Amsterdam homes are the least affordable in Europe, with buyers needing to pay 22 times the city’s residents’ average disposable income for a flat or house, according to research by Moody’s Investment Service.
In London, home buyers would need to find 18.5 times the average income, and in Paris 18 times, the research, which looked at 10 European cities, showed.
Amsterdam houses are not more expensive than in other European cities, but average disposable income is far below Paris and London, for example, pushing the Dutch capital into the top spot.
In Paris, the average disposable income was €36,300 last year, but in Amsterdam, it was just €17,500, Moody’s said.
Disposable income levels have failed to keep pace with the rise in house prices, Moody’s said. In 2012, at around the end of the financial crisis, Amsterdammers needed 14.5 times the city’s average income to buy somewhere to live.
Similar research published in February by real estate broker Knight Frank found house prices in Amsterdam have outstripped incomes faster than in any other global city in the last five years.
Knight Frank compared the trends in property prices and income for 32 cities around the world over the five-year period to September 2018. Homes in the Dutch capital grew in value by 63.6%, even though incomes rose by just 4.4%.
The average price paid for a home in Amsterdam was €423,000 last year.
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