Home LanguageEnglish Uneasy to Buy a House, the Global Price to Income Ratio is Seriously Unbalanced

Uneasy to Buy a House, the Global Price to Income Ratio is Seriously Unbalanced

by Amélie Poulain

Owning an ideal house that belongs to oneself or a family is the dream of many people, which can make them feel more stable or get rid of the life of renting a house. However, buying a house is not easy. According to the “Property Prices Index by Country 2021” conducted by Numbeo, the world’s largest city data database, it is found that people in many countries couldn’t realize their dream for a lifetime.

Data shows people in many countries cannot buy a house for a lifetime. (Photo via pexels.com)

Taipei, TAIWAN (Merxwire) – Many people hope to have an ideal house for themselves, with enough living space, and they can live a more practical life and get rid of renting a house. But buying a house isn’t easy for everyone. According to the “Property Prices Index by Country 2021” conducted by “Numbeo”, the world’s largest city data database, it is found that people in many countries have a hard time realizing their dream of buying a house.

The “price to income ratio” refers to the ratio of house prices to the annual household income of residents in a city. The smaller the gap between house prices and annual household income, the lower the number. When house prices are much higher than annual income, the higher the ratio, the more difficult it is to buy a house. According to the international average practice, a figure of 3 to 6 times is a reasonable range, but in fact, there are many countries whose values are far beyond imagination.

The Top Three Hardest to Buy a House are Ghana, Syria, and Hong Kong

The highest price-to-income ratio is Ghana in West Africa, with a figure of 101.2. Ghana is famous for producing gold and is still the world’s major gold producer. However, because resources are controlled by the government and consortiums, people live in poverty. With 30% of the population living below the International Poverty Line Standard and earning less than $30 a month, buying a house has become an impossible dream.

The second highest ranked is Syria in West Asia, with a price-to-income ratio of 66.09, which is an ancient country with a long history. Syria has suffered from civil war for many years. The government army, opposition, and various foreign forces have supported different armies, and the country has been divided for a long time. Year-round wars have suffered heavy casualties, the economy is difficult to develop, the people live unstably, and impossible to buy a house.

Hong Kong, which ranks third, has a house price-to-income ratio of 45.71. Compared with Ghana and Syria, Hong Kong has a higher level of economic development and more prosperous business and tourism activities. However, because the land is narrow and crowded, housing prices remain high. From 2010 to 2019, housing prices have risen by 187%, with an average housing price of USD 1.3 million. A middle-class or white-collar executive with a mid-to-high income needs to work for 20 years to afford a house, so cage homes prevail. The cage home is a dark space with a size of fewer than 3 tsubos, and the living environment is very poor. Now there are micro-apartments, with an average of about 5 to 8 pings, and require good light and ventilation. Because of the gap between rich and poor, a large proportion of people with low and middle incomes still rely on the public housing allocated by the government and even sleep on the streets. Small spaces, economic pressures, and political instability have left Hong Kongers uneasy about the future.

Ranked 4 to 10 are Cambodia, Sri Lanka, Jamaica, Iran, Philippines, China, and Kenya, with ratios ranging