Almost every person in the world must have dreamt of living in New York or London and as per the common knowledge, these cities are expected to be the most expensive in the world.
Almost every person in the world must have dreamt of living in New York or London and as per the common knowledge, these cities are expected to be the most expensive in the world. Surprise! None of these two cities is at the top of the list. As per a study by UK based non-profit organisation, Global Cities Business Alliance, Beijing is the city with the least affordable rent, reported Reuters. The rent in Beijing eats up approximately 123 percent of the average salary. Yes, that is right! But only if you go by this calculation for a study by UK-based nonprofit organization, Global Cities Business Alliance. Reuters quoted it as saying, “Although Beijing’s nominal monthly rent is $789 on average, the ordinary worker cannot afford to live in typical housing alone, since rent costs exceed their salary.”
This has forced some citizens to take less conventional ways to deal with surging housing costs in Beijing. Some have started living in the small windowless basements of apartment buildings, or in one case, the sewers, Reuters reported.
The second and third in the list are Abu Dhabi and Hong Kong, where the monthly rent is 70 percent and 64 percent of the earning respectively. The organisation came to the result by analysing the rent and income data from 15 major cities. Lesley Saville, CEO of the Global Cities Business Alliance in a statement said,”Big cities like Beijing are victims of their own success: Rapid growth has magnetized workers, but they now need to deliver enough houses so that workers enjoy living there.” He added,”Beijing is trying to address the problem with measures such as building new underground lines to unlock housing and by directly funding development, which will help.”
In comparison to these, rent in New York and San Francisco has an average of approximately 63 percent and 51 percent of earnings respectively, as per the Fortune report. The rising rent in Beijing has pushed the workers further into surrounding areas. According to the Alliance, the average Beijing worker commutes 104 minutes, round trip, for their job—making it the city with the second longest commute time behind Mexico City, where employees travel 113 minutes, in the world.