Infographic: Where It’s Hardest to Afford a Home (2024)

FAQs

Where is the hardest place to afford a home? ›

According to the 2023 International Housing Affordability Survey by Demographia, three out of the 10 least affordable housing markets are in Australia and New Zealand, two are in Canada and four more are located in the United States. The least affordable housing market is Hong Kong.

After Hong Kong, New Zealand and Australia were the least affordable countries overall in the study which looked at the U.S., Canada, the UK, Hong Kong, Singapore, Australia, New Zealand and Ireland. This chart shows the places where it's hardest to afford a home (2023).

Australia is the only country in the study which had multiple cities that failed to rank any better than 'severely unaffordable'. Australia scored increasingly high in housing unaffordability rates, with Sydney ranking as the second most unaffordable of the 92 evaluated cities, with a median multiple of 15.3.

Hong Kong is the least affordable market, with a median multiple of 18.8. Sydney was the second least affordable at 13.3, Vancouver at 12.0, Honolulu at 11.8, San Jose at 11.5, Los Angeles 11.3, Auckland 10.7, Melbourne at 9.9, Toronto at 9.5 and San Diego at 9.4.

To no major surprise, Los Angeles was found to be the least affordable. Two other California cities – Bakersfield and Modesto – found themselves among the top 10 least affordable cities in the U.S. Three Texas cities made the list as well.

There are a number of reasons for the record-low supply, including months of low interest rates and labor and material shortages that limit the ability for new construction.

Strained affordability has seen many homebuilders turn to smaller units. The Pandemic Housing Boom, which pushed national home prices up over 40%, coupled with last year's mortgage rate shock, has resulted in a deterioration of housing affordability.

What state has the most unaffordable housing? ›

According to worldpopulationreview.com, Hawaii is the most expensive state to live in, with its housing costing three times the national average. New York and California rank as the second and third most expensive states in which to live, respectively.

Hong Kong is the most expensive city to live in the world

Owing to its mammoth population size of 7 million people and finite spice, rent and hotels are extremely expensive. The price of food varies – depending on whether you buy fresh, imported produce versus local, market produce.

It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

Experts suggest you might need an annual income between $100,000 to $225,000, depending on your financial profile, in order to afford a $1 million home. Your debt-to-income ratio (DTI), credit score, down payment and interest rate all factor into what you can afford.

The least affordable was Miami, where the median-priced home costs $598,000 and would require a monthly payment of $3,183 to cover mortgage and taxes — more than 85 percent of the local median household income of $44,581 (or $3,715 a month). Los Angeles and New York followed — no surprise given their steep home prices.

The Demographia International Housing Affordability report for 2023 was released on Monday, with Sydney ranking just ahead of the world's least affordable nation Hong Kong.

In fact, out of the nearly 100 housing markets in eight countries examined in the report, just one remained “affordable” when measuring home prices in relation to income: Pittsburgh.

🇺🇸 U.S. 🇺🇸 U.S. Singapore and New York City tied for the first rank amongst the world's most expensive cities in 2022, pushing Israel's Tel Aviv from the first place in 2021 to the third place in 2022.

Where are the most expensive states to live? ›

The ten most expensive states to live in are Hawaii, Massachusetts, California, New York, Alaska, Maryland, Oregon, Connecticut, New Hampshire, and Vermont. Hawaii is the most expensive state to live in, with a cost of living index of 184.

In 2022, the average age of first-time homebuyers was 36, according to the National Association of Realtors (NAR). This is up from 33 in 2021.

In the US, first-time homebuyers are, on average, 33 years old. The average age of homebuyers overall is 47.

Renting offers flexibility, predictable monthly expenses, and someone to handle repairs. Homeownership brings intangible benefits, such as a sense of stability and pride of ownership, along with the tangible ones of tax deductions and equity.

The World's Most Secure Buildings: The White House, Washington, D.C.

The Pentagon is the headquarters building of the United States Department of Defense (DoD), including all three military services: U.S. Army, Navy, and Air Force. It was constructed on an accelerated schedule during World War II.

The Chartwell Estate, located in Beverly Hills, California, is owned by the late head of Univision, Jerry Perenchi. Built in 1933, the French neoclassical home encompasses 25,000 square feet of land. It is situated on a 10-acre expanse of manicured lawns and gardens.

Who is the owner of the biggest house in the world ? Istana Nurul Iman Palace, the official residence of the Sultan of Brunei, Hassanal Bolkiah, is the largest house in the world, spread over 2.15 million square feet.

