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Where People Borrow Money From, by Country Income Level

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When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?

On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy, and the cultural approach to the very concept of lending itself.

In these graphics, Richie Lionell sheds some light on where people borrow money from, using the 2021 Global Findex Database published by the World Bank.

Borrowing From Financial Institutions

To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region except for high-income countries, which are grouped together.

borrow money from financial institutions

In 2021, most individuals in high income economies borrowed money from formal financial institutions.

CountryRegionBorrowed from a financial institution
CanadaHigh income81.01%
IsraelHigh income79.52%
IcelandHigh income73.36%
Hong Kong SAR, ChinaHigh income70.01%
Korea, Rep.High income68.64%
NorwayHigh income66.82%
United StatesHigh income66.21%
Taiwan, ChinaHigh income61.95%
SwitzerlandHigh income61.40%
JapanHigh income61.19%
New ZealandHigh income60.38%
AustraliaHigh income57.29%
AustriaHigh income56.52%
ItalyHigh income55.01%
United KingdomHigh income54.98%
GermanyHigh income54.68%
IrelandHigh income54.11%
DenmarkHigh income53.16%
FinlandHigh income52.98%
SpainHigh income51.92%
SwedenHigh income48.69%
BelgiumHigh income47.98%
FranceHigh income44.37%
SingaporeHigh income42.82%
SloveniaHigh income42.36%
UruguayHigh income42.01%
BrazilLatin America & Caribbean (excluding high income)40.75%
ChinaEast Asia & Pacific (excluding high income)39.19%
MaltaHigh income38.95%
TürkiyeEurope & Central Asia (excluding high income)37.84%
NetherlandsHigh income34.45%
Slovak RepublicHigh income34.41%
MongoliaEast Asia & Pacific (excluding high income)34.39%
UkraineEurope & Central Asia (excluding high income)34.13%
EstoniaHigh income33.64%
CroatiaHigh income33.03%
Saudi ArabiaHigh income32.38%
PolandHigh income31.92%
Czech RepublicHigh income31.33%
CyprusHigh income31.25%
CambodiaEast Asia & Pacific (excluding high income)30.89%
ArgentinaLatin America & Caribbean (excluding high income)30.81%
PortugalHigh income30.44%
KazakhstanEurope & Central Asia (excluding high income)29.76%
Russian FederationEurope & Central Asia (excluding high income)29.75%
ThailandEast Asia & Pacific (excluding high income)28.26%
BulgariaEurope & Central Asia (excluding high income)26.36%
ArmeniaEurope & Central Asia (excluding high income)26.17%
Iran, Islamic Rep.Middle East & North Africa (excluding high income)25.11%
ChileHigh income24.20%
GeorgiaEurope & Central Asia (excluding high income)23.89%
EcuadorLatin America & Caribbean (excluding high income)23.23%
LatviaHigh income22.74%
United Arab EmiratesHigh income22.46%
KenyaSub-Saharan Africa (excluding high income)22.18%
North MacedoniaEurope & Central Asia (excluding high income)22.10%
PeruLatin America & Caribbean (excluding high income)21.95%
Dominican RepublicLatin America & Caribbean (excluding high income)21.65%
Bosnia and HerzegovinaEurope & Central Asia (excluding high income)21.30%
Sri LankaSouth Asia21.29%
NamibiaSub-Saharan Africa (excluding high income)20.97%
SerbiaEurope & Central Asia (excluding high income)20.65%
GreeceHigh income20.11%
