from Statista.com
— this post authored by Martin Armstrong
At a time when huge numbers of young people can’t afford to buy their own home, the rental market is booming.
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The alternative for the so-called Generation Rent isn’t exactly attractive either, though. As more and more people flock to the major cities for bigger salaries and better opportunities, property owners are able to cash in on an often out of control rental market.
The rent burden can be measured by looking at the share of the average household income that the typical rent eats into each month. As our infographic below shows, based on data from RENTCafé the worst place for renters is Mexico City. With an oppressive 60 percent of earnings going to the landlord.
Further north in the U.S., the situation isn’t too much better. With 59 percent of the average salary being poured into rent in Manhattan, the New York borough is the second worst place on the list to be a renter. Those looking to move to LA and San Francisco should be prepared to kiss goodbye to 47 and 41 percent of their pay packet, respectively. Of the cities focused on here, Chicago would be the best bet, at 38 percent.
RENTCafé’s benchmark for burden-free rent is 30 percent. With this in mind, Germany’s cool capital Berlin might be a good option. Alternatively, the city with the best ratio was found to be Kuala Lumpur. Anyone renting in the Malaysian capital will be free to spend up to as much as 80 percent of their income as they so desire.
You will find more statistics at Statista.
