The median rent for a one-bedroom apartment in the capital amounts to 68% of the average salary as of November 2024, which is a 6% increase compared to six months ago, according to a joint study on housing affordability by LUN and Work.ua.
The release notes that this collaborative analytical interactive project compares average salaries in the city with the median rental prices. Graphs are available across Ukraine, with data accounted for each regional center for one-, two-, and three-bedroom apartments.
Specifically, as of November, renting a one-bedroom apartment in the capital costs 68% of the city's average salary, while a two-bedroom costs 100% (+11%), and a three-bedroom costs 166% (+7% compared to April 2024). In Lviv, renting a one-bedroom will cost 80% (+6) of the average salary in the region, a two-bedroom 89% (+5%), and a three-bedroom 102% (+9%). In Odesa, one-bedrooms are at 43% (+8%), two-bedrooms 59% (+14%), and three-bedrooms 100% (+22%).
The highest percentage is in Uzhhorod (87%), while the lowest is in Kharkiv (21% of the salary).
LUN notes that if this indicator is considered in peacetime, a lower percentage indicates a higher level of prosperity in a given city. However, in wartime conditions, a low percentage is often linked to general danger (Kharkiv 21%, Mykolaiv and Zaporizhzhia 28%) and may be one of the reasons why some people do not move to safer regions.
In contrast, extremely high rental prices for one-bedrooms in relatively safe Uzhhorod (87%), Lviv (80%), and Ivano-Frankivsk (70% of the average salary) show that rental costs significantly exceed people's ability to afford them while maintaining their standard of living.
According to LUN analysts, the optimal practice worldwide is for housing expenses not to exceed 30% of total monthly income. In particular, in Western European countries, rent typically accounts for around 25-30% of income. For example, in Germany, the average salary is €3,741, with rent at 27.6%, ensuring a relatively balanced situation for most households. The challenge of balancing rental prices in major European cities is addressed through various measures. For instance, rent price caps are introduced, but as a consequence, this reduces the number of rental offers; communities operate their municipal housing with preferential prices for certain categories, and targeted subsidies, purchase lease programs, etc., are implemented.