MauritiusSub-Saharan Africa (excluding high income)20.09%
BoliviaLatin America & Caribbean (excluding high income)19.30%
RomaniaEurope & Central Asia (excluding high income)19.14%
HungaryHigh income18.93%
UgandaSub-Saharan Africa (excluding high income)18.62%
South AfricaSub-Saharan Africa (excluding high income)18.22%
ColombiaLatin America & Caribbean (excluding high income)18.10%
Kyrgyz RepublicEurope & Central Asia (excluding high income)17.73%
KosovoEurope & Central Asia (excluding high income)17.61%
Costa RicaLatin America & Caribbean (excluding high income)17.46%
PhilippinesEast Asia & Pacific (excluding high income)17.45%
LiberiaSub-Saharan Africa (excluding high income)15.42%
BangladeshSouth Asia14.22%
NepalSouth Asia14.11%
MalaysiaEast Asia & Pacific (excluding high income)13.48%
AlbaniaEurope & Central Asia (excluding high income)13.39%
MoldovaEurope & Central Asia (excluding high income)13.18%
IndonesiaEast Asia & Pacific (excluding high income)12.86%
TajikistanEurope & Central Asia (excluding high income)12.43%
ParaguayLatin America & Caribbean (excluding high income)12.39%
NicaraguaLatin America & Caribbean (excluding high income)12.19%
JamaicaLatin America & Caribbean (excluding high income)12.04%
LithuaniaHigh income11.95%
IndiaSouth Asia11.79%
MaliSub-Saharan Africa (excluding high income)10.99%
El SalvadorLatin America & Caribbean (excluding high income)10.56%
PanamaLatin America & Caribbean (excluding high income)10.39%
HondurasLatin America & Caribbean (excluding high income)10.32%
MozambiqueSub-Saharan Africa (excluding high income)10.27%
SenegalSub-Saharan Africa (excluding high income)9.98%
TunisiaMiddle East & North Africa (excluding high income)9.89%
JordanMiddle East & North Africa (excluding high income)9.86%
Lao PDREast Asia & Pacific (excluding high income)9.15%
Venezuela, RBLatin America & Caribbean (excluding high income)8.83%
BeninSub-Saharan Africa (excluding high income)8.21%
MalawiSub-Saharan Africa (excluding high income)7.99%
UzbekistanEurope & Central Asia (excluding high income)7.50%
TogoSub-Saharan Africa (excluding high income)7.42%
GhanaSub-Saharan Africa (excluding high income)7.40%
Egypt, Arab Rep.Middle East & North Africa (excluding high income)7.30%
MyanmarEast Asia & Pacific (excluding high income)7.06%
CameroonSub-Saharan Africa (excluding high income)6.99%
ZambiaSub-Saharan Africa (excluding high income)6.76%
Burkina FasoSub-Saharan Africa (excluding high income)6.66%
NigeriaSub-Saharan Africa (excluding high income)6.40%
Congo, Rep.Sub-Saharan Africa (excluding high income)6.19%
GuineaSub-Saharan Africa (excluding high income)6.11%
GabonSub-Saharan Africa (excluding high income)5.48%
MoroccoMiddle East & North Africa (excluding high income)4.99%
West Bank and GazaMiddle East & North Africa (excluding high income)4.94%
TanzaniaSub-Saharan Africa (excluding high income)4.45%
Sierra LeoneSub-Saharan Africa (excluding high income)4.29%
Cote d'IvoireSub-Saharan Africa (excluding high income)4.10%
AlgeriaMiddle East & North Africa (excluding high income)3.80%
IraqMiddle East & North Africa (excluding high income)3.64%
PakistanSouth Asia3.51%
LebanonMiddle East & North Africa (excluding high income)3.31%
ZimbabweSub-Saharan Africa (excluding high income)2.89%
South SudanSub-Saharan Africa (excluding high income)2.48%
AfghanistanSouth Asia2.05%

