According to Numbeo, Ghana’s capital city, Accra, is the world’s second most expensive city in terms of property price to income ratio.
The Price to Income Ratio is the basic indicator for apartment purchase affordability, according to Numbeo, a crowd-sourced global database of reported consumer prices, perceived crime rates, quality of health care, and other statistics.
According to the website, “it is commonly calculated as the ratio of median apartment prices to median familial disposable income, expressed as years of income.”
Accra outperforms Hong Kong, Shenzhen, Moscow, Paris, and a slew of other world-class cities.
Memphis is the cheapest city in the United States of America in terms of property price to income ratio.
Accra has the highest mortgage Percentage income ratio in the world, according to Numbeo, followed by Buenos Aires (Argentina) and Tehran (Iran) in second and third place, respectively.
Mortgage as a Percentage of Income is a ratio of the mortgage’s actual monthly cost to the family’s take-home pay.
“Family income is estimated using an average monthly pay. It is assumed that a 100 percent mortgage is taken out over 20 years for a 90-square-meter house (or apartment), with the price per square meter being the average in the city center and outside of the city center,” according to the website.
Meanwhile, Accra has the world’s lowest loan affordability.
The site said that the “Loan Affordability Index” is the inverse of the mortgage as a proportion of income.
This means that obtaining a loan in Accra is more expensive than in other cities such as Lagos (Nigeria), Kabul (Afghanistan), Sao Paolo (Brazil), and Stockholm (Sweden), among others.
Numbeo is a global database of reported consumer prices, perceived crime rates, health-care quality, and other statistics compiled by the public.
It gathered data from 482 cities throughout the world this year.