The findings of a new study conducted by apartment search platform RENTCafé expand the understanding of the rental housing markets in the world’s top financial centres.
The research explores the average monthly rent for one-bedroom apartments measuring between 55 and 85 square metres (600 and 999 square feet) in the 30 most powerful financial hubs in the world.
Among the most potent global financial centres – as ranked in Z/Yen Group‘s Global Financial Centres Index – New York City is home to the world’s highest rents, pegged at $3,680 per month for a one-bedroom apartment home.
Given the increasing global mobility of today’s workforce, the RENTCafé study aims to put rent prices in these cities in context for professionals working in the financial and economic sectors, and provide an overview of potential alternatives to the city they currently live and work in. While most of these urban business hubs have been well-known for asking high rents, the analysis reveals just how much a renter needs to shell out on housing every month and how these cities compare to each other when it comes to apartment rents.
Surprisingly enough, London – currently the leading financial centre of the world – is one of the least expensive cities for renters seeking the benefits associated with living in a thriving business hub. The British capital’s £1,351 average rent ($1,650 in US dollars) means it is only the 20th most expensive rental housing market among the world’s top financial centres.
New York City’s average $3,680 (£3,014) landed the home of Wall St. in 1st place, followed by two further US cities: San Francisco with $3,360 (£2,752) and Boston with $2,930 (£2,400).
Coincidentally, Hong Kong is in 4th place both when ranked by financial performance and average rent ($2,740 or £2,244). Other, financially lower-performing cities with higher rents than London include Geneva ($2,320 or £1,900), Zurich ($2,200 or £1,802), Singapore and Tokyo ($2,050 or £1,679), Sydney and Dubai ($2,040 or £1,671), Los Angeles ($2,030 or £1,663), Washington, DC ($1,940 or £1,589), Shanghai ($1,910 or £1,564), Beijing ($1,900 or £1,556) and Paris ($1,730 or £1,417).
The average rent for one-bedroom apartments in most of the top-performing financial markets is above the £1,000 mark ($1,221), but there are exceptions, like Toronto (£983 or $1,200), Munich (£909 or $1,100), Taipei (£745 or $910), Montreal (£696 or $850) and Casablanca (£674 or $820).
For the US cities analysed in the report, RENTCafé used average rent data provided by Yardi Matrix, the source for rents in Canadian cities was Point2Homes, and Global Property Guide provided the average rents for the remaining international markets, with the exception of London (GOV.UK), Tokyo and Osaka (Utinokati), Hong Kong (HK Rating and Valuation Department) and Dubai (Bayut).