BANGKOK, THAILAND – A new international housing study has identified Bangkok as the world’s most expensive city for tenants, with the average household spending an extraordinary 79% of its disposable income on rent.
The latest Housing Affordability Review 2025 by the German asset manager DWS paints a detailed picture of a housing market under mounting pressure.
Bangkok leads global unaffordability ranking
Bangkok retained its position at the top of the global rent burden list, surpassing Hong Kong and Mumbai. According to the review, the global average for rent expenditure stood at around 38%, less than half of Bangkok’s record level. Housing costs in the Thai capital have become increasingly detached from average incomes, leaving many residents with little financial breathing space.
Following Bangkok, Mumbai and Mexico City each recorded rent-to-income ratios of 66%, followed by Hong Kong at 61% and Johannesburg at 58%. The study concludes that Bangkok has become not only Asia’s most unaffordable city for renters but also the least affordable city worldwide.
Historic housing shortage squeezes the market
Analysts at Colliers Thailand attributed the situation largely to an historic shortage of housing supply. In the second quarter of the year, the number of available condominiums fell to the lowest level in 16 years.
A local property expert explained that rising base interest rates and escalating construction costs had virtually halted new housing developments. “HIGH INTEREST RATES AND SOARING BUILDING COSTS HAVE PRACTICALLY FROZEN THE MARKET,” the expert said, noting that limited supply allowed landlords to demand premium rents while most local salaries stagnated.
Asian cities dominate the lower end of affordability
Among the 24 least affordable cities, a significant proportion were based in Asia. Metropolises such as Manila, Beijing, Hanoi, and Singapore all featured prominently on the list. However, the study noted considerable variation in disposable income. In Singapore, households had an average of around 8,000 USD left after rent — a level far beyond what residents of Bangkok could retain.
By contrast, the report highlighted several mid-sized Western cities where rents consumed only a fraction of earnings. Salt Lake City registered 20%, Leipzig 23%, and Austin 23% — illustrating that affordability gaps between regions have widened dramatically.
Mounting social pressure in the Thai capital
The DWS report also issued a broader warning about the potential long-term consequences. Cities that ranked lowest for affordability tend to experience slower growth in disposable household spending and growing social strain.
“WHEN MOST OF YOUR INCOME GOES TO RENT, ECONOMIC MOBILITY STALLS,”
the report warned.
For Bangkok, researchers warned of deepening social divides. Wealthier expatriates and high-income Thais can still manage premium rents, but ordinary workers are being pushed to devote nearly all their income simply to maintain a roof over their heads. Experts foresee further rent increases if the shortage persists and no new housing incentives are introduced.
Uncertain path ahead
The findings rekindled debate over whether Bangkok’s housing market remains sustainable in its current form. Observers suggested that without policy intervention — such as measures to stimulate construction or regulate rent — affordability could deteriorate even further. For now, tenants across the city continue to face what DWS describes as an unprecedented financial squeeze.