HK spends over half of monthly outgoings on rent, highest in the world
Hong Kong citizens spend 50.25 percent of their monthly outgoings on rent, the highest percentage spend on rent in the world, according to a study.
The study also revealed that Hong Kong has the second-highest rent to income ratio in the world with rent taking up 65.8 percent of the household’s income.
The research by money.co.uk looked at the average cost of rent for a three-bed property in over 50 developed nations around the world and compared it to other costs of living for a family of four, as well as the country’s average household income.
Hong Kong was revealed to be the highest spending country on rent in comparison to overall monthly outgoings.
In fact, Hong Kong is the only country where the average person actually pays more for their rent than all the rest of their living costs combined. The average three-bed property costs an average of HK$29,653 (£2,760) per month, which is more or less equal to the monthly cost of looking after a family of four, which clocks in at HK$29,352 (£2,732) on average.
The nation with the highest rent to income ratio was Azerbaijan, with 70 percent of income spent on rent.
Rent also takes up a large percentage of the average earnings in Hong Kong, which is to be expected with average rent prices as high as HK$29,653 (£2,760) per month. Although earnings are also high, at HK$45,071 (£4,195) per month for a household, this still means that rent takes up 65.8 percent of the household’s income.
In comparison, Saudi Arabia has the lowest rent to income ratio of 17.44 percent.