São Paulo is a great city. It has museums, parks, street art, nice views, diversity; everything you can imagine. But as you can imagine, “low-cost” is not a quality of the biggest metropolis in South America.
Like in the picture above, wherever you look in São Paulo the inequality is clear. So I gathered some data and decided to look a little more deep into the apartment prices in the city.
Personally, I don’t think buying a place is a good idea. If you’re gonna pay for something your entire life, at least pay for something you can change whenever you want or need.
Both graphics have 94 different districts in the horizontal axis; the first graphic has the average rent price for each district on it’s vertical axis, and the second has the average selling price.
With a few exceptions, we can see that the pattern doesn’t really change. The apartment prices will be high where the rent prices are high, and vice-versa. But why?
I mean, why some places cost 10 times the price of other places. Is it the name, the location, the view?
Thinking about it, I tried to show on a map exactly where are the apartments located depending on it’s rent price.
In green, you can see every apartment which price is below $1000 (there are only 343).
In red, the top 1000 higher prices.
The size of the dots are equivalent to the apartment size; the average “red apartments” size is 100m², while the green ones are half of it.
Ok, that helps. It’s like São Paulo caught a disease on it’s center and the green dots aren’t going anywhere near it.
By the size of the apartments, we can have an idea of why the prices are so high. Still doesn’t fully explain why the lowest red apartment price is 5 times higher then the highest green.
There is also a phenomenon called Real Estate Speculation; it happens when rich people purchase real estate with the hope that it will become more valuable in the near future. That forces poor people to move away from the center, looking for cheaper places to live.