City dwellers around the world are paying $650bn more than they can afford in housing costs each year, according to research by McKinsey.
London, New York and Tokyo are among the worst affected. McKinsey arrived at the figure after weighing what proportion of household income was accounted for by housing costs. Around the world, it found, 330m people are cutting back spending to meet housing costs. That figure will rise to 440m by 2025, it said, unless governments do more to build and subsidise housing.
Financial Times, 8, 14
