Aerial view of the Chapalita sector, in Guadalajara, Mexico. Photo . Creatives
In the sixth place on the list, and with a difference of 53% between the most recent measurements from 2016 to 2020, Guadalajara, Mexico, was the Latin American city with the largest increase in the gap of the percentage of the average monthly net salary that is needed for the payment of rent or housing rental – from 52% in 2016 to 105% in 2020 -, from according to the British firm Online Mortgage Advisor –OMA–, among 352 cities that were part of this measurement.
This means that the total of the average monthly net salary that an inhabitant of this city receives is not enough to cover the payment of the rent of his house.
Conversely, Caracas, the Venezuelan capital, was the city in the world with the greatest decrease in this gap, with 949% less, going from 1,085% in 2016 to 136% in 2020, followed very closely, in fourth position, by City of Panama, with 54% less in the percentage of the average monthly net salary (161% in 2016 to 107% in 2020).
In both cases, however, the total of the average monthly net salary is still not sufficient for the payment of this concept, but the decrease in the percentage is encouraging for those people in search of a home that adjusts to their economic realities.
This Derby, England-based entity named 2014 Guardian startup of the year is dedicated to matching mortgage brokers that connects people to someone specifically based on their circumstances. His Priced Out Property study is frequently consulted to measure the housing accessibility gaps in different regions of the world.
For its study, OMA compared the average monthly net salary in each city with the average rental cost of a one-bedroom apartment in the center of the city to calculate its change in affordability between 2016 and 2020.
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Panoramic view of Caracas, capital of Venezuela (photo Valery Sharifulin / TASS via .)
The biggest increases
The study revealed that the city with the highest increase in the percentage of the average salary for rent or rental of housing on the planet was Lagos, Nigeria, with 267%, going from 172% in 2016 to 467% in 2020. That is to say , four times more than the average monthly net salary.
Behind Lagos, and before Guadalajara, were Tehran and Mashhad, both in Iran, with 95% and 74% increase; Manila, Philippines, with 64%; and Colombo, Sri Lanka, with 62%. All of them, by 2020, exceeded 100% of the percentage of the average monthly net salary for the payment of the rent or the rental of the house, even in Tehran this value was 209%.
In the top 10 of the cities with the greatest increase in this gap are also Guatemala city, with 45% (with 131% of the total salary allocated to this item in 2020), and Bogota, Colombia, with 32% (with 133% of the total salary allocated last year).
In the region, other capitals with more measured increases but equally high percentages were lime, with an increase of 30% and a percentage of 140% of the salary directed to the rent; Santiago de Chile, with a 14% increase and 67% of the salary required for this variable, and Buenos Aires, Argentina, with just 3% difference between 2016 and 2020, and a 52% portion of the salary to cancel this concept.
The biggest decreases
The case of Caracas is extraordinary in the world, and much more so in Latin America, a region where very few cities, included in the study, reflected reductions in the gap; in fact in South America only seven did.
In addition to the Venezuelan capital, Montevideo (Uruguay), Guayaquil and Quito (Ecuador), Florianópolis, Sao Paulo, Brasilia and Rio de Janeiro (Brazil) showed reductions between the measurements of 2016 and 2020 by OMA, none of them higher than 19% and four of them – all Brazilian cities – were by below 10%.
To carry out this study, OMA used data from Numbeo, the world’s largest cost of living database, whose CEO, Mladen Adamovic, explained to Yahoo Finance the methodology they use.
“To collect data, Numbeo relies on user input and data collected manually from authorized sources (supermarket websites, taxi company websites, government institutions, newspaper articles, other surveys, etc.). Data collected manually from established sources is entered twice a year, “the firm notes.
Real estate behavior in Guadalajara
According to data from Numbeo, the cost of renting a one-bedroom apartment in the downtown area of Gualadajara has an average of 9,260 Mexican pesos (about $ 467), compared to 10,866 Mexican pesos ($ 548) which is the average monthly net salary after taxes.
The real estate behavior in Guadalajara in the last year has been acceptable, in the concept of the Inmuebles 24 firm, which in its February 2021 market report for this city reported a drop in the rental price of a two-bedroom apartment from 6, 6% compared to February 2020, which considering inflation meant a real fall of 10.1%.
However, in the comparison of the price between 2018 and 2021, the value is very similar: from 10,891 Mexican pesos three years ago it remained at 10,892 in March of this year (the same 592 dollars in both references).