The top 20 vulnerable rental markets investors are banking on

Global cities ranked by price-to-rent multiples

TRD New York TRD WEEKEND EDITION /
Oct.October 01, 2017 01:42 PM

If an apartment needs to be rented for more than 30 years to pay for it, the rule of thumb, according to a new UBS report, is that the local housing market is vulnerable to a correction if interest rates increase. And that’s not all: according to the report, price-to-rent multiples also reveal investors’ expectation of a market’s capital gains.

So here’s a list of the 20 cities — from largest price-to-rent multiples to the lowest — that reveal where investors’ are staking their hopes and, simultaneously, which markets are vulnerable to regulation and policy changes. The list is measured according to the number of years an apartment of the same size needs to be rented in order to pay for the apartment at its current value.

1. Zurich – 37 years

2. Munich – 37 years

3. Stockholm – 35 years

4. Vancouver – 34 years

5. Paris – 33 years

6. London – 33 years

7. Hong Kong – 33 years

8. Singapore – 33 years

9. Milan – 32 years

10. Geneva – 32 years

11. Sydney – 29 years

12. Frankfurt – 29 years

13. New York – 28 years

14. Toronto – 27 years

15. Tokyo – 25 years

16. Amsterdam – 22 years

17. San Francisco – 22 years

18. Los Angeles – 19 years

19. Boston – 16 years

20. Chicago – 15 years

[UBS] — E.K. Hudson


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