Rent Prices vs. Salaries: How Affordable Is Life in Modern Tbilisi?

In recent years, home ownership has become an increasingly distant dream for middle-income families in many global cities. In places like London, Los Angeles, Amsterdam, and Berlin, housing costs have been rising much faster than wages. For example, in Berlin, rents rose by more than 15% year-over-year in 2024 (Numbeo, IMF).

Similar patterns are becoming more visible in Georgia. According to Geostat, the average monthly salary in Georgia reached 1,900 GEL (approximately $700) in 2024. However, rental prices in Tbilisi have been growing at a much faster pace. According to Numbeo data from the second half of 2024, the average rent for a one-bedroom apartment in central Tbilisi ranged between 1,100 and 1,200 GEL ($400–450), while prices in premium districts climbed even higher.

Since 2022, the combination of migration triggered by the war and the global remote work boom has created strong demand in Georgia’s rental market. According to the National Bank of Georgia, more than 100,000 new residents from Russia, Belarus, and Ukraine arrived in the country by 2023. A significant portion of them settled in Tbilisi, creating additional pressure on the housing market.

At the same time, construction activity remains strong in certain areas of Tbilisi, but much of the new supply targets the premium segment. In 2024, about 70% of new building permits issued in Georgia were for projects in Tbilisi, but a large share of these units are purchased as investments or for short-term tourist rentals, not as permanent residences for locals (Geostat, Georgian Construction Association).

By global standards, when rent exceeds 30% of income, affordability concerns start to emerge. In Tbilisi, this threshold has already been crossed: for an average-income citizen, renting a one-bedroom apartment often consumes 40% to 50% of monthly earnings, placing a heavy financial burden on tenants.

For Georgia, this challenge is becoming as urgent as inflation or labor market issues. Government policy must focus on stabilizing the long-term rental market, encouraging affordable housing projects, and shifting some construction activity toward lower- and middle-income segments. Otherwise, Tbilisi risks joining the ranks of global cities where living costs consistently outpace wage growth, and the city gradually loses its ability to retain younger generations and middle-income residents.