Matt KendallMexico City has taken the crown as the most expensive city for renters, with a staggering 60% of its dwellers’ income spent on renting an apartment, according to a new study by RentCafe.
CDMX has beaten other cities that come close, such as Manhattan NYC (59%), Lagos (57%), Los Angeles (47%), and San Francisco (41%).
According to the study, South America boasts three of the most affordable cities for renters: São Paulo, Rio de Janeiro, and Bogotá, each with a rent-to-income ratio of 27%.
The study was calculated using the amount of annual median household income that goes toward paying the rent. “If a household’s renting costs exceed 30%, it’s already considered to be rent-burdened,” said RentCafe.
That does not sound right. What was the basis for comparison? Average price of rental vs. average income? or is this more specific?
Based on the study cited in the article, the median average rent in CDMX is US$8,640 per year (MX$12,700 per month), while the median average annual income is US$14,500 (MX$21,250 per month). This makes the average rent around 60% of the average income, yes. The original data for rent came from Infrastructure Mexico, while the income figures came from INEGI.