A comparison across 75 global cities shows that earning a high salary does not automatically mean greater housing affordability. One of the key factors is the ratio between local incomes and property prices.
The comparison takes into account the average monthly net salary after taxes and the price per square meter of apartments outside the city center. Calculations show how many square meters of housing can be purchased with one year of net salary.
Although Zurich, Switzerland, tops the list with a monthly net salary of 8,160 dollars, it ranks 47th among 75 cities in housing affordability, with an indicator of only 6 square meters. This figure is 12.4 square meters in Rotterdam, Netherlands, and 11.7 square meters in Frankfurt, Germany.
While an annual net salary in New York, USA, is enough to buy 9.4 square meters of housing, the figure drops to 7.2 square meters for London, and 4.3 square meters for Paris and Lisbon.
Other findings indicate that in 63 out of the 75 cities, an annual net salary can buy less than 10 square meters of housing. In 16 cities, this figure falls below 5 square meters.
The difference between Leipzig, Germany, and Hong Kong is also striking. Although the average monthly net salary in both cities is approximately 3,200 dollars, an annual salary equals 16.3 square meters of housing in Leipzig, compared to only 2.2 square meters in Hong Kong. Consequently, the same income allows a buyer to acquire about 7.4 times more residential space in Leipzig.
