Rent/income ratio reached 40% in first-tier cities in China

In a typical shared apartment in Chaoyang District, Beijing, the 100 square meters area is divided into 6 bedrooms accommodating about 20 people usually. Each bed is pried 500-900 yuan per month.

According to the recently released data by the Beijing Municipal Bureau of Statistics, in April 2013, Beijing’s consumer price index rose by 3.2% including urban and suburban housing rents growth of 7.6%. Survey shows that the first-tier cities’ rent-income ratio has reached 40%, which means that addressing the basic needs of “residence” has become the main objective of many people working in these major cities such as Beijing, Shanghai and Guangzhou. It is believed that in case the rent to income ratio is further increased to 50% or 60%, it will produce significant crowding-out effect.

Source: 人民网

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