A new report has ranked Lagos, the nation’s
commercial nerve centre as the third least of
world cities that are highly unaffordable for
renters.

The report released by RENTCafé, a property
search website puts Lagos rent at $355 (N129,
575) per month while the household income is
$625 (N228, 125), making the city the third
behind Manhattan, New york city with 59 per
cent and Mexico City with 60 percent.

It also identified the three least cities as vibrant
urban hubs with thriving or emerging
economies but unaffordable for renters
The ranking is coming on heels of the global
professional services firm, Price Water
Corporation (Pwc) Opportunity report that
listed Lagos at 28 position of 30 cities.

In its latest Cities of Opportunity report, PwC
has also set up what is basically the shortlist of
the world’s best cities to work and live in.

The top-30 ranking is the result of an in-depth
analysis of the most prosperous global
business, finance and culture capitals, which
looks at 10 different indicators—including but
not limited to infrastructure, intellectual
capital, sustainability and ease of doing
business, all of them essential for a great
environment.

With the list, the researchers looked at how
much money do people earn in these cities and
whether these salaries are enough to afford a
rental apartment.

The implication of the recent report is renters
in Mexico City, Manhattan and Lagos face
severe rent burden, meaning that the rent
takes up more than half of a household’s
income each month (60 per cent, 59per cent
and 57per cent respectively).

In other words, in an average family with two
earners, one of them works only to pay the
rent, and it’s still not enough.
Lagos residents cough out an astounding 57per
cent of their income on rent, while in Mexico
City, the median household income barely hits
the $14,500 mark and yearly rent amounts to
$8,640 on avg.

That puts Mexico City first among the world’s
most unaffordable cities for renters with a
60per cent rent burden. Not even London,
which PwC declared the world’s best city to
live and work in escapes the affordability
woes.

The 40per cent rent-to-income ratio places UK’s
largest city among the moderately rent-
burdened global powerhouses of the world.

At the other end of the spectrum, Kuala
Lumpur emerges as the best choice for renters
in search of more relaxed lifestyles. Rent
barely takes 20per cent of the median
household income in Malaysia’s capital city.

In the study, the researchers looked at the
current rents in the top global financial
centres, but not restricted to cities with
outstanding activity in the financial sector, and
bringing into the equation the affordability of
local housing prices too.

According to the Communications Specialist
for RENTCafé, Amalia Otet, researchers used
the list of the world’s top cities of opportunity
as published in the latest issue of their Cities of
Opportunity report and study the overall
average rents or their US Dollar-equivalents
adjusted for inflation as necessary.

In the report, London slide back 21 places
when ranked by rental affordability, with
the seven out of the top 10 most affordable
cities of opportunity catapulted straight from
the lower third of the initial ranking.

“London is famously expensive. And so is LA.
But is this just an outside perception or the sad
reality? Our research team here at RENTCafé
looked at rental prices in the world’s 30 best
cities to live in and compared them with the
local median incomes to see just hom
(un)affordable these fine urban hotspots are”,
Otet noted.

According to the study, Kuala Lumpur, Moscow
and Johannesburg ranked as the most
affordable cities of opportunity from the 20th,
22nd and 24th places of the original ranking,
respectively

Also two South American markets on the 4th
and 5th places, Bogotá and Rio de Janeiro
moved the farthest from their original
positions—22 places up from 26th and 27th.

Speaking on the ranking, an, urban
development expert, Lookman Oshodi said the
ranking is not unexpected considering
spiraling inflation that the country has
witnessed in the past few years.
He noted that in the past two years, however,
most property owners have maintained rent
freeze.

Despite the freeze on the real rent cost,
property owners and renters alike, Oshodi said
have been dealing with costs ranging from
security, energy, water and road among other
housing related services.

“The energy crisis has further pushed housing
related cost to astronomical level as residents
need to fuel and repair their power systems,”
he added.

https://m.guardian.ng/property/lagos-ranked-worlds-third-unaffordable-city-for-renters/
CC LALASTICLALA
CC MYND44

Lazy Afonja youths come and tell us how the wise men has made rent highly unaffordable for you.

obamabinladen:
Lazy Afonja youths come and tell us how the wise men has made rent highly unaffordable for you.

What the hell are you saying?