Cost Of Living For a Single Person in Baranovichi 2025
Average Monthly Expenditure
Currency: BYN
Average monthly spending for a single person or individual in Baranovichi
How much money does an individual need in a month to survive in Baranovichi?
A single person in Baranovichi spends around 1,900 BYN per month on average. Depending on the lifestyle, a single individual can survive with a monthly budget as low as 260 BYN or as high as 12,000 BYN. Location and income are very important factors and have a huge influence on expenditure and budget.
How do individuals spend their money in Baranovichi?
We asked thousands of individuals about their spending habits and expenditure break down.
The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.
Housing and accomodation expenditure for individuals
Accomodation Cost30%
30% of total expenses on average (18% to 42%)
| LOW | $29 94 BYN |
| AVERAGE | $210 670 BYN |
| HIGH | $1,400 4,500 BYN |
| Per Month |
Individuals in Baranovichi typically spend from 18% to 42% of their total monthly expenditure on housing with 30% being the average. The average monthly spend on housing is 670 BYN with expenditure ranging from 94 BYN to 4,500 BYN. This cost mainly goes for rent but it also includes other accommodation-related expenses.
Electricity, utilities, energy, water, internet, and mobile expenditure for individuals
Cost of utilities8%
8% of total expenses on average (4% to 13%)
| LOW | $4.8 16 BYN |
| AVERAGE | $34 110 BYN |
| HIGH | $230 750 BYN |
| Per Month |
Utility expenditure like electricity, water, and gas in Baranovichi ranges from 4% to 13% of total expenses with 8% being the average for most individuals. The average monthly cost of utilities is 110 BYN with 16 BYN and 750 BYN being the upper and lower limits for a single person.
Transport, fuel, and commute expenditure for individuals
Cost of transport and fuel5%
5% of total expenses on average (3% to 11%)
| LOW | $6.4 21 BYN |
| AVERAGE | $46 150 BYN |
| HIGH | $300 990 BYN |
| Per Month |
Fuel consumption and cost of transport depend heavily on whether a single person resides near school and work, but roughly speaking a single person would expect to spend from 21 BYN to 990 BYN in a month on commuting with 150 BYN being the norm for most individuals. This means that money spent on transport constitutes about 5% of total spending on average but can go as low as 3% or as high as 11%.
Food, groceries, and basic shopping expenditure for individuals
Food and Groceries Cost19%
19% of total expenses on average (13% to 24%)
| LOW | $13 42 BYN |
| AVERAGE | $91 300 BYN |
| HIGH | $610 2,000 BYN |
| Per Month |
The average outlay on groceries and basic houshold items for a typical person in a month in Baranovichi is 300 BYN. The cost of groceries can range between 42 BYN to 2,000 BYN. Individuals spend on average about 19% on food and groceries with upper and lower bounds of 13% and 24% respectively.
Healthcare and medical services expenditure for individuals
Cost of healthcare12%
12% of total expenses on average (6% to 16%)
| LOW | $7.2 24 BYN |
| AVERAGE | $51 170 BYN |
| HIGH | $340 1,100 BYN |
| Per Month |
Individuals in Baranovichi allocate 6% to 16% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 12%. The range of medical expenses range from 24 BYN to 1,100 BYN with 170 BYN being the norm for most individuals.
Leisure and shopping expenditure for individuals
Cost of leisure and shopping3%
3% of total expenses on average (2% to 6%)
| LOW | $4 13 BYN |
| AVERAGE | $29 93 BYN |
| HIGH | $190 620 BYN |
| Per Month |
This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 13 BYN to 620 BYN with 93 BYN being the average. Speaking of percentages, that equates to 2% to 6% of total expenses with an average of 3% for most individuals.
Education and schooling expenditure for individuals
Cost of education and schooling1%
1% of total expenses on average (0.00% to 3%)
| LOW | $1.6 5.2 BYN |
| AVERAGE | $11 37 BYN |
| HIGH | $76 250 BYN |
| Per Month |
Spending on education can vary drastically between different individuals. On average, education constitutes 1% of the monthly expenditure of individuals with 0.00% and 3% being the lower and upper bounds respectively. The average reported education cost is 37 BYN per month with 5.2 BYN being the minimum spent amount and 250 BYN being the maximum.
