Bangkok, Thailand’s capital city, has distinguished itself as the least affordable city in the world for renters, as per the Housing Affordability Review 2025. The report, compiled by Germany’s DWS, indicates that the average middle-class family in Bangkok spends nearly 79% of their disposable income on renting a two-bedroom apartment.
The city’s inflated rental prices are primarily due to a scarcity of condominiums. The second quarter saw condo availability drop to a 16-year low, a situation exacerbated by climbing construction costs and high-interest rates.
Following Bangkok, Mumbai and Mexico City were ranked second and third as the least affordable cities, with renters spending 66% of their disposable income on rent. Hong Kong came in fourth at just over 60%, and Johannesburg, South Africa, was in fifth place at approximately 58%. These cities are part of a group of 24 global cities with the most challenging rental markets. Other Asian cities on this list include Manila, Beijing, Hanoi, and Singapore.
The study analyzed the rent to median disposable income ratio in 80 cities. A lower ratio signifies more affordable rent, with the worldwide average ratio standing at 38%.
On the other end of the spectrum, Salt Lake City was deemed the most affordable city, with a ratio of 20%. Leipzig and Austin followed closely, both featuring a ratio of 23%.
Cities that ranked lower in affordability experienced a more significant decrease in affordability ratios compared to those ranking higher. Additionally, these cities saw their remaining spending power increase at a slower rate compared to cities demonstrating more economic resilience.
The report also calculated the disposable income households have left after paying their monthly rent. Singapore topped the list globally with approximately $8,000 of leftover income, which is twice the global average. San Francisco followed with $7,650, and Abu Dhabi was third with $7,000.
According to the report, wealthier cities typically benefit from high-income levels and balanced housing costs, which allows residents to retain robust purchasing power even after paying rent.
What factors contribute to Bangkok’s high rental rates?
A lack of available condos, heightened construction costs, and high-interest rates are all factors that contribute to Bangkok’s high rental rates.
Which city has the most affordable rental market?
Salt Lake City is considered the most affordable city for renters, with a rent to disposable income ratio of 20%.
Which cities have the highest disposable income after rent payments?
Singapore, San Francisco, and Abu Dhabi lead the world in terms of disposable income after rent, with Singapore households having an average of $8,000 left over.