Depending upon where in the United States you live, it's one of the more expensive countries to live in. Yet 50 other countries are also considered the most expensive in the world, though many of them have costs that are significantly lower than the U.S.

After falling in 2023 and 2024, home prices are predicted to plateau in 2025 before rising again at just above the rate of inflation. However, due to the spike in home values from 2020 through 2022 due to record-low mortgage rates, median sales prices will take at least until 2027 to regain the highs of mid-2022.

Which city has the most unaffordable housing? ›

All the cities on this graphic are classified as severely unaffordable⁠—and, for the 12th year in a row, Hong Kong takes the top spot as the world's most unaffordable housing market, with a score of 23.2.

The US hasn't built enough homes in recent decades. The shortage is among the reasons homes are unaffordable for many Americans. It could also be contributing to other problems — like inequality, low birth rates, and climate change.

No state income tax in Florida, cheaper real estate and the weather are the top reasons broker Melissa Cantway said people are still moving here.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

Again, living expenses vary significantly by location, but we can use some average numbers. The average monthly living expenses for a single person in the USA are $3,189, which is $38,266 per year. The average cost for a family of four is $7,095 per month, which is $85,139 per year.

Many often believed it to be the most expensive in the world. Still, it wasn't until a report released in recent days by the Economist Intelligence Unit (EIU) that declared New York City to, in fact, be the most expensive city on the planet. It's official: New York City is the most expensive city in the world.

As prices become unsustainable and interest rates rise, purchasers withdraw. Borrowers are discouraged from taking out loans when interest rates rise. On the other side, house construction will be affected as well; costs will rise, and the market supply of housing will shrink as a result.

Before a recession hits, home prices are typically at an all-time high. This means that selling your home before a recession will result in a higher profit between the purchase price of the real estate and the sale price, which can increase your capital gains taxes.

The imbalance between supply and demand; resulted from of strong economic growth creating hundreds of thousands of new jobs (which increases demand for housing) and the insufficient construction of new housing units to provide enough supply to meet the demand.

What is the best date to close on a house? ›

If you need to be occupying your home by a certain date to save on rent, it's a much better deal to close at the end of the previous month (for example, January 30) instead of the beginning of the current month (February 1).

With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024. This will be good news for buyers who have been waiting on the sidelines for a good time to enter the market.

"Possibly in 2024, but it will depend on the Fed's decisions about raising rates in the second half of the year," says Fleming. "And even if they do go down, it won't be back to the rates of yesteryear. 6% mortgage rates used to be normal, and that's more reasonable to expect too."

Prospective buyers should bring in more than $100K per year before considering a home in the $800K range. Home pricing is tricky business.

How much income to afford a $500,000 home? To afford a $500,000 home, a person would typically need to make about $140,000 a year, said Realtor.com economic data analyst Hannah Jones. The principal and interest payments would total $2,791 per month, and with taxes and insurance, that number comes up to $3,508.

1. West Virginia. With a Zillow Home Value Index of $146,578, West Virginia is the most affordable state to buy a house in the US. Despite its low home prices, the state boasts natural beauty and outdoor recreation opportunities, making it an attractive option for homebuyers on a budget.

1. Hawaii. Hawaii is known for its beautiful beaches, warm climate, and breathtaking scenery. However, it is also the most expensive state to buy a house, with a Zillow Home Value Index of $834,582.

Hawaii and California are the LEAST affordable places to live in the U.S as incomes fail to keep up with soaring property prices.

What cities have the worst housing crisis in the world? ›

The housing crisis in the developing world

According to this metric, the most unaffordable cities in the world are all in the Global South—cities like Hanoi, Mumbai, Bogotá, Buenos Aires, and Rio de Janeiro, where housing costs exceed 200 or 300 percent of incomes.

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A home with a simple and concise layout is the cheapest type of house to build. Ranch homes are typically single-story structures with attached garages. They're easy to find construction plans for and highly customizable, so you can find a home that fits your needs and budget.

What Is The Most Expensive State To Live In? According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in.

At the metropolitan level, those in Texas and New York headline the list of locations with the highest property taxes. Texas places four major metros in the top 15, while three New York metros are represented—including Rochester, which has the nation's highest property taxes at a 2.4% effective rate.

The ten most expensive states to live in are Hawaii, Massachusetts, California, New York, Alaska, Maryland, Oregon, Connecticut, New Hampshire, and Vermont. Hawaii is the most expensive state to live in, with a cost of living index of 184.