Economy Watch: Two U.S. Markets House Most Expensive Apartments Worldwide

In which two U.S. cities are renters paying top dollar for their living spaces?

forrent-300x225Two U.S. apartment markets are the most expensive in the world for apartment dwellers, even more so than traditionally high-rent markets such as Hong Kong, Singapore and Geneva, according to a new report by U.K.-based online realtor Nested.

That was the case for San Francisco—No. 1 most expensive apartment market per square foot in the world—and No. 2, New York. In those markets, rents average $4.95 and $4.75 per square foot, respectively, edging out Hong Kong, Dubai and Singapore. Washington D.C. was No. 6 on the list, ahead of Geneva, Zurich and Sydney. L.A. came in No. 10.

To afford such lofty rents, a single person would need an income of nearly $86,000 a year in San Francisco and $82,500 in New York (assuming at least 420 square feet for that person). A family of four would need a household income of more than $163,000 in San Francisco and $156,000 in New York (assuming just short of 800 square feet.)

Nested calculated the price per square foot of property based upon current market listings for all locations researched for the report. The company specializes in residential property sales, using algorithms to provide sellers with a property valuation quickly.