(Yicai Global) June 23 -- Some 80.5 percent of China’s new college graduates need to rent accommodation, according to the results of a survey by 58 Anjuke Real Estate Research Institute.

That figure rises to 88.3 percent in the established first-tier cities such as Beijing and Shanghai, the survey released on June 21 showed, while it falls to 77.7 percent in the new first-tier cities.

The cost of renting becomes too much of a burden for new graduates in first-tier cities when it accounts for more than 40 percent of income, according to another survey, published yesterday by Beike Real Estate Research Institute, part of online real estate brokerage Ke. Some 89.1 percent of respondents said they could accept a rent-to-income ratio of no more than 30 percent.

Beijing tops the graduation season rental index this year, followed by Shanghai, Shenzhen, Hangzhou and Guangzhou, per Beike's survey. The average monthly rent is CNY4,394 (USD678) in first-tier cities, CNY2,097 in new first-tier cities, and CNY1,794 in second-tier ones.

Some 92.3 percent can accept a maximum CNY3,000 a month for rent, Beike’s survey revealed, meaning most new graduates in first-tier cities look for roommates to share the expense.

With regards to commuting time, 43.6 percent refuse to travel more than one hour, while 33.2 percent choose apartments within a 30-minute ride from their office. Due to factors such as the cost of renting and convenient transport systems, those living in first-tier cities accept longer commuting times.

A recent executive meeting of the State Council, China’s cabinet, suggested that local governments need to increase the supply of affordable housing to ease the burden on young people and other social groups.

Editors: Zhang Yushuo, Futura Costaglione