to investigate further and see how true these findings are. In the UK we have three main property websites where you can find almost every residential property available on the market in the UK. In order of market share:
Worst: Hong Kong, Shanghai, Beijing, London, and Tel Aviv. Extremely unaffordable in both the renting department and the buying department. Ultimate housing disasters.
Best: American big cities (excl. heavyweights like New York, LA, Bay Area, Seattle etc.). You can’t find another country where buying a house/apartment is as easy. Renting is pretty expensive though, even considering the high income.
A list of cities would be very different from the same criteria being used on a list of countries. These anomalies might mostly reflect the premium that goes with urban living, and not the comparative cost of housing in the listed regions.
Another thing we dont know is whether the numbers for each city are for the municipally defined city, or the metro area, which could shift things heavily. In many countries the cost of housing rises sharply in the inner city, and its dirt cheap in the suburbs, and just the opposite in other markets.
It would be interesting to investigate further and see how true these findings are.
These surveys are useful as general guidelines, but each person/family will have its own wealth/income/expense matrices as well as other measures according to unique circumstances and preferences.
Quote:
According to a report by Bloomberg the 10 most unaffordable cities relating to local salary income and how much percentage of income goes towards property rental/purchase are
Just for example, in major, even middling, global cities, especially coastal ones, wealth, mobile across capital markets, is a bigger determinant of affordability than local salary income.
Also, many people establish their own businesses, whose income can dwarf local salary income.
Big global, often coastal, cities are vibrant and expensive, including wealthy, highly skilled professionals and business people, capable of generating a high level of production, and local salary income is only a minor factor (for better and for worse).
Quote:
1. Caracas
2. Kiev
3. Hanoi
4. Mumbai 5. Buenos Aires
6. Bogota
7. Moscow 8. Rio de Janeiro
9. Beijing
10. Shanghai
Worth noting that people with mobile capital and at least half a brain move out of the cities bolded (many come to Miami and a few other US cities), leaving behind local chieftains and working or unemployed poor, all with less than half a brain and capable of little real production.
I suspect that circumstances in the Asian cities and Moscow need more explaining.
And people keep saying how Vancouver is so unaffordable... it certainly is when it comes to real estate but it's got nothing on the top cities on that list.
And people keep saying how Vancouver is so unaffordable... it certainly is when it comes to real estate but it's got nothing on the top cities on that list.
By North American standard it's amongst the worst one.
By North American standard it's amongst the worst one.
Why is it not only the list?
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