Mumbai: A survey has revealed that cities like Bangkok, Mumbai and Mexico City are facing acute affordability challenges and the housing rent consumes more than two-thirds of household income.
In the report titled 'Housing Affordability Review – 2025' report by German asset manager DWS, Bangkok tops and spends 79 percent of their income on paying rent, followed by Mumbai and Mexico City, where people spend 66 percent of their income on rent.
Other cities in the top 10 least affordable include Hong Kong (61%), Johannesburg, Lisbon, Manila, New York (53%), Tel Aviv, and London (52%), the report states. The study covered 80 cities worldwide, and about 29 of them recorded rent-to-income ratios above 40%, indicating widespread affordability issues.
The survey was conducted across 80 global cities, of which 29 cities – over one-third of the sample – exceed a rent-to-income ratio of 40 percent.
Why are these cities facing low affordability?
According to the report, the top five cities are marked by high rent burdens and limited disposable income, often compounded by rapid urban growth, income inequality and constrained housing supply. Even Hong Kong, a city perceived as wealthy, is facing affordability constraints when considering median household incomes.
Speaking of low affordability across the global centres of New York, Paris, Tokyo and London, this according tot he report reflects, density and limited housing supply, which highlights a willingness from some residents to pay a premium to live in a globally renowned centre.
Which Indian cities are analysed in the report?
In India, the study found that apart from Mumbai, cities like Bengaluru and Chennai also struggle with unaffordability due to soaring rents and slower income growth. Kolkata was ranked in the average affordability range, while Delhi was rated as one of the most affordable cities in the country.
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