Across the globe, people living in major cities are struggling to find affordable housing options. A recent report from Chapman University and the Frontier Centre for Public Policy in Canada identified which cities are "impossibly unaffordable" for the average resident.
Researchers analyzed the average incomes with average home prices of nearly 100 major cities in eight countries. Within the U.S., San Jose, California is the least affordable housing market. California is home to four of the 10 least-affordable housing markets in the world, including Los Angeles, San Francisco, and San Diego.
The report found that an increase in demand for housing with outdoor space partnered with land use policies that limit urban sprawl helped drive up housing prices across the globe. More investors looking to purchase property also caused a spike in market prices.
While the U.S. is well-represented on the least-affordable list, Americans looking for more affordable housing options are also in luck: The report found that nine of the 10 most affordable cities are located in the U.S.
Graphics and maps explain:Which US county has the highest home prices?
The Demographia International Housing report categorizes middle-income housing affordability in five categories. These categories range from the most affordable to "severely" and "impossibly" unaffordable.
According to author of the research, Wendell Cox, "The term ‘impossible’ was selected to convey the extreme difficulty faced by middle-income households in affording housing."
He continued, "This level of unaffordability did not exist just over three decades ago. Furthermore, securing financing for a house at this median multiple is largely impossible for middle-income households."
In 2023, Australia had the highest house price-to-income ratio, meaning the average housing market in the nation was impossibly unaffordable. All five of Australia’s major housing markets have been severely unaffordable since the early 2000's, according to the report.
Affordable housing can vary immensely within the same nation, depending on the market.
The top three least affordable housing markets are located outside of the U.S.. These markets include Hong Kong, China, Sydney, Australia, and Vancouver, Canada.
These markets have the most in the US:Affordable homes under $200,000 are still out there
Pittsburgh’s housing market was the most affordable of the 94 cities analyzed. Rochester, New York and St. Louis, Missouri follow, rounding out the top three most affordable housing markets identified in the report.
Singapore has the highest rate of home ownership at 89%. Ireland and Canada round out the top three nations with the highest rate of home ownership.
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