KUALA LUMPUR: People in this city are always moaning about the high cost of houses and the high cost of renting houses and apartments.
But, believe it or not, according to a study by US-based apartment search website Rentcafe, Kuala Lumpur is the most affordable city for renters in the world.
Rentcafe says those renting apartments in Kuala Lumpur need only spend about 20% of their income on rent.
It says the median household income of those in Kuala Lumpur is US$22,400 (RM96,052) and that average rental per year is about US$4,500 (RM19,296).
Rentcafe based its study on Pricewaterhousecoopers’ (PwC) latest Cities of Opportunity report which lists the best cities to work and live in. Kuala Lumpur is number 20 on this list.
London topped the PwC list, followed by Singapore and Toronto.
The Cities of Opportunities report ranked the 30 best cities by analysing indicators such as infrastructure, intellectual capital, sustainability and ease of doing business.
Using this information, Rentcafe looked at the incomes of people in these cities and whether this income was enough to afford rental apartments.
Rentcafe says if a household’s renting costs exceed 30%, it’s already considered to be rent-burdened.
So, according to this list, Kuala Lumpur is the cheapest place for those wanting to rent apartments.
Moscow is ranked number two, with Johannesburg in third spot. Others in the top 10 are: Bogota, Rio de Janeiro, Sao Paulo, Beijing, Shanghai, Sydney and Milan
On the other end of the spectrum stands Mexico City. It is the most rent-burdened of these cities of opportunity, with a staggering 60% of its income shelled out for rent.
Next from the bottom are Manhattan NYC (59%) and Lagos (57%).
Despite boasting the largest income, Singapore registers a moderate rent burden of 44%, says Rentcafe.