Neighborhood Price Index Reveals Expensive Budapest Rents
- 31 Jan 2019 10:01 AM
- Budapest Business Journal
According to the Neighborhood Price Index 2019 by Nestpick, a worldwide aggregator website for furnished apartments, a monthly salary as high as nearly EUR 1,720 (approx. HUF 545,000) may be needed in order to comfortably afford a single-person apartment in Budapest.
By Nestpickʼs calculations, in order to be able to afford an approximately 50 square-meter single-person apartment in Budapestʼs Districts 11 and 12, a monthly salary of EUR 1,718.75 is required, at a rent/sqm ratio of EUR 10.31.
In the same two districts, a family needs to earn some EUR 4,296.88 per month to afford a large family apartment (of about 105 sqm) at current rent prices (EUR 12.28/sqm for such apartments).
Living in these two districts will eat up just over 60% of disposable income at the given salary rates, the report notes.
The cheapest of the surveyed regions in Budapest are Districts 18 and 23. Here, to comfortably afford a single-person apartment means needing to earn a monthly wage of EUR 1,369.79, at a rent/sqm ratio of EUR 8.22.
For families, the required monthly income is EUR 2,578.42, at a rent/sqm ratio of EUR 7.37 per sqm. With these salaries, monthly rent takes up 47.87% of disposable income.
The Neighborhood Price Indexʼs most expensive districts around the globe include parts of London, Monaco, San Francisco, and Hong Kong.
The research defines a single-person apartment as one with an area of 50 sqm (+/-10 sqm), and a family apartment as one of 105 sqm (+/- 15 sqm). The index uses the definition of the United States statistical department to denote affordability.
To calculate the required monthly salary, the study multiplied rent/sqm by the average apartment size in the given city, and then multiplied the result by 10/3.
The full study can be found here.
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