With 81% of respondents borrowing from financial institutions, Canada tops this list. Meanwhile, Israel (80%), Iceland (73%), Hong Kong (70%), and South Korea (69%) are not far behind.

This is not surprising for richer nations, as financial services in these countries are more available and accessible. This, coupled with higher financial literacy, including a general understanding of interest rates and credit-building opportunities, contribute to the popularity of financial institutions.

Also, it’s worth noting that some countries have cultural practices that factor in. For example, 61% of respondents in Japan used formal financial institutions, which are a more socially acceptable option than asking to borrow money from friends and family (just 6% of people in Japan).

Borrowing from Friends and Family

In contrast, more individuals in lower income economies approached family and friends in order to borrow money.

Countries leading in borrowing money from family and friends

Afghanistan tops this list with 60% of respondents relying on friends and family, compared to only 2% borrowing money from formal financial institutions.

CountryRegionBorrowed from family or friends
AfghanistanSouth Asia60.18%
UgandaSub-Saharan Africa (excluding high income)57.45%
KenyaSub-Saharan Africa (excluding high income)54.40%
NamibiaSub-Saharan Africa (excluding high income)50.25%
MoroccoMiddle East & North Africa (excluding high income)48.73%
NigeriaSub-Saharan Africa (excluding high income)44.71%
South AfricaSub-Saharan Africa (excluding high income)44.54%
IraqMiddle East & North Africa (excluding high income)44.10%
CameroonSub-Saharan Africa (excluding high income)43.49%
ZambiaSub-Saharan Africa (excluding high income)43.08%
ZimbabweSub-Saharan Africa (excluding high income)42.34%
GuineaSub-Saharan Africa (excluding high income)42.04%
NepalSouth Asia41.79%
JordanMiddle East & North Africa (excluding high income)41.76%
GabonSub-Saharan Africa (excluding high income)41.41%
LiberiaSub-Saharan Africa (excluding high income)41.37%
TunisiaMiddle East & North Africa (excluding high income)41.05%
PhilippinesEast Asia & Pacific (excluding high income)40.82%
TürkiyeEurope & Central Asia (excluding high income)40.80%
Iran, Islamic Rep.Middle East & North Africa (excluding high income)39.80%
Sierra LeoneSub-Saharan Africa (excluding high income)39.02%
GhanaSub-Saharan Africa (excluding high income)38.58%
Egypt, Arab Rep.Middle East & North Africa (excluding high income)37.75%
Saudi ArabiaHigh income35.76%
BangladeshSouth Asia35.49%
MaliSub-Saharan Africa (excluding high income)35.15%
Burkina FasoSub-Saharan Africa (excluding high income)35.14%
CambodiaEast Asia & Pacific (excluding high income)34.85%
Venezuela, RBLatin America & Caribbean (excluding high income)34.81%
TogoSub-Saharan Africa (excluding high income)33.99%
West Bank and GazaMiddle East & North Africa (excluding high income)33.93%
ThailandEast Asia & Pacific (excluding high income)32.83%
Lao PDREast Asia & Pacific (excluding high income)32.36%
MoldovaEurope & Central Asia (excluding high income)32.18%
UkraineEurope & Central Asia (excluding high income)32.17%
SenegalSub-Saharan Africa (excluding high income)31.30%
ArmeniaEurope & Central Asia (excluding high income)31.29%
IndiaSouth Asia31.02%
BoliviaLatin America & Caribbean (excluding high income)30.69%
AlgeriaMiddle East & North Africa (excluding high income)30.52%
Cote d'IvoireSub-Saharan Africa (excluding high income)30.20%
AlbaniaEurope & Central Asia (excluding high income)30.00%
