Ideally, rents should not exceed a third of pre-tax income, according to a popular rule of thumb. In Budapest, the average rent for apartments for rent in mid-February would be 37 percent of last year’s average gross salary in the capital. The ratio is the highest in district V, where this indicator is 44 percent, and in district XV, it is the cheapest with a result of 24 percent – writes vg.hu.
Just as the turnover in the housing market, the sublet market is also influenced by salaries, including the development of real wages. Based on the salary data and the rent ratio for the capital districts, Budapest as a whole and the districts that are the county seats, there are very serious differences in the country – it was revealed in a recent analysis based on ingtalan.com’s data and the earnings statistics of the KSH, which covers more than 14,000 landlords. took into account the rent of a residential property advertisement.
The affordability map is very colorful
If we look at the average wages in Budapest and the county seats, the apartments for rent in the capital are the most expensive compared to the average wages. However, for the wage data of a given district or city, it must be taken into account that, although an increasing proportion of tenants report themselves to the given address, not everyone does so, so the salary data of the latter do not or do not necessarily appear in the local earnings data – said László Balogh, the leading economic expert of ingtalan.com.
Explaining the data, he said: Last year, the gross average wage in Budapest was HUF 697,000, compared to this, the average rent was HUF 250,000 in mid-February, which represents a 36 percent rate. The ratio is slightly lower, but similar in magnitude, 33-33 percent in Debrecen and Székesfehérvár. In the former city, the HUF 200,000 rent is accompanied by an average district salary of HUF 599,000. The seat of Fejér County has a rent of HUF 205,000 and a gross HUF of 620,000.
In Veszprém, Győr and Pécs, the ratio is more favorable, the rental fee of 150-180 thousand forints comes from 26 percent of the average gross salary of 581-694 thousand forints in the given district. In Szolnok, Szekszárd and Miskolc, which are among the large university towns, the cheapest sublettings in this comparison are 18-20 percent. Because the 100-120 thousand HUF rent can be financed from 539-553 thousand gross.
