Dublin is among the least “financially viable” cities in the world to live in, according to a new report.
The study by UK insurance group CIA Landlord compared cities on the basis of disposable income.
This was determined by subtracting the cost of living and the average cost of rent from the average salary.
Dublin was found to be the seventh-most expensive or least financially viable city of 56 major cities worldwide.
The finding was made on the basis that average monthly salaries in the Irish capital were £2,559 (€3,035) while the average rent paid for a three-bed apartment in the city was £2,468.
When combined with a £754 cost-of-living expense, which included transportation, grocery shopping, utility bills, sports and leisure activities, childcare and clothing costs, consumers were left with a gap or shortfall between their monthly outgoings and incomings of £663.
Salary and expenses gap
The most expensive city was Rome where the gap between average salaries on one the hand and average rents and cost-of-living expenses on the other was £1,196
This was followed by London (-£1,071), Lisbon (-£974), Mexico City (-£851) , Paris (-£764) and Seoul (-£713).
The survey found that the average cost of renting a property in Rome was £1,750 per month.
While this was barely three-quarters of the rent paid for typical Dublin properties, the average Roman salary was just £1,222 which means workers’ paychecks do not cover their rent every month.
Unfortunately, this is also the case for London, Lisbon and Mexico City, Paris, Seoul and Dublin, the report said.
“While there is more awareness around the cost-of-living crisis, there is evidently a gap between salaries and bills, and this exists not just within the UK, but also across the world,” it said.
Income vs outgoings
“In order to conquer this, more needs to be done in relation to ensuring that workers can effectively manage their income and outgoings, whether that be increasing salaries or reducing rent to ensure they can break even per month,” it said.
The findings come amid a sharp acceleration in rents here. According to property website Daft.ie, rents across the State are now rising at an annual rate of 11.7 per cent.
The company’s latest quarterly report said there were just 851 homes to rent nationally on its website as of May 1st last, the lowest number since its quarterly series began in 2006.
According to Daft, the average monthly rent nationally stood at €1,567 in the first quarter of this year. This was more than twice the low of €765 per month seen just over a decade ago in late 2011 and more than 50 per cent higher than the Celtic Tiger peak of €1,030 per month, seen in the first quarter of 2008.