How much salary do single and family households need to earn in order to afford rent in neighbourhoods around the globe?
At Nestpick, we help people to relocate from all over the world, so we know first-hand the importance of settling into the right neighbourhood. As a company taking a global approach to the real estate market, we’ve always been fascinated with how the cost of an apartment varies not only from city to city, and country to country, but from one street corner to the next. This price index, the first of its kind in terms of size and scope of comparison, illustrates both the affordability and inequality gap in cities around the world.
To begin the research, we first compiled a list of cities around the globe that are attracting influxes of highly skilled workers, as well as those which are popular with individuals looking for lifestyle or economic opportunities. We then determined the current trending cost per square metre of apartment space by neighbourhood, which is reflective of what an individual would find if they were searching for an apartment today. To give the data a human perspective, we calculated:
“As companies and cities battle to attract a highly skilled workforce, the reality of disposable income and cost of living has become more important than mere salary alone. With this in mind, we’ve undertaken this study to help those looking to relocate in the near future understand where their salary will stretch the furthest.” comments Ömer Kücükdere, Managing Director of Nestpick. “A byproduct of this data has been that we’ve confirmed the gap of inequality that exists within certain cities. In some cases, an individual working on minimum wage might need to work over 500 hours just to afford one month’s rent in a particular neighbourhood.”
The final index is then ranked from highest to lowest by the monthly salary required, using the average of the single and family data (based on listed rental prices available January 2019).
*Note: Rental prices are the median costs available in the past quarter for apartments (not houses),
reflective of what a person newly moving to each city would find when looking for somewhere to live.
|Rank||Location||Neighbourhood||Single Person Apartment||Family Apartment||Inquality||Earnings|
The 2019 Neighbourhood Price Index determines the current trending cost of renting an apartment in neighbourhoods around the globe, as well as their respective affordability. The prices are therefore reflective of what an individual would find if they were searching for an apartment today. The study covers over 700 neighbourhoods in 50 cities around the world. These cities were chosen because they are either attracting influxes of highly skilled workers, or they are popular with individuals looking for lifestyle or economic opportunities.
The rent price is per square meter for an unfurnished apartment, and is split between a single person and a family size. To determine affordability, the study has included the average salary required, the deviation % (how more or less expensive a neighbourhood is compared to the average in each city), the disposable income required to afford rent and the number of hours on minimum wage an individual must work to afford rent in each neighbourhoods.
Neighbourhoods and districts are defined in myriad ways around the world, so for the purpose of this study, the research utilised the city divisions most commonly used in the real estate market.
Below you can find a description of each factor within the study and the sources used.
Single Person Apartment
Monthly Salary Required
% Deviation from Median Price per City
% of Disposable Income Required to Pay Rent
Hours of Work on Minimum Wage to Pay Monthly Rent
Currency exchange correct as of 11.01.2019
Correction Note: As of 29.01.2019, neighborhoods with the name ‘Downtown’ and ‘West’ were updated due to a technical error.