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Is this an average for newly signed rent, or for the average one already paid now? If former, it looks incredibly low. I mean, this is what you pay for an above-average (but not posh) place in East Europe capitals, and for pretty much average ones in old European cities like Paris or Munich.
Those prices would mean a software engineer in Europe would not even have money for rent after paying taxes, much less anything else.
Is this an average for newly signed rent, or for the average one already paid now? If former, it looks incredibly low. I mean, this is what you pay for an above-average (but not posh) place in East Europe capitals, and for pretty much average ones in old European cities like Paris or Munich.
In Warsaw you would get top tier places with private pool and cleaning service for no more than 2500 USD per month.
Prices on the coasts — like 5k rent — are astronomically high compared to prices in, say, the midwest. This shocks many people.
You could easily make the same comparison between the midwest and some non-developed nation. The difference is, nobody is shocked about how prices are higher in the USA midwest compared to an arbitrary less-developed country. Why is that exactly?
I loathe these insane prices, but my question is: could it be reasonable to view these high prices as a /good/ thing, as a sign of development?
Is this an average for newly signed rent, or for the average one already paid now? If former, it looks incredibly low. I mean, this is what you pay for an above-average (but not posh) place in East Europe capitals, and for pretty much average ones in old European cities like Paris or Munich.
Per month?
Averages are skewed. Still. To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. Your Income Taxes Breakdown Tax / Marginal Tax Rate / Effective Tax Rate / 2021 Taxes* / Federal 35.00% / 25.05% / $75,152 FICA / 2.35% / 4.70% / $14,104 State / 6.85% / 6.12% / $18,356 L…
Those are mostly corporate landlords in large buildings. Many smaller landlords don’t have such stringent requirements. Source: rented and invested in NYC apartments for more than 20 years.
Earlier quoted context omitted.
These ratios are generally applied against gross (pre-tax) income.
That's the point? That's what I did using a calculator: https://smartasset.com/taxes/new-york-tax-calculator
> To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax.
The ratio is on pre-tax income. To pay $60K/yr in rent, you need 3x that in pre-tax income, or $180K/yr pre-tax. To earn $180K/yr pre-tax, you have to earn $180K/yr pre-tax, no calculator needed.
Is this an average for newly signed rent, or for the average one already paid now? If former, it looks incredibly low. I mean, this is what you pay for an above-average (but not posh) place in East Europe capitals, and for pretty much average ones in old European cities like Paris or Munich.
Presumably "per month"? Still cheaper than central London though.
https://www.rightmove.co.uk/property-to-rent/find.html?locat...
I guess it depends on your definition of central London.
Is this an average for newly signed rent, or for the average one already paid now? If former, it looks incredibly low. I mean, this is what you pay for an above-average (but not posh) place in East Europe capitals, and for pretty much average ones in old European cities like Paris or Munich.
> If those numbers seem low — after all there are headlines about 40% rent increases — it's because the CPI measure includes renewal rents, the price you pay when you renew your lease.