BulgariaEurope & Central Asia (excluding high income)29.99%
BeninSub-Saharan Africa (excluding high income)29.33%
MozambiqueSub-Saharan Africa (excluding high income)29.33%
TanzaniaSub-Saharan Africa (excluding high income)29.24%
ColombiaLatin America & Caribbean (excluding high income)29.08%
IndonesiaEast Asia & Pacific (excluding high income)28.85%
South SudanSub-Saharan Africa (excluding high income)28.84%
EcuadorLatin America & Caribbean (excluding high income)28.79%
SerbiaEurope & Central Asia (excluding high income)28.49%
Russian FederationEurope & Central Asia (excluding high income)28.40%
MongoliaEast Asia & Pacific (excluding high income)27.01%
Kyrgyz RepublicEurope & Central Asia (excluding high income)27.01%
ChinaEast Asia & Pacific (excluding high income)26.43%
HondurasLatin America & Caribbean (excluding high income)26.07%
GreeceHigh income25.94%
KosovoEurope & Central Asia (excluding high income)25.86%
ArgentinaLatin America & Caribbean (excluding high income)25.72%
KazakhstanEurope & Central Asia (excluding high income)25.64%
RomaniaEurope & Central Asia (excluding high income)25.58%
MalawiSub-Saharan Africa (excluding high income)25.24%
North MacedoniaEurope & Central Asia (excluding high income)25.14%
Dominican RepublicLatin America & Caribbean (excluding high income)24.70%
BrazilLatin America & Caribbean (excluding high income)24.66%
Congo, Rep.Sub-Saharan Africa (excluding high income)24.40%
LebanonMiddle East & North Africa (excluding high income)24.26%
NicaraguaLatin America & Caribbean (excluding high income)23.75%
IcelandHigh income23.63%
PeruLatin America & Caribbean (excluding high income)23.34%
United Arab EmiratesHigh income23.04%
MyanmarEast Asia & Pacific (excluding high income)23.03%
Sri LankaSouth Asia22.53%
ParaguayLatin America & Caribbean (excluding high income)22.20%
PakistanSouth Asia21.87%
UzbekistanEurope & Central Asia (excluding high income)21.53%
CyprusHigh income20.95%
Bosnia and HerzegovinaEurope & Central Asia (excluding high income)20.94%
ChileHigh income20.72%
GeorgiaEurope & Central Asia (excluding high income)20.61%
MauritiusSub-Saharan Africa (excluding high income)20.48%
Costa RicaLatin America & Caribbean (excluding high income)20.29%
JamaicaLatin America & Caribbean (excluding high income)20.02%
TajikistanEurope & Central Asia (excluding high income)19.86%
PolandHigh income19.34%
NorwayHigh income19.29%
United StatesHigh income18.09%
UruguayHigh income17.60%
PanamaLatin America & Caribbean (excluding high income)17.54%
DenmarkHigh income17.51%
CroatiaHigh income17.09%
El SalvadorLatin America & Caribbean (excluding high income)16.78%
SloveniaHigh income16.77%
LatviaHigh income16.57%
AustraliaHigh income16.44%
EstoniaHigh income15.74%
MalaysiaEast Asia & Pacific (excluding high income)15.44%
IsraelHigh income15.43%
New ZealandHigh income15.19%
Slovak RepublicHigh income15.02%
GermanyHigh income15.01%
AustriaHigh income14.41%
CanadaHigh income14.00%
FinlandHigh income13.43%
Czech RepublicHigh income13.41%
Korea, Rep.High income13.16%
MaltaHigh income12.99%
BelgiumHigh income12.13%
SwedenHigh income11.79%
HungaryHigh income11.15%
LithuaniaHigh income10.65%
SpainHigh income10.44%
FranceHigh income10.42%
NetherlandsHigh income10.24%
IrelandHigh income9.84%
Taiwan, ChinaHigh income9.70%
PortugalHigh income8.22%
Hong Kong SAR, ChinaHigh income7.59%
JapanHigh income6.43%
SwitzerlandHigh income6.10%
United KingdomHigh income5.24%
ItalyHigh income5.06%
SingaporeHigh income1.89%

