(ECNS) -- Over 70 percent of 50 cities monitored had high rent-to-income ratios in June, according to a just-released report, with residents of Beijing, Shenzhen, Sanya and Shanghai spending more than 45 percent of their disposable personal income on rent.
Shanghai-based E-house China Research and Development Institute said in the report that Beijing took the lead with an average monthly rent of 2,748 yuan (6) at a ratio of 58 percent.
The southern manufacturing hub of Shenzhen, southern tourist destination of Sanya and eastern metropolis Shanghai followed with ratios of 54 percent, 48 percent and 48 percent respectively.
The report shows only 12 out of the 50 cities studied have reasonable rent-to-income ratios, usually under 25 percent. In the eastern cities of Wuxi, Jiaxing and Suzhou, tenants needed to spend 19 percent, 20 percent and 21 percent of their disposable income for rent.
A total of 34 cities were found to have rent-to-income ratios between 25 and 45 percent, including Guangzhou, Hangzhou and Tianjin.
Wang Mengwen, an analyst with the institute, said rental housing demand is still very high in large cities and integration of market forces and government subsidies is needed to ensure the sound development of this sector.