Budapest ranked as the city with the highest rental prices in The Economist’s new report.
The latest Carrie Bradshaw index by The Economist has revealed that Budapest is the most expensive European city for solo flat rentals. This index, inspired by the iconic Sex and the City character, assesses the affordability of single occupancy flats in major cities across Europe.
Covering 35 European cities from Ankara to Warsaw, The Economist found that individuals should not pay more than 30% of their pre-tax income on rent for an average one-bedroom flat. To make comparisons easier, income figures were converted to USD.
London and Geneva topped the list as the most expensive European cities, requiring a minimum annual income of $95,000 to afford an average one-bedroom flat. On the other hand, Ankara emerged as the most affordable city, with just $18,000 annually needed for a one-bedroom flat.
Unfortunately, Budapest, along with several other cities in Central and Eastern Europe, was deemed unaffordable for renters. The Hungarian capital stood out as the most unaffordable city for solo occupants without their own apartment. Following Budapest were Prague and Lisbon, while cities like Zagreb, Bratislava, Sofia, Bucharest, Warsaw, and Ljubljana also faced hefty rental prices.
The Economist highlighted that the average wage in these cities falls short of what is required for rent, which may explain why many Hungarians seek work abroad. A growing number of Hungarians have found employment in Austria, as discussed in a previous article.
For more information on rental trends in Hungary and the impact of a “Mini Dubai” on the Budapest property market, readers can refer to other articles on the topic.
