How renting apartments in Lviv, Kyiv and Uzhgorod affects the financial situation of Ukrainians: an analysis of housing costs

In Ukraine, renting housing in many cities significantly exceeds the ability of many residents to provide themselves with housing, even taking into account the average salary level. According to the analytical project LUN and Work.ua, the cost of renting apartments in the country's large cities is a significant burden on the budget of most citizens. In this context, comparing the cost of renting and the average salary shows that in some cities in Ukraine, renting housing can exceed all available income.

In Kyiv, for example, renting a two-room apartment is 100% of the average salary, and a three-room apartment is already 166%. This means that residents of the capital will have to spend their entire salary to rent even an average two-room apartment. The cost of renting a one-room apartment in Kyiv is 68% of the average salary, which is already a significant financial burden for most families.

However, the situation in other cities is somewhat different. In Lviv, a one-room apartment will cost 80% of the average salary, which is lower than in Kyiv. Uzhhorod also has more affordable housing rental prices, but even here, renting a one-room apartment takes 87% of the average salary. Although prices in these cities are much lower, they can still be a significant burden for local residents.

Even more impressive are the figures for two-room and three-room apartments. In Kyiv, the rent for a two-room apartment is equal to the average salary, and for a three-room apartment - it exceeds it by 66%. A similar situation is observed in other cities, such as Uzhhorod, where renting a two-room apartment takes 116% of the average salary, and in Odessa, a three-room apartment will also cost 100% of the salary.

The data of this study indicate serious challenges to housing affordability in Ukraine, especially in conditions of war and economic difficulties. In Kharkiv, where rents have remained low since February 2022 due to constant shelling, the rental market remains somewhat more affordable. This may be one of the reasons why some residents of the city do not leave for safer regions.

Meanwhile, in cities in western Ukraine, such as Uzhhorod, demand for rental housing is increasing due to relative safety compared to other regions. This leads to higher rental prices, which is becoming a problem for local residents, as housing costs can take up a significant part of their income.

The optimal ratio of rent to wages is 30% of total monthly income, which is a generally accepted standard in high-income countries such as Germany or France. There, rent is about 25-30% of income, which provides a more balanced situation for the population. In Ukraine, such costs significantly exceed the recommended limits, especially in cities where rents are growing faster than wages.

In general, the problem of high rental costs in Ukraine is typical for many European countries, where, in particular, various methods of regulating rental prices and supporting social housing are used. In Ukraine, to solve this problem, state initiatives are needed aimed at increasing the accessibility of housing for the general population.