Other Expenses22%
22% of total expenses on average (14% to 26%)
| LOW | $14 47 BYN |
| AVERAGE | $100 340 BYN |
| HIGH | $680 2,200 BYN |
| Per Month |
Prices and cost of goods and services in Baranovichi
Dining, food, and beverages costs
Fast food combo meal
Restaurant meal for one
Fine dining meal for one
Cappuccino or latte
Grocery and market costs
Milk large bottle
12 eggs
Fresh whole chicken
Pack of beef
Medium bag of rice
Bag of tomatos
| 0.59 BYN | 0.79 BYN | 1.5 BYN |
Bag of apples
Commute, travel, and transportation costs
20 minutes taxi ride
Average car full tank
Average car 1-day rental
Average car price
| 7,400 BYN | 15,000 BYN | 20,000 BYN |
Bus ticket one way
| 0.46 BYN | 0.69 BYN | 1.4 BYN |
Car Service
Utility cost (monthly)
Utility Bill - Individual
Internet and cable
Mobile phone charges
Leisure and activities costs
Movie ticket
One month gym membership
Cloths and accessories costs
Pair of jeans or pants
Woman dress
Woman shoes
Men's shoes
Men suit
Regular t-shirt
Housing costs / monthly rent
Studio apartment
1-bedroom apartment
| 340 BYN | 550 BYN | 1,400 BYN |
2-bedroom apartment
| 460 BYN | 690 BYN | 1,800 BYN |
Housing costs / Buying
Studio apartment
| 46,000 BYN | 69,000 BYN | 140,000 BYN |
1-bedroom apartment
| 55,000 BYN | 92,000 BYN | 340,000 BYN |
2-bedroom apartment
| 92,000 BYN | 280,000 BYN | 550,000 BYN |
Furniture Costs
King Size Bed
Double Bed
Single Bed
Living Room
| 330 BYN | 420 BYN | 1,500 BYN |
Dining Table
Sofa or Couch
Electronics and House Appliance Costs
TV Set
Fridge or Freezer
Washing Machine
Stove or Cooker
Mobile Phone
Laptop or Computer
Single person expenditure to income ratio in Baranovichi
Analysing the how affordable it is for an individual to live in Baranovichi
One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in. Individuals usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a single individual ranges between 70% to 80%.
Spending to Income Ratio
71%
64% to 78%
( expenditure / income ) x 100
Individuals in Baranovichi spend around 71% of their monthly income.
Some individuals spend as low as 64% of their income while some as high as 78%.
What percentage of individuals in Baranovichi are able to save money and how much can they save?
Percentage of individuals that reported their ability to save money
Almost 58% of surveyed individuals in Baranovichi said that they can save some money at the end of each month while 42% reported that they have to utilize their whole income to survive.
Savings-to-Income Ratio
The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.
How much money do individuals manage to add to their savings?
The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.
Saving to Income Ratio
Average Monthly Saved Amount
68 BYN
$21 | 610 BYN
$190 | 4,100 BYN
$1,300 |
Savings to income distribution levels for individuals
| Saving To Income Ratio | % Individuals |
|---|
| 0% - 10% | 32% |
| 10% - 20% | 25% |
| 20% - 30% | 16% |
| 30% - 40% | 13% |
| 40% - 50% | 10% |
| > 50% | 4% |
Interpretation and Analysis
Individuals that are able to save money can put anywhere from 14% to 32% of their monthly income to their savings, with 22% being the average for most individuals. The average monthly amount of money that individuals can put aside is 610 BYN with 68 BYN and 4,100 BYN being the minimum and maximum respectively.
