When you take into account monthly spending such as groceries, running a car, bills, looking after a family as well as treating yourself now and then, the cost of living can really start to add up.
The single biggest cost that most of us face is either a mortgage or monthly rent payments, to help you can compare current accounts to find the right deal for you.
But how does the cost of rent compare to the many other costs in our lives? And how does this vary around the world?
If you’re considering whether you should rent or buy a home, here are the benefits of each to help you decide whether to rent or buy.
We’ve looked at the average cost of rent for a three-bed property in over 50 countries around the world and compared it to the cost of living for a family of four, including food shopping, utilities, transportation, leisure and more.
*Note that we’ve studied ‘developed’ nations according to the United Nations’ Human Development Index.
Average monthly rent (three bedrooms): £2,760
Family of four estimated monthly living costs: £2,732
Total monthly outgoings: £5,492
Rent as % of total monthly outgoings: 50.25%
Hong Kong is the only country on our list where the average person pays more for their rent than their living costs combined. The average three-bed property costs an average of £2,760 per month. That’s more or less equal to the monthly cost of looking after a family of four, which clocks in at £2,732 on average.
Average monthly rent (three bedrooms): £2,253
Family of four estimated monthly living costs: £2,532
Total monthly outgoings: £4,785
Rent as % of total monthly spending: 47.08%
Another small country in the East takes second place, Singapore, where the average rent takes up 47.08% of average expenditure. Again, it’s a nation well-known for its high cost of living and is also popular with expats from around the world, but if you’re planning on living here then you’ll certainly want to be aware of the potential costs!
Average monthly rent (three bedrooms): £1,705
Family of four estimated monthly living costs: £2,194
Total monthly outgoings: £3,899
Rent as % of total monthly spending: 43.73%
In third place is Qatar, where the average rent is £1,705, and while this is around a quarter lower than in Singapore, it still makes up 43.73% of the average monthly expenditure.
Rank | Country | Average monthly rent (three bedrooms) | Family of four estimated monthly living costs | Total monthly outgoings | Rent as % of total monthly spending |
---|---|---|---|---|---|
1 | Hong Kong | £2,760 | £2,732 | £5,492 | 50.25% |
2 | Singapore | £2,253 | £2,532 | £4,785 | 47.08% |
3 | Qatar | £1,705 | £2,194 | £3,899 | 43.73% |
4 | United Arab Emirates | £1,396 | £2,107 | £3,503 | 39.85% |
5 | Kuwait | £1,161 | £1,878 | £3,039 | 38.20% |
6 | Ireland | £1,505 | £2,538 | £4,043 | 37.22% |
7 | United States | £1,401 | £2,382 | £3,783 | 37.03% |
8 | Bahrain | £1,056 | £1,949 | £3,005 | 35.14% |
9 | Australia | £1,277 | £2,558 | £3,835 | 33.30% |
10 | New Zealand | £1,189 | £2,401 | £3,590 | 33.12% |
11 | Canada | £1,159 | £2,345 | £3,504 | 33.08% |
12 | United Kingdom | £1,093 | £2,270 | £3,363 | 32.50% |
13 | Malta | £1,115 | £2,320 | £3,435 | 32.46% |
14 | Netherlands | £1,249 | £2,613 | £3,862 | 32.34% |
15 | Poland | £674 | £1,416 | £2,090 | 32.25% |
16 | Germany | £1,038 | £2,256 | £3,294 | 31.51% |
17 | Portugal | £735 | £1,602 | £2,337 | 31.45% |
18 | Iceland | £1,508 | £3,338 | £4,846 | 31.12% |
19 | Switzerland | £1,900 | £4,228 | £6,128 | 31.01% |
20 | Denmark | £1,205 | £2,873 | £4,078 | 29.55% |
21 | Russia | £539 | £1,309 | £1,848 | 29.17% |
22 | Spain | £757 | £1,847 | £2,604 | 29.07% |
23 | Austria | £1,013 | £2,480 | £3,493 | 29.00% |
24 | Czech Republic | £636 | £1,582 | £2,218 | 28.67% |
25 | Israel | £1,083 | £2,733 | £3,816 | 28.38% |
Average monthly rent (three bedrooms): £424
Family of four estimated monthly living costs: £1,799
Total monthly outgoings: £2,223
Rent as % of total monthly spending: 19.07%
The country where rent payments will take up the smallest percentage of your finances is Saudi Arabia. Here, the average rent stands at £424, while the estimated cost of living adds up to £1,799, with rent therefore occupying just under a fifth of monthly outgoings.
