This article will explore the impact of rising rents on expats and the reasons behind this trend. We will look at the cities where expats are facing the most significant challenges and what this means for the future of expat communities in these places. Additionally, we will offer some tips on how expats can cope with rising rents and continue to enjoy their time abroad.
Popular expat destinations where rent prices are on the rise
There are many popular expat destinations worldwide where rent prices have been steadily increasing in recent years. Some of the cities where expats are feeling the pinch the most include:
Singapore
Known for its high standard of living and booming economy, Singapore has become a popular destination for expats. However, the cost of living in the city-state is among the highest in the world, and rent prices have been steadily increasing in recent years. In fact, Singapore has been ranked as the joint-most expensive city in the world alongside New York, according to the latest annual World Cost of Living Report by the Economist Intelligence Unit.
Expats in Singapore have been speaking out about the challenges of finding affordable housing in the city. Some have shared their experiences on online forums, such as this Singapore thread of Expat.com Forum. When one of the forum members inquired about the cost of living in Singapore, an expat living in Singapore replied that “house rent has increased 60% compared to 2022 and 90% compared to 2021”.
The situation is exacerbated by the fact that expats do not receive the same subsidies as locals. Additionally, some expat families have been affected by recent legislative changes prohibiting dependent pass holders from working, causing them to become single-income households.
Despite the challenges, there are still ways for expats to cope with the rising rent prices in Singapore. Some have recommended looking for accommodation in areas outside of the central business district, where rent prices are generally lower. Others have suggested sharing a flat with roommates or negotiating with landlords to try and secure a better deal.
Rising rent prices in Singapore have also affected foreign companies and their employees. According to a recent EuroCham survey, if business costs do not decrease or the government does not intervene to provide assistance, Singapore may lose its appeal to foreign companies who may opt to move their offices to neighboring countries.
Overall, the rising rent prices in Singapore are making it increasingly challenging for expats to afford to live in the city. However, with no sign of the trend slowing down, it is important for expats to be aware of the costs and plan accordingly.
Hong Kong
Hong Kong is another popular expat destination that has been impacted by rising rent prices. According to HongKongBusiness, high street rents in Hong Kong are expected to grow by an additional 8% in 2023. This trend is making it increasingly difficult for expats to afford to live in the city, which has long been a hub for international business and finance.
Expat testimonies reveal that finding affordable housing in Hong Kong can be a significant challenge. In an article by the South China Morning Post, one expat shared her experience of struggling to find a suitable apartment within her budget. She eventually had to settle for a smaller space in a less desirable neighborhood than she had hoped. Another expat shared her story on the website ExpatWoman, describing the city's high rent prices and limited availability of suitable housing options.
There are still ways for expats to cope with the rising rent prices in Hong Kong. Some have recommended looking for accommodation in less central areas or sharing a flat with roommates. Others have suggested negotiating with landlords to try and secure a better deal.
Dubai
Dubai, with its year-round warm climate, luxury lifestyle, and tax-free income, has become a popular destination for expats from around the world. However, rising rent prices are making it increasingly difficult for expats to afford the high cost of living in the city. According to a report by real estate consultancy Cavendish Maxwell, rents for apartments in Dubai increased by 1.4% in 2020, despite the impact of the pandemic on the economy.
Expat testimonies reveal that finding affordable housing in Dubai can be a significant challenge. In an article by The National, one expat shared her experience of struggling to find a suitable apartment within her budget. She eventually had to compromise on certain amenities to secure a deal that fit her budget.
The rising rent prices in Dubai are not only impacting expats but also locals. According to a report by the Dubai Land Department, the average rent for apartments in the city increased by 2.1% in 2020. This trend is making it increasingly difficult for low-income families to find affordable housing in Dubai.
To cope with the rising rent prices, some expats have opted to look for accommodation in areas outside of the city center or house sharing with other families.
With no sign of the trend of rising prices slowing down, it is important for expats to be aware of the costs and plan accordingly.
London
As one of the world's most vibrant and cosmopolitan cities, London has long been a popular destination for expats. However, the city's soaring rent prices have made it increasingly challenging for many to find affordable housing, especially in central areas.
San Francisco
With its thriving tech industry and vibrant culture, San Francisco is a popular destination for expats from around the world. However, the city's high demand and limited housing supply have driven up rent prices to some of the highest levels in the United States.