Many individuals in African countries including Uganda (57%), Kenya (54%), Namibia (50%), and Morocco (49%) also are choosing to borrow money from friends and family over financial institutions.

These preferences can be attributed to various factors including a lack of trust in banking and financial institutions, lacking access to such services, or the lack of information about such services if they are available.

And in some societies, borrowing from friends and family can be seen as a cultural norm, especially in places where mutual support and solidarity play a strong role.

What’s Next?

As viewed by the World Bank, financial inclusion is an important foundation of any nation’s development, and it’s also one of the UN’s Sustainable Development Goals. Increasing levels of financial inclusion helps give people access to services like savings plans, credit avenues, and online payments and transactions.

And thanks to commitments from countries and financial systems, global ownership of banking accounts has increased significantly (and been further spurred by the COVID-19 pandemic). According to the Global Findex Database, bank account ownership has risen to 76% in 2021, up from just 51% a decade prior.

However, access to these services is still rife with gaps when it comes to low income nations, low income individuals, and unequal access based on gender. The future of borrowing now relies on how nations deal with these challenges.

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This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

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Personal Finance

Mapped: What You Need to Earn to Own a Home in 50 American Cities

What does it take to own a home in the U.S. in 2023? Here’s a look at the salary needed for home ownership in the top 50 metro areas.

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A cropped map of the U.S. with the median home price as well as the salary needed to own a home 50 American cities.

What You Need to Earn to Own a Home in 50 American Cities

Once a fundamental part of the American dream, the ability to own a home is drifting farther and farther away for many Americans.

Between skyrocketing prices, stagnating wages, and now rising interest rates, the deck seems to be increasingly stacked against home ownership.

Using May 2023 data tabulated by Home Sweet Home, we map out the annual salary needed to afford a 30-year mortgage (at 6.37%) to buy a home in America’s 50 most populous metropolitan areas.

The monthly minimum mortgage payment includes taxes and insurance as well, and is capped at roughly one-third of the income. This analysis also assumes that the homeowner will put down a 20% down payment.

The Least and Most Affordable American Cities to Own a Home

At the top of the list, and at the very west of the country, San Jose is the least affordable city to own a home for the average American.

One would have to earn at least $374,000 a year to afford a $1.6 million dollar home in the city.

To put those numbers into perspective, the median American annual income is $75,000, about one-fifth what’s required to buy a home in San Jose.

Here’s a look at the annual earnings needed to afford a home in all 50 largest cities in the U.S., ranked from least to most affordable.

RankMetro AreaStateMedian Home PriceAnnual Salary
1San JoseCalifornia$1,618,400$373,696
2San FranciscoCalifornia$1,192,600$282,167
3San DiegoCalifornia$880,000$209,110
4Los AngelesCalifornia$746,800$181,106
5SeattleWashington$699,300$170,340
6BostonMassachusetts$644,400$165,239
7New York CityNew York$577,300$160,233
8DenverColorado$636,100$150,622
9Washington, D.C.N/A$557,200$139,911
10MiamiFlorida$560,000$137,574
11PortlandOregon$556,800$136,147
12Riverside/San
Bernardino
California$550,000$133,607
13AustinTexas$467,900$128,995
14SacramentoCalifornia$500,000$125,304
15Salt Lake CityUtah$522,700$122,717
16ProvidenceRhode Island$417,000$112,281
17OrlandoFlorida$419,900$104,772
18DallasTexas$372,400$103,460
19PhoenixArizona$439,700$103,112
20RaleighNorth Carolina$420,000$102,572
21Las VegasNevada$431,400$101,310
22TampaFlorida$390,000$97,387
23MinneapolisMichigan$361,500$94,466
24HartfordConnecticut$314,900$93,861
25CharlotteNorth Carolina$387,200$93,735
26JacksonvilleFlorida$370,000$93,422
27BaltimoreMaryland$357,800$93,378
28NashvilleTennessee$385,800$93,168
29ChicagoIllinois$321,000$92,868
30HoustonTexas$327,000$91,826
31MilwaukeeWisconsin$339,600$89,752
32AtlantaGeorgia$354,300$89,198
33RichmondVirginia$362,300$88,769
34San AntonioTexas$320,500$88,683
35PhiladelphiaPennsylvania$315,300$87,293
36Virginia BeachVirginia$313,200$79,336
37Kansas CityMissouri$291,000$76,147
38ColumbusOhio$284,700$76,133
39IndianapolisIndiana$289,300$71,409
40New OrleansLouisiana$265,200$68,946
41MemphisTennessee$268,600$68,005
42BirminghamAlabama$276,500$67,773
43CincinnatiOhio$252,200$66,260
44BuffaloNew York$206,800$63,386
45St LouisMissouri$231,100$63,260
46DetroitMichigan$227,000$62,758
47LouisvilleKentucky$246,000$62,741
48Oklahoma CityOklahoma$227,300$62,161
49ClevelandOhio$191,400$55,515
50PittsburghPennsylvania$175,000$50,316
National$371,200$97,204

Other Californian cities, San Francisco (ranked 2nd), San Diego (3rd), and Los Angeles (4th) all require an annual income of at least $180,000 to attempt home ownership within their metropolitan boundaries.

