Housing Affordability Measured in Working Days Across the Globe
A recent study by RationalFX reveals global real estate disparities by calculating the exact number of working days required to purchase one square meter of housing.
How much time must one work to afford a single square meter of housing? This is the question raised by a recent study from financial education and trading platform RationalFX, which analyzes the global real estate market through the lens of wage costs.
To evaluate the value of space concretely, the team cross-referenced data from the Numbeo database regarding residential real estate prices per square meter (both in city centers and outskirts) across 100 countries with local average net monthly salaries. The analysis calculates the number of working days required to acquire one square meter, while comparing the real estate purchasing power of a monthly salary to everyday objects.
Striking Global Disparities
The study's findings highlight a considerable gap between nations. South Africa and the United States emerge as the most affordable markets: workers there need roughly 13 to 15 days of work to afford a square meter. Despite this, a monthly salary only covers the equivalent of a small room component, such as a bathroom or shower stall.
At the other extreme, countries like Nigeria and Sri Lanka require 499 and 250 days of work respectively for the same result. Under these conditions, a month of income barely covers the surface of a small kitchen tray or a plate.
The Extremes of the Ranking
Countries where you need to work the least for 1 m²:
- South Africa: 13 days
- United States: 15 days
- Oman: 15 days
- Qatar: 20 days
- Saudi Arabia: 21 days
- Bahrain: 22 days
- Kuwait: 27 days
- Ireland: 27 days
- Belgium: 28 days
- Jordan: 29 days
Countries where you need to work the most for 1 m²:
- Nigeria: 499 days
- Sri Lanka: 250 days
- Cuba: 214 days
- Nepal: 168 days
- Hong Kong: 159 days
- Philippines: 151 days
- Vietnam: 141 days
- Indonesia: 118 days
- South Korea: 111 days
- Thailand: 103 days
Key Takeaways from the Study
Restricted accessibility: In 72 of the 100 countries analyzed, a monthly salary does not allow a worker to buy even half a square meter of space.
The high-salary paradox: Large incomes do not guarantee easy access to property. In Luxembourg, a net salary of €4,949 only buys 0.50 m². Switzerland, which boasts the highest average salary in Europe (€6,311), allows for the acquisition of just 0.38 m² per month.
The situation in Western Europe: The United Kingdom, Germany, France, and Italy all require between 33 and 36 days of work for a square meter, roughly equivalent to the surface of a dining table for two.
Marked imbalances: In Sri Lanka, an average price of €2,052 per square meter combined with a monthly salary of €178 puts the cost at 250 working days. In Nigeria, a monthly salary buys only 0.04 m² of surface area, while in Singapore, €3,655 per month yields 0.18 m², equivalent to the footprint of a cabin suitcase.