Typical saving choices for individuals in Baranovichi
Where do people choose to put their savings?
| Saving Type | % People |
|---|
| Emergency Funds | 12% |
| Gold | 13% |
| Savings Accounts | 17% |
| Retirement Accounts | 10% |
| Cash Savings | 20% |
| Real Estate | 9% |
| Investment | 5% |
| Stocks | 4% |
| Bonds | 5% |
| Mutual Funds | 2% |
| Certificates of Deposit | 3% |
Saving Challenges in Baranovichi
Reasons that make it difficult for individuals to save money
We wanted to understand what is stopping people from maximizing their savings in Baranovichi. Listed below are the answers given by the survey participants.
| Reason | % People |
|---|
| Low Income | 5% |
| High Expenses | 8% |
| Debt and Loans | 14% |
| Lack of Budgeting Skills | 11% |
| Impulsive Spending | 11% |
| Financial Emergencies | 7% |
| Living the moment | 6% |
| Will do it later | 20% |
| Inflation | 13% |
| Social Pressure | 3% |
| Market Instability | 2% |
Around 5% of the individuals said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 14% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 11% of individuals blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 20% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 13% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.
A typical and healthy budgeting structure
The 50/30/20 rule
Spending among different people can vary significantly based on factors such as their income, lifestyle,
location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule,
which suggests allocating your income into three main categories in the following percentages.
50% for needs and financial obligations
This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.
30% for wants and discretionary spending
This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.
20% for savings and emergency fund
This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.
About financial planning, money management, and household budgeting
The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.
Affordable living in Baranovichi
Income and cost of living compatibility
We asked individuals one simple question and recorded their answers.
Is it affordable or economical to live in Baranovichi?
Around 55% of surveyed individuals think that living in Baranovichi is affordable with proper budgeting while 45% reported that it is just too expensive and not affordable even with frugality and thriftness.
Emergency Funds For Individuals
An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked individuals whether they have an emergency fund and the answers were as follows.
Yes55%
No45%
Based on the survey, 45% of the individuals living in Baranovichi said that they don't have an emergency fund while 55% said that they do.
Low-cost alternatives in Baranovichi
People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked individuals how easily cost-cutting is and the answers were distributed as follows:
Plenty of low-cost options55%
Few low-cost options45%
Based on the survey, 55% of the individuals living in Baranovichi have no problem finding low-cost alternatives to support a frugal lifestyle while 45% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.
Financial Literacy in
Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.
Financial Leteracy54%
We asked individuals in Baranovichi whether they acquired any adequate personal financial training in their lives. Approximately 46% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 54% said that they know about the general principles of personal finance from sources other than their own experience.
Difficulty in Budgeting and Financial Planning
We wanted to understand whether single people of have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 36% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 64% said that they have everything under control.
Struggles with finance36%
Easily manages finances64%
Financial goals of individuals in Baranovichi
In an attempt to understand the economic situation in Baranovichi, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.
| Financial Goal | % People |
|---|
| Emergency Fund | 8% |
| Debt Reduction | 42% |
| Retirement Savings | 10% |
| Education Funding | 7% |
| Homeownership | 18% |
| Investing | 7% |
| Travel or Lifestyle | 7% |
| Healthcare Expenses | 13% |
| Financial Independence | 5% |
Around 8% of individuals said that their main goal is to establish an emergency fund to cover unexpected expenses while 42% said their number one priority is to pay off high-interest debt or loans and improve credit. 10% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 7% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 7% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 13% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.
Debt, loans, and mortgages in Baranovichi
Percentage of individuals who are in debt
According to the survey, 23% of the individuals in Baranovichi have some kind of debt, loan, mortgage, or credit card payments while 77% reported that they don't have financial obligations to banks.
Debt-to-income ratio in Baranovichi
Debt to income ratio
27%
20% to 36%
( monthly debt payment / monthly income ) x 100
Interpretation
The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 27% of a single person's monthly income in Baranovichi goes to debt settlement.
Debt levelsMonthly debt settlement payment as percentage of monthly income
| Debt-to-income ratio | % People |
|---|
| > 60% | 3% |
| 50% - 60% | 17% |
| 40% - 50% | 14% |
| 30% - 40% | 16% |
| 20% - 30% | 11% |
| 10% - 20% | 13% |
| 0% - 10% | 26% |
According to our data, 3% of the debtors in Baranovichi pay 60%+ of their income as debt settlement while 17% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 14% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 16% dedicated 30% to 40% of income for same. Things are looking brighter for 11% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.
