San Francisco and London most expensive cities to rent a home
San Francisco, London, Hong Kong and Tokyo are the most expensive cities in the world to rent a one bedroom apartment, according to new research.
Average rental prices account 47% of average salaries in San Francisco, 45% in London, 44% in Hong Kong and 42% in Tokyo, according to the rankings of 20 top cities around the globe.
The data from Barratt London shows that the average rent for a one bedroom home in San Francisco is £2,768 per month, some £1,250 in London, both of which are well above the £715 in Hong Kong while it is £1,165 in Tokyo.
However, London is still below the average of £2,532 in New York and the £1,558 in Sydney yet New Yorkers are spending 40% of their wage on rent, while Sydney residents spend just 28%.
The research also show that Prague and Cape Town are the cities most relative in respect to income and rental prices, with wage to rent ratios of 21% and 23% respectively. Dublin, where rents average at under £950, requires just 25% of its tenant’s salaries.
‘Rental prices in London continue to demand too much of the occupier, to the extent of almost half of their monthly pay cheque. Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first timer buyers,’ said A spokesman for Barratt London.
‘The London Help to Buy scheme, for example, is helping first time buyers get on the property ladder more affordably, with just a 5% deposit and an equity loan that is interest free for the first five years,’ the spokesman added.
Despite high rental prices, London’s home ownership rate at 38% falls well below other cities around the world. In Singapore, where rent demands 40% of average salaries, more than 90% of people own their own home. In Rome, where the wage to rent ratio is the same, home ownership is at 73%.