Average monthly rent (three bedrooms): £451
Family of four estimated monthly living costs: £1,835
Total monthly outgoings: £2,286
Rent as % of total monthly spending: 19.73%
The European country with the lowest rent compared to cost of living is Greece, with rent taking up 19.73% of the average monthly expenditure. The average rent for a three-bed property here is £451, while other costs such as food, transport and clothing come to £1,835.
Average monthly rent (three bedrooms): £249
Family of four estimated monthly living costs: £989
Total monthly outgoings: £1,238
Rent as % of total monthly spending: 20.11%
The rent for Greece’s neighbour Turkey stands at a similar percentage, at 20.11%, but it also had the cheapest rent and average cost of living expenses out of any country that we looked at, at £249 and £989 respectively.
Rank | Country | Average monthly rent (three bedrooms) | Family of four estimated monthly living costs | Total monthly outgoings | Rent as % of total monthly spending |
---|---|---|---|---|---|
1 | Saudi Arabia | £424 | £1,799 | £2,223 | 19.07% |
2 | Greece | £451 | £1,835 | £2,286 | 19.73% |
3 | Turkey | £249 | £989 | £1,238 | 20.11% |
4 | Argentina | £300 | £1,161 | £1,461 | 20.53% |
5 | Croatia | £475 | £1,831 | £2,306 | 20.60% |
6 | Latvia | £332 | £1,279 | £1,611 | 20.61% |
7 | Bulgaria | £452 | £1,740 | £2,192 | 20.62% |
8 | Estonia | £531 | £1,806 | £2,337 | 22.72% |
9 | Uruguay | £485 | £1,639 | £2,124 | 22.83% |
10 | Romania | £369 | £1,236 | £1,605 | 22.99% |
11 | Azerbaijan | £317 | £1,054 | £1,371 | 23.12% |
12 | Chile | £507 | £1,667 | £2,174 | 23.32% |
13 | Malaysia | £363 | £1,180 | £1,543 | 23.53% |
14 | Kazakhstan | £334 | £1,081 | £1,415 | 23.60% |
15 | Belarus | £345 | £1,108 | £1,453 | 23.74% |
16 | Montenegro | £419 | £1,326 | £1,745 | 24.01% |
17 | Hungary | £442 | £1,395 | £1,837 | 24.06% |
18 | Lithuania | £496 | £1,537 | £2,033 | 24.40% |
19 | Italy | £755 | £2,261 | £3,016 | 25.03% |
20 | South Korea | £890 | £2,658 | £3,548 | 25.08% |
21 | Slovenia | £651 | £1,888 | £2,539 | 25.64% |
22 | Sweden | £919 | £2,569 | £3,488 | 26.35% |
23 | Belgium | £767 | £2,103 | £2,870 | 26.72% |
24 | Cyprus | £886 | £2,429 | £3,315 | 26.73% |
25 | Slovakia | £577 | £1,577 | £2,154 | 26.79% |
Average monthly rent (three bedrooms): £317
Average monthly household income: £444
Rent as % of household income: 71.49%
We also looked at how average rents stack up with earnings around the world and the nation where rent makes up the biggest percentage of income (by some distance) was Azerbaijan. The average rent in this country on the border between Europe and Asia is fairly low, at £317 per month, but with a monthly household income of just £444, 71.49% of income is spent on rent.
Average monthly rent (three bedrooms): £2,760
Average monthly household income: £4,195
Rent as % of household income: 65.80%
Rent takes up a large percentage of the average earnings in Hong Kong, which is to be expected with average rent prices as high as £2,760 per month. Although earnings are also high, at £4,195 per month for a household, this still means that rent takes up 65.80% of the household’s income.
Average monthly rent (three bedrooms): £1,115
Average monthly household income: £1,896
Rent as % of household income: 58.83%
The Mediterranean island of Malta has the third-highest rent compared to income, with rent taking up 58.83% of the average household income. While rent in Malta is relatively expensive at an average of £1,115 a month, earnings don’t quite match up, at £1,896 per household per month.