Distribution by type of debt in Baranovichi
| Debt | % People |
|---|
| Real Estate Mortgage | 9% |
| Auto Loan | 16% |
| Student Loan | 4% |
| Credit Card | 29% |
| Personal Loan | 42% |
9% of debtors in Baranovichi confirm that real estate mortgages constitutes the main part of their outstanding debt while 29% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 16% of people and personal loans rose at 42%. Lastly, student loans are the main source of debt for 4% of debtors in Baranovichi.
About credit score and debt managementManaging debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.
Good debt vs. Bad debt
Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.
Loan Affordability Index in Baranovichi
Besides measuring the loan-to-income ratio, we asked individuals how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.
Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.
| Frequency | % People |
|---|
| Never | 51% |
| Once a year | 24% |
| Twice a year | 12% |
| Three times a year | 9% |
| Four times a year | 4% |
Monthly costs and expenses of energy and basic utilities in Baranovichi
Utilities expenditure can vary slightly between different areas and locations.
Energy, electricity, water, gas, internet, and mobile cost in Baranovichi
Utility Bill Cost / Electricity + Water + Gas / A single person
Internet and cable cost
Mobile phone bill and charges
Because most utility bills club electricity, water, and gas costs in one bill, we can't provide a breakup for each type of utility and will display electricity, gas, and water as single cost.
The average monthly energy and water consumption of individuals is around 110 BYN. The cost of internet and WiFi ranges from 15 BYN to 39 BYN with 30 BYN being the average internet bill. Finally, the average monthly mobile charges is around 20 BYN but can range between 12 BYN and 59 BYN depending on consumption. Mobile charges include both calling minutes as well as data packages.
Energy / Utility expense to income ratio
( monthly utility expenses / monthly income ) x 100
The average utility-to-income ratio in Baranovichi is around 5.6%. This means that people pay 5.6% of their income for energy, water, internet, and mobile charges. Those figures can range from 2.8% to 9.4% depending on salary and location.
Food Prices, Dining Expenses, and Grocery Costs in Baranovichi
Grocery / Food expenditure and prices can vary drastically between different areas and locations.
Prices and cost of goods and services in Baranovichi
Dining out, food, and beverages costs. Price variations for common food items.
Fast food combo meal price
The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Baranovichi is approximatly 5.9 BYN with meal cost ranging from 3 BYN to 9.9 BYN. The typical combo meal consists of a burger, french fries, and a drink.
Restaurant meal for one price
If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 9.5 BYN and 29 BYN with 14 BYN being the average price of a plate for one person at a regular restaurant in Baranovichi.
Fine dining meal for one price
The price range of a meal at fine-dining restaurant is 19 BYN to 110 BYN with the average cost being 29 BYN for one person. This is what you would expect to pay a top-tier diner in Baranovichi.
Beverage prices, cappuccino, latte etc..
The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Baranovichi is around 3.9 BYN. Price ranges between 2.5 BYN and 5.9 BYN depending on the type of beverage, the size, and optional add-ons.
Grocery and market costs
Large bottle of milk price
The average price of a large bottle of milk in Baranovichi is 2.4 BYN. The maximum what you would pay for milk is 3 BYN and the minimum being 2 BYN depending on the brand of milk and other properties.
12 eggs price
A dozen eggs costs around 2 BYN on average with 1.5 BYN and 3 BYN being the lower and upper limits respectively.
Fresh whole chicken price
The price range of a fresh whole chicken in Baranovichi is between 3.4 BYN and 6.2 BYN depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 4.4 BYN.
Pack of beef price
The price of a regular pack of beef or meat is around 5.9 BYN. A pack of beef contains around 1Kg or 1lb depending on packing.
Medium bag of rice price
A bag of rice in Baranovichi costs around 2.2 BYN on average with prices rangeing between 1.6 BYN and 3.1 BYN depending on the brand and quality.
