While cities like New York, London, Zurich, and Singapore are often seen as the world’s most expensive places to live, a new study reveals a different reality when focusing solely on rental affordability. According to a report by German asset manager DWS, the least affordable cities for renting are Bangkok, Mumbai, and Mexico City—not the usual global hubs.
The study analyzed 80 cities, comparing median income and average rent to determine how much of residents’ earnings go toward housing. On average, households spent 38% of their income on rent—well above the standard 30% threshold. Bangkok topped the list, with residents spending 79% of their income on rent, followed by Mumbai at 66%, and Mexico City at just over two-thirds.
Four Indian cities, including Mumbai, were among the 29 global cities where residents spend more than 40% of their earnings on rent—Bengaluru ranked 19th and Chennai 20th. Due to lower median incomes, Indian cities rank poorly in disposable income after rent, with Chennai, Mumbai, and Kolkata among the lowest worldwide. In contrast, cities like Singapore and San Francisco remain costlier but offer far higher post-rent incomes.