Home > Uncategorized > Most Expensive City for Locals Isn’t New York…

Most Expensive City for Locals Isn’t New York…

…but rather, Mumbai, according to this article.

How much would it cost for the average local to buy a luxury apartment in the world’s most important cities? In Singapore, it would take four decades of income. In Shanghai, two centuries. And in Mumbai — poor souls — they’d be looking at a good three centuries of hard work.

The obvious problem, of course, is comparing average income with luxury apartments. This study says a lot more about income disparity than it does about housing affordability.

Interesting numbers, sloppy work on the chart title.

UPDATE: The original Bloomberg piece the above article is based on is also full of sloppy writing.

Prime-location home prices in Mumbai averaged $11,400 a square meter in the quarter to Dec. 31, while India’s per-capita purchasing power was $3,700, the data show.

Two big problems: 1) comparing average Indian income to Mumbai housing prices is silly: average incomes in Mumbai are likely much higher than for India as a whole, and 2) “per-capita purchasing power” is the wrong thing to compare to the price of housing in nominal terms. You can’t buy a house with adjusted purchasing power–last I checked, banks wanted real money.

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Categories: Uncategorized
  1. marco golardi
    April 12, 2012 at 8:45 pm

    Is it true ? Can we assure the economy growth from apartment ?

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