Sydney and Hong Kong are the most unaffordable cities in the entire world, according to an international survey. Australia is one of the most unaffordable countries in the entire world, with every major housing market considered “extremely unaffordable.”
- Affordable markets have median home prices of 3 times the median household income
- Sydney’s median home price cost 13 times the median household income
- Hong Kong’s median home price cost 19 times the median household income
Affordability concerns are permeating housing markets across the globe. Hong Kong is the most unaffordable housing market in the world, followed by Sydney, Australia. The U.S. has severe affordability issues along its west coast and Canada is in the midst of dealing with incredibly overpriced markets like Vancouver and Toronto.
A housing market is considered affordable if median homes prices that are about three times the median household income. If prices are more the five times the household income, the housing market is “extremely unaffordable,” according to the survey.
Hong Kong far surpassed the survey’s parameters for measuring affordability, posting median home prices 19 times the household income. Sydney was the second most unaffordable market with home prices 13 times the median household income.
The United States had its fair share of incredibly unaffordable markets, especially along the West Coast. Cities like San Francisco, Los Angeles, and Santa Barbara are all considered “extremely unaffordable.” Santa Cruz was the least affordable city in the United States and the fourth least affordable city in the world. New York and Miami also made the list for cities with some of the worst housing affordability.
Vancouver still topped the charts for unaffordability, despite the Canadian government’s recent efforts to tame housing activity. The city ranked as the third most unaffordable market in the world.