Boston (ranked 6th) and New York (ranked 7th) represent unaffordability on the East Coast, both requiring at least $160,000 a year to buy homes there.

It’s not just the coasts that are expensive however. To buy a home in Denver (ranked 8th) and Salt Lake City (15th) means earning more than $120,000 a year.

However, cities in the Midwest and South, like Pittsburgh, Detroit, Oklahoma City, and Louisville, are far more affordable, requiring less than $63,000 a year to buy a home.

Interest Rates Rock Home Ownership Chances

Aside from the obvious price differences in housing markets, a key factor that has elevated income requirements across the board is the rapid rise in interest rates in the last year. In fact the average 30-year mortgage has pushed past 7%, the highest it’s been since the 2000s.

This means that while the median price of a house in San Jose has actually come down between 2022 and 2023, the minimum monthly payment has increased from $7,717 to $8,720 this year.

RankMetro AreaStateMedian Home PriceMonthly Payment
1San JoseCalifornia$1,618,400$8,720
2San FranciscoCalifornia$1,192,600$6,584
3San DiegoCalifornia$880,000$4,879
4Los AngelesCalifornia$746,800$4,226
5SeattleWashington$699,300$3,975
6BostonMassachusetts$644,400$3,856
7New York CityNew York$577,300$3,739
8DenverColorado$636,100$3,515
9Washington, D.C.N/A$557,200$3,265
10MiamiFlorida$560,000$3,210
11PortlandOregon$556,800$3,177
12Riverside/San
Bernardino
California$550,000$3,118
13AustinTexas$467,900$3,010
14SacramentoCalifornia$500,000$2,924
15Salt Lake CityUtah$522,700$2,863
16ProvidenceRhode Island$417,000$2,620
17OrlandoFlorida$419,900$2,445
18DallasTexas$372,400$2,414
19PhoenixArizona$439,700$2,406
20RaleighNorth Carolina$420,000$2,393
21Las VegasNevada$431,400$2,364
22TampaFlorida$390,000$2,272
23MinneapolisMichigan$361,500$2,204
24HartfordConnecticut$314,900$2,190
25CharlotteNorth Carolina$387,200$2,187
26JacksonvilleFlorida$370,000$2,180
27BaltimoreMaryland$357,800$2,179
28NashvilleTennessee$385,800$2,174
29ChicagoIllinois$321,000$2,167
30HoustonTexas$327,000$2,143
31MilwaukeeWisconsin$339,600$2,094
32AtlantaGeorgia$354,300$2,081
33RichmondVirginia$362,300$2,071
34San AntonioTexas$320,500$2,069
35PhiladelphiaPennsylvania$315,300$2,037
36Virginia BeachVirginia$313,200$1,851
37Kansas CityMissouri$291,000$1,777
38ColumbusOhio$284,700$1,776
39IndianapolisIndiana$289,300$1,666
40New OrleansLouisiana$265,200$1,609
41MemphisTennessee$268,600$1,587
42BirminghamAlabama$276,500$1,581
43CincinnatiOhio$252,200$1,546
44BuffaloNew York$206,800$1,479
45St LouisMissouri$231,100$1,476
46DetroitMichigan$227,000$1,464
47LouisvilleKentucky$246,000$1,464
48Oklahoma CityOklahoma$227,300$1,450
49ClevelandOhio$191,400$1,295
50PittsburghPennsylvania$175,000$1,174
National$371,200$2,268

So to afford a median-priced home in the country, an American needs to earn closer to $100,000 a year, up from $75,500 in 2022. And even then, they would be priced out of owning a home in nearly half of the 50 largest cities in the country.

As a result Americans may yet further delay home ownership. Renting is now a far more attractive option, thanks to the biggest difference between rent and mortgages in over 50 years.

Where Does This Data Come From?

Source: Home Sweet Home (HSH).

Note: HSH used different sources for their median home prices, mortgage rate, property taxes and home insurance figures for their analysis. Please visit their website for more information.

Other: If other personal debts exceed 8% of one’s given monthly gross income, this may increase the salary needed to qualify for a mortgage.

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