Rents in the grand duchy’s capital are among the highest in a European survey, but average wages still make single-bedroom flats relatively affordable, The Economist has determined. Photo: Jared Lisack/Unsplash

Rents in the grand duchy’s capital are among the highest in a European survey, but average wages still make single-bedroom flats relatively affordable, The Economist has determined. Photo: Jared Lisack/Unsplash

Luxembourg City is more affordable for renters, based on average local wages, than for people working in Berlin and Paris, according to a well-known financial newspaper.

The grand duchy’s capital has the 4th highest “affordable one-bedroom wage” out of 35 European cities.

The salary required to rent a single-bedroom apartment was highest in Geneva, London and Dublin, The Economist earlier this month. Bucharest, Sofia and Ankara were at the other end of the scale.

The Economist based its rankings (which it calls a “Bradshaw score”) on data from Eurostat, ERI Economic Research Institute and its own calculations. The tables compared average annual wages--based on workplace location, not residence--with a ceiling of 30% of a renter’s pre-tax earnings.

Average wages in Luxembourg City were $3,847 higher than the affordable rent wage of $80,024, making the capital the ninth most affordable location in the index. Bonn, Bern and Karlsruhe had the best ratio for renters, while Budapest, Prague and Lisbon were the most unaffordable.

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