New York, Mexico City and Hong Kong rank among the least affordable. 

A handful of midsized US cities and major Australian metro areas are among the most affordable places in the world to live, according to a new study.

Salt Lake City topped the ranking in a recent report by DWS Group, with Austin, Dallas and Atlanta also in the top 10. The firm analyzed 80 major metro areas across the Americas, Europe and the Asia Pacific region, finding that residents there spend an average of 38% of their post-tax income on rent for a two-bedroom apartment.

Rents have surged across the world’s big cities in the past several years, driven by inflation and high mortgage rates that have discouraged people from buying homes. While some Americans have sought cheaper lifestyles abroad, the US still offers some of the most affordable rents, said Simon Wallace, global co-head of real estate research at DWS.

Brisbane, Melbourne and Sydney all ranked in the top 10 as well, with residents there spending no more than 27% of their take-home income on rent. These cities have more balanced housing markets, in which income levels are high enough to comfortably cover rent and supply is less constrained, according to Wallace.

The worst cities for affordability included New York, London and Hong Kong, along with trendy spots like Mexico City and Lisbon.

In New York, where surging rents have left even high earners feeling squeezed, housing affordability is a central issue in the city’s upcoming mayoral election. From 2020 to 2024, rent in the New York City metro area soared by 27%, according to Zillow.