Rank | Country | Average monthly rent - three bedrooms (GBP) | Average monthly household income (GBP) | Rent as % of household income |
---|---|---|---|---|
1 | Azerbaijan | £317 | £444 | 71.49% |
2 | Hong Kong | £2,760 | £4,195 | 65.80% |
3 | Malta | £1,115 | £1,896 | 58.83% |
4 | Russia | £539 | £926 | 58.20% |
5 | Belarus | £345 | £609 | 56.62% |
6 | Uruguay | £485 | £873 | 55.54% |
7 | Kazakhstan | £334 | £601 | 55.51% |
8 | Chile | £507 | £919 | 55.19% |
9 | Portugal | £735 | £1,417 | 51.87% |
10 | Poland | £674 | £1,303 | 51.75% |
11 | Argentina | £300 | £597 | 50.29% |
12 | Montenegro | £419 | £843 | 49.67% |
13 | Bahrain | £1,056 | £2,188 | 48.25% |
14 | Kuwait | £1,161 | £2,708 | 42.89% |
15 | Singapore | £2,253 | £5,438 | 41.43% |
16 | Turkey | £249 | £601 | 41.38% |
17 | Slovakia | £577 | £1,444 | 39.95% |
18 | Qatar | £1,705 | £4,358 | 39.14% |
19 | Cyprus | £767 | £2,037 | 37.68% |
20 | Romania | £369 | £989 | 37.30% |
21 | Czech Republic | £636 | £1,791 | 35.51% |
22 | Greece | £451 | £1,275 | 35.39% |
23 | Ireland | £1,505 | £4,273 | 35.22% |
24 | Bulgaria | £332 | £947 | 35.12% |
25 | United Arab Emirates | £1,396 | £3,981 | 35.06% |
When it comes to renting a three-bed property, the most expensive of the countries that we looked at was Hong Kong, with an average monthly rent of £2,760. A densely populated nation with seven and a half million people squeezed into just 1,110 square kilometres, demand for housing is high in Hong Kong, which probably goes some way to explaining these sky-high prices!
It’s a similar situation in Singapore, where rent costs, on average, £2,253. Singapore is another very densely populated country with land for new buildings at a premium. Many locals live in government HDB flats which offer a slightly more affordable route into the rental market.
Switzerland is known for its expensive cost of living (estimated at around £4,228 a month for a family of four), and the expensive cost of buying property means that many choose to rent instead. However, renting is clearly an expensive option too, with average monthly rent standing at around £1,900.
Rank | Country | Average monthly rent (three bedrooms) |
1 | Hong Kong | £2,760 |
2 | Singapore | £2,253 |
3 | Switzerland | £1,900 |
4 | Qatar | £1,705 |
5 | Iceland | £1,508 |
6 | Ireland | £1,505 |
7 | United States | £1,401 |
8 | United Arab Emirates | £1,396 |
9 | Australia | £1,277 |
10 | Netherlands | £1,249 |
11 | Norway | £1,225 |
12 | Denmark | £1,205 |
13 | New Zealand | £1,189 |
14 | Kuwait | £1,161 |
15 | Canada | £1,159 |
16 | Malta | £1,115 |
17 | United Kingdom | £1,093 |
18 | Israel | £1,083 |
19 | Bahrain | £1,056 |
20 | Japan | £1,048 |
21 | Germany | £1,038 |
22 | Austria | £1,013 |
23 | France | £952 |
24 | Finland | £930 |
25 | Sweden | £919 |
26 | South Korea | £890 |
27 | Belgium | £886 |
28 | Cyprus | £767 |
29 | Spain | £757 |
30 | Italy | £755 |
31 | Portugal | £735 |
32 | Poland | £674 |
33 | Slovenia | £651 |
34 | Czech Republic | £636 |
35 | Oman | £609 |
36 | Slovakia | £577 |
37 | Russia | £539 |
38 | Estonia | £531 |
39 | Chile | £507 |
40 | Lithuania | £496 |
41 | Uruguay | £485 |
42 | Croatia | £475 |
43 | Latvia | £452 |
44 | Greece | £451 |
45 | Hungary | £442 |
46 | Saudi Arabia | £424 |
47 | Montenegro | £419 |
48 | Romania | £369 |
49 | Malaysia | £363 |
50 | Belarus | £345 |
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