Rome (Italy), London (United Kingdom) and Lisbon are the three cities where it is most expensive to live, taking into account the average disposable income of people when compared to housing prices and the cost of living, according to a study by insurance company CIA Landlord.
The study, entitled “The Cost of Living Crisis: How big is the gap between outgoings and incomings around the world?”, compared several cities based on the value of the available salary that people are left with after subtracting the cost of living and renting a 3 bedroom property.
The survey found that in Lisbon, the average net salary is 878 pounds (€1,037), the cost of renting a T3 is 1,377 pounds (€1,625) and the average cost of living is 475 pounds (€561). In other words, those who want to live in the capital will need, in this scenario, to have savings or other sources of income, since the available disposable income when discounting these two factors is minus 974 pounds (minus €1,149).
There is huge imbalance between income and living cost
By Johan from Algarve on 26 May 2022, 22:13
This makes zero sense. Why would a single person rent a T3? And if it is not a single person....the income wont just be €1,037 will it, it will be at least double that. Completely pointless "study".
By John Smith from Lisbon on 27 May 2022, 19:42
cheap money for purchasing houses has made owning your own home unaffordable for many. it never seemed like a good idea dropping mortgage rates so low that buyers went on a feeding frenzy. realistic mortgage rates help keep prices in check.
By Ian from Other on 28 May 2022, 06:33
John Smith, I believe that your comment makes less sense. Assuming that the salary of 2 people together is gonna be AT LEAST the double of 1037€ is quite optimistic for the average family.
Won't even mention that in most of the cases that won't be values after taxes. If the average person is making around 1k€ a month, is paying around 200€ in taxes, that's 800€ net.
But, yeah pointless study and real state market is not over priced at all.
By Filipe from Lisbon on 31 May 2022, 14:43