Bangkok Tops Global List as Least Affordable City for Renters, the priciest city in terms of rent-to-income ratio
Bangkok has been labelled the least affordable city in the world for renters, according to the Housing Affordability Review 2025 by German asset manager DWS. The report highlights that a typical median household in Bangkok spends approximately 79% of their disposable income on renting a two-bedroom flat, marking the Thai capital as the priciest city in terms of rent-to-income ratio.
This year’s findings are consistent with DWS’ inaugural study from last year, which also ranked Bangkok as the least affordable. The sharp increase in rental costs is attributed to a drop in condo supply, reaching a 16-year low due to high interest rates and rising construction expenses, as reported by Colliers Thailand. Following Bangkok are Mumbai and Mexico, with renters spending 66% of their income, while Hong Kong and Johannesburg take the fourth and fifth spots, with ratios above 60% and 58% respectively.
The report’s analysis of 80 cities worldwide indicates that a lower ratio signifies more affordable rents, with the global average standing at 38%. On the opposite end of the spectrum, Salt Lake City ranks as the most affordable city, with a rent-to-income ratio of just 20%, followed closely by Leipzig and Austin at 23%. The study notes that cities in the lower half of affordability have experienced a sharper decline in their ratios and slower growth in residual spending power compared to more economically robust cities.
DWS also examined the residual income households retain after rent. Singapore leads globally, with residents having an average leftover income of around 292,960 Thai baht, significantly higher than the global average. This ranking is followed by San Francisco and Abu Dhabi, with household residuals of 280,080 Thai baht and 256,000 Thai baht, respectively, showcasing these cities’ ability to maintain strong purchasing power post-rent.
Key Takeaways
- Bangkok ranks as the least affordable city for renters globally, with 79% income spent on rent.
- Salt Lake City is the most affordable, with a rent-to-income ratio of 20%.
- Singapore offers the highest residual income post-rent, doubling the global average.
Adapted by ASEAN Now from VN Express 2025-10-28
Source: https://aseannow.com/topic/1377223-bangkok-tops-global-list-as-least-affordable-city-for-renters