Sydney
Australia's shortage of living accommodations has been an ongoing issue, particularly in major cities such as Sydney, Melbourne, and Brisbane. This shortage is due to a combination of factors, including population growth, urbanization, and lack of investment in affordable housing. The result is high demand for housing and rising rent prices, making it increasingly challenging for new arrivals to the country, expats, and locals to find suitable accommodation.
According to a report by the National Housing Finance and Investment Corporation, Australia is facing a shortfall of over 400,000 social and affordable homes. This shortage is putting pressure on the rental market, with rents in many areas of the country continuing to rise. As a result, many new arrivals to the country, expats, and locals are finding it difficult to find affordable housing, particularly in major cities.
In addition to the long-existing housing shortage, Australia in general and Sydney, in particular, have also experienced a hike in housing and rental prices — which further complicates the situation.
Expats in Australia have also spoken out about the challenges of finding suitable accommodation. In an article by the ABC, one expat shared her experience of struggling to find a rental property in Sydney, despite having a good job and references. She eventually had to settle for a small apartment in a less desirable area than she had hoped.
The shortage of living accommodations in Australia is impacting not only new arrivals and expats but also locals. According to a report by the Australian Housing and Urban Research Institute, housing affordability has declined significantly in Australia over the past two decades, with many low-income families struggling to find suitable housing.
Despite the challenges, there are still ways for new arrivals, expats, and locals to cope with the shortage of living accommodation in Australia. The recommendations for finding affordable accommodation remain standard: look for housing in areas outside of major cities or share a property with roommates.
Brussels
Brussels, the capital city of Belgium and the European Union, is home to a large expat community due to the many international organizations and institutions located there. However, the city is also facing rising rent prices that are making it increasingly difficult for new arrivals, expats, and locals to find affordable housing.
In 2022, the average rent in Brussels soared past 1,000 Euro per month. In addition to the rising rent prices, Brussels (like most other EU capitals) has also been affected by high electricity costs.
Expats in Brussels have been speaking out about the challenges of finding affordable housing in the city - and some even had to leave the housing they've been renting for years because of the rising costs.
The rising rent prices in Brussels are also impacting locals as well as Ukrainian refugees who are looking for affordable housing in the city. As of 2023, it is estimated that there are around 65,000 refugees from Ukraine living in Belgium.
Overall, the rising rent prices in Brussels are making it increasingly difficult for new arrivals, expats, and locals to find affordable housing in the city. Unfortunately, there are currently no signs that the rising prices will slow down — so it's important to plan your finances carefully when planning a move to the city.
These are just a few examples of the many cities where rising rent prices are impacting the expat community. As the trend continues, it is becoming increasingly difficult for expats to find affordable housing in some of the world's most popular destinations.
Are expats really leaving due to high rents?
It looks like a lot of expats are indeed leaving popular destinations due to high rent prices, which are making it increasingly challenging for them to afford to live in some of the world's most desirable cities. The trend has been reported in numerous cities, including Singapore, Hong Kong, Dubai, London, and Brussels. Moreover, rent prices in popular tourist destinations such as Thailand, Indonesia, and Turkey have also been on the rise.
Expat testimonies reveal that finding affordable housing in these cities can be a significant challenge. Many have shared their experiences on online forums, YouTube, and even TikTok — describing the high rent prices and limited availability of suitable housing options. Some have expressed frustration at the difficulty of finding affordable housing, which has led them to consider leaving their adopted homes. These expat testimonies highlight the real impact that rising rent prices are having on the expat community.
Tips on managing high rental prices for expats
While rent prices continue to rise, it's more important than ever for expats to carefully plan their budgets and make necessary adjustments to avoid financial difficulties. Summing up all the recommendations fellow expats in similar situations have shared, we have the following best practices for dealing with high rents:
Look for accommodation in less central areas: One of the most effective ways to save on rent is to look for accommodation outside the central business district. These areas are often more affordable and offer more space for the same price.
Negotiate with landlords: It's always worth negotiating with landlords to try and secure a better deal. Some landlords may be willing to offer a lower rent price in exchange for a longer lease term or other concessions.
Consider more affordable accommodation options: Co-living, house-sharing, and other alternative accommodation options can be more affordable than renting an entire apartment or house. These options often offer communal spaces and shared amenities, which can be a great way to save on living costs.
Research the local rental market: It's important to research the local rental market to have a realistic expectation of rental prices and to plan accordingly. This can help expats avoid getting taken advantage of by unscrupulous landlords and rental agents.
Overall, expats can cope with rising rents by being proactive and exploring different accommodation options. With a little creativity and some research, it's sometimes possible to find affordable housing in even the most expensive cities.
