As prices for housing fluctuate, it’s important to be mindful of how much of your wage you spend on rent. Every country has a mix of owners and renters, with demand for property pushing up rental prices. But which countries spend the most on rent?

Most rent is deemed affordable if it constitutes roughly 30% of a wage, as such, we found the average monthly wage and average monthly rent cost to find which countries spend the most of their wages on housing.

 

 

Ireland - The Highest Percent of Wages Spent on Rent

Ireland has ranked at the top of our study of Global Rent, with 40% of the average wage being spent on rent expenses. When it comes to average earnings, Ireland sits in 13th in our list of countries.

The difficulties faced by renters has been officially recognised by local authorities, with the introduction of ‘rent pressure zones’ preventing annual rent increases of more than 4%. In the capital, Dublin, less than 15% of rental properties pay less than €1,000 per month.

 

Where does rent take the biggest share of wages?

These 10 countries have more than 30% of their wages being spent on rent, suggesting their rental market is becoming harder to afford for lower incomes.

Ireland

40.19%

Portugal

38.31%

Luxembourg

37.85%

Israel

37.76%

Switzerland

35.08%

New Zealand

33.04%

Norway

32.00%

Czech Republic

31.91%

Iceland

31.88%

Japan

31.16%

 

 

Where is rent a lower portion of wages

The lowest 10 all achieve under a quarter of wages being spent on rent, with a difference of 21% between the opposites sides of the data, Greece and Ireland.

Greece

19.13%

Slovenia

19.14%

Latvia

20.99%

Lithuania

21.82%

Belgium

22.11%

Poland

23.35%

Korea

23.93%

Germany

24.16%

Austria

24.23%

Spain

24.72%

 

Is it any different for the highest salaries?

When looking at salaries, 3 of the 5 countries with the highest monthly wages, spend an average of more than 30% on rent. Although rent and average wages typically increase together, this data shows that in some countries the increase in rent, outpaces the growth in wages.

 

Monthly wage €

% spent on rent

Iceland

4,932.38

31.88%

Luxembourg

4,854.13

37.85%

Switzerland

4,754.75

35.08%

United States

4,679.40

28.78%

Denmark

4,679.40

27.17%

 

METHODOLOGY:

From the list of OECD countries, we used OECD data to find the average salary for each country, and derived a monthly wage from each.

We then used Numbeo’s crowdsourced property data, to find the average monthly rent rate for each country.

Using each of these, we were able to calculate the percentage of each monthly wage spent on rent.

 

OECD Countries & Average Salary

Wages from across each OECD country were aggregated, with the final figure taken from OECD.org

Average Monthly Rent Rate

For each country, average rent prices were taken from crowdsourced data from Numbeo.

To reach an average rental cost figure for each country, the prices for city and country apartments and houses were used to ensure a full representation of property types.

 

The full rent data can be accessed here

 

Disclaimer

All figures & data correct as of July 2019. A full list of sources and data can be viewed here.