The Rent-to-Salary Ratio: A Comparative Analysis of 3 Major Cities

ntroduction:

When it comes to affordability, the relationship between residential rent and annual salaries is a critical factor to consider. In this article, we'll delve into the rent-to-salary ratio in three major cities - Mumbai, NCR (Delhi), and Bengaluru - exploring how much of their hard-earned cash residents are shelling out for a place to call home.

Analysis:

- Mumbai:

- Average annual salary: ?12,00,000

- Average monthly rent: ?45,000

- Rent-to-salary ratio: 42%

- NCR (Delhi):

- Average annual salary: ?10,00,000

- Average monthly rent: ?35,000

- Rent-to-salary ratio: 38%

- Bengaluru:

- Average annual salary: ?9,00,000

- Average monthly rent: ?28,000

- Rent-to-salary ratio: 31%

Based on the data, Bengaluru has the most affordable rent-to-salary ratio, with residents paying 31% of their annual salary towards rent. Mumbai has the highest ratio, with residents paying 42% of their annual salary towards rent.

High rent-to-salary ratios can have significant implications on residents' quality of life, including:

- Reduced savings and investment

- Increased financial stress