Why is renting in first-tier cities so expensive?

Why do you think the rent is expensive? Borrow a classic joke from the internet: it's not easy, because it's poor! This direct and heartfelt sentence actually tells the truth in one sentence. Recently, Shanghai Yiju Real Estate Research Institute released the report "Study on Rent-to-Income Ratio of 50 Cities in China", and analyzed these 50 cities from the perspective of rent-to-income ratio through the first batch of 12 pilot cities in the rental market and 38 other sample cities with permanent population larger than registered population.

According to the report of Yiju Research Institute, among 50 key cities such as Beijing, Shanghai, Tianjin, Chongqing, Shenzhen, Guangzhou, Hangzhou, Nanjing, Wuhan and Chengdu, from 2065438 to June 2007, the per capita housing rent in three cities was higher than 2000 yuan/month, namely Beijing, Shanghai and Shenzhen. In other words, if three people share a house with three bedrooms and one living room in these cities, it will cost at least 6,000 yuan, and in Beijing, the figure is more than 8,000 yuan. Among them, the highest price in Beijing is 2748 yuan/month, which is more than 500 yuan more expensive than the second place in Shanghai.

Of course, we don't have a clear feeling about this intuitive figure. We might as well do a calculation and adopt the most commonly used calculation method in real estate economics. We divide the per capita rent of a city by the per capita disposable income of the city where it is located, and we can get the so-called rent-income ratio. Among the 50 cities, Beijing (58%), Shenzhen (54%), Sanya (48%), Shanghai (48%) and other four cities have rental income. Among them, Sanya, as a tourist city, cannot be generalized and needs to be excluded. Then, obviously, the three first-tier cities we often talk about, namely, the north, Guangzhou and Shenzhen, are the cities with high rents.