Beijing Least Affordable City for Renting in the World
Beijing is the least affordable place to rent in the world, according to a new report from the Global Cities Business Alliance.
The London-based not-for-profit organisation compared major business cities around the world to assess the scale of the housing crisis in each, looking at the average monthly rental cost and the average annual share of net earnings from 2015.
Out of the 15 cities in the study, Beijing, with an average renting price of more than 5,000 yuan ($789) per month, is the least affordable given local salary levels, according to the report.
"Beijing's average housing cost accounts for 122.9% of net earnings, suggesting that a worker on an average salary cannot live alone in typical city accommodation," stated the report.
The renting price spikes come as China's property sector has staged a revival over the last couple of months. Beijing saw home price rise 18 percent in the year to March, and restrictions on non-residents buying housing until they have paid tax in the city for five years makes renting the only option for many.
In part due to high rents, the city also has the second-longest commute, an average of 104 minutes per round trip, ranking only after Mexico City. Abu Dhabi, with rental costs equal to 69.5 percent of local net earnings, comes as a distant second in terms of affordability. China's Hong Kong ranks third and Shanghai ranks fifth. San Francisco claimed the title for the most expensive average monthly rent topping $2,824 in 2015.