Rising Rental Costs Squeeze Renters in Global Cities

Renting in major cities like London and New York has become increasingly unaffordable, with average rents reaching all-time highs. In New York, the share of median household income eaten up by median rent rose from 35% to 37% in the past year, while in London, the average annual rise in rental costs exceeded 17%. The lack of rental supply, increased taxes on second homes, and limited investment in rental properties have contributed to the affordability crisis. Calls for rent control have been made, but experts argue that increasing the supply of homes and implementing policies to help people become homeowners are more effective solutions.