All over the world, people living in big cities struggle to find affordable housing options, with a recent report from Canada’s Chapman University and the Frontier Public Policy Centre identifying cities that are “way out of reach” for the average resident.
The researchers analyzed average incomes and average home prices in nearly 100 major cities across eight countries. Within the U.S., San Jose, California, is the least expensive market for housing. California is home to four of the 10 cheapest home markets in the world, including Los Angeles, San Francisco and San Diego.
The report said a combination of rising demand for homes with outdoor space and land-use policies to curb urban sprawl has driven up home prices around the world. More investors are looking to buy property, which has also caused prices to soar in the market.
While the United States is often featured on the list of most affordable cities, Americans looking for more affordable housing options are in luck: Nine of the 10 most affordable cities are in the United States, according to the report.
Graphics and maps:Which US counties have the highest home prices?
The housing market is booming
The Demographia International Housing report breaks down home affordability for middle-income earners into five categories. These categories range from most affordable to “very” and “impossibly” out of reach.
“The word ‘impossible’ was chosen to convey the extreme difficulty middle-income families face in purchasing a home,” said study author Wendell Cox.
“This level of housing unaffordability did not exist just 30 years ago,” he added. “Financing a home at this average multiple is nearly impossible for middle-income households.”
Australia had the highest home price-to-income ratio in 2023, meaning the average housing market in the country was unaffordable. All five of Australia’s largest housing markets have been extremely unaffordable since the early 2000s, according to the report.
Affordable housing can vary widely within a country, depending on the market.
The cheapest cities to live in in the world
The top three least affordable housing markets are outside the U.S. These markets include Hong Kong, China, Sydney, Australia, and Vancouver, Canada.
- Hong Kong, China
- Sydney, New South Wales
- Vancouver, British Columbia
- San Jose, California
- Los Angeles, California
- Honolulu, Hawaii
- Melbourne, Victoria
- San Francisco, California
- Adelaide, South Australia
- San Diego, California
The top markets in the U.S. are:There are still affordable homes available for under $200,000.
The most affordable cities in the world
Pittsburgh’s housing market was the most affordable of the 94 cities analyzed, followed by Rochester, New York, and St. Louis, Missouri, which round out the top three most affordable housing markets identified in the report.
- Pittsburgh, Pennsylvania
- Rochester, New York
- St. Louis, Missouri
- Cleveland, Ohio
- Edmonton, Alberta
- Buffalo, New York
- Detroit, Michigan
- Oklahoma City, Oklahoma
- Cincinnati, Ohio
- Louisville, Kentucky
Homeownership around the world
Singapore has the highest homeownership rate at 89%, followed by Ireland and Canada in the top three countries with the highest homeownership rates.