Bag of tomatos price
| 0.59 BYN | 0.79 BYN | 1.5 BYN |
A bag of tomatoes costs anywhere from 0.59 BYN to 1.5 BYN. A bag of tomatoes denotes 1Kg or 1lb depending on location.
Bag of apples price
A bag of apples costs 1.4 BYN on average. A bag of apples denotes 1Kg or 1lb depending on location.
Grocery and food expenditure to income ratio
( monthly grocery expenses / monthly income ) x 100
The average grocery-to-income ratio in Baranovichi is around 24%. This means that individuals spend 24% of their income on grocery and basic household items. The expenditure can range from 17% to 30% depending on salary and location.
Expenditure on food and grocery for individuals
Individuals' spending on grocery ranges from 42 BYN to 2,000 BYN with the location, income being the most determinite factors.
Housing costs, accommodation, and housing affordability in Baranovichi
Rental costs and house/apartment prices can vary drastically between different areas and locations.
Rent Cost in Baranovichi
Monthly Rent Prices
Studio apartment monthly rent cost
1-bedroom apartment monthly rent cost
| 340 BYN | 550 BYN | 1,400 BYN |
2-bedroom apartment monthly rent cost
| 460 BYN | 690 BYN | 1,800 BYN |
3-bedroom apartment monthly rent cost
| 550 BYN | 920 BYN | 2,500 BYN |
Furnished apartment monthly rent cost
| 1,100 BYN | 2,800 BYN | 5,500 BYN |
Townhouse monthly rent cost
| 920 BYN | 1,400 BYN | 3,900 BYN |
House monthly rent cost
| 1,100 BYN | 2,800 BYN | 5,500 BYN |
Villa monthly rent cost
| 1,400 BYN | 3,400 BYN | 5,500 BYN |
The monthly rental cost of a studio apartment in Baranovichi ranges between 230 BYN and 920 BYN, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 340 BYN to 1,400 BYN. Two-bedroom rentals rate ranges between 460 BYN and 1,800 BYN per month. The monthly rental for a three-bedroom apartment ranges from 550 BYN to 2,500 BYN. The average rent of a townhouse in Baranovichi is around 1,400 BYN while house rental costs can be as high as 2,800 BYN per month. Finally, if you want to rent a villa, expect to pay anywhere from 1,400 BYN to 5,500 BYN per month.
Apartment and house prices in Baranovichi
Cost of buying a property
Studio apartment price
| 46,000 BYN | 69,000 BYN | 140,000 BYN |
1-bedroom apartment price
| 55,000 BYN | 92,000 BYN | 340,000 BYN |
2-bedroom apartment price
| 92,000 BYN | 280,000 BYN | 550,000 BYN |
3-bedroom apartment price
| 310,000 BYN | 460,000 BYN | 1.4M BYN |
| $94,000 | $140,000 | $420,000 |
Townhouse price
| 390,000 BYN | 920,000 BYN | 3.4M BYN |
House price
| 460,000 BYN | 2.8M BYN | 3.9M BYN |
Villa price
| 550,000 BYN | 3.1M BYN | 4.6M BYN |
The average price of a studio apartment in Baranovichi can range from 46,000 BYN to 140,000 BYN depending on location. One bedroom cost can be anywhere from 55,000 BYN to 340,000 BYN. A villa can cost you 3.1M BYN on average with prices ranging from 550,000 BYN to 4.6M BYN.
If you're leasing or purchasing, housing costs in Baranovichi will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.
House / apartment prices to income ratio
Property price to income ratio
( average property price / average monthly income ) x 100
| 36 | x103 monthly income | 193 |
Property prices in Baranovichi can be x103 to x193 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x103 multiples of the average monthly salary in Baranovichi.
Rent to income ratio
Rent to income ratio
( monthly rental / monthly income ) x 100
The average rent-to-income ratio in Baranovichi is around 29%. This means that people pay 29% of their income for rent. Those figures can range from 20% to 38% depending on the salary, location, and type of property.
The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.
Housing affordability index
The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.
Housing Affordability Index
27% Property Taxes
Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.
Home Maintenance Costs
Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.
Urban vs. rural living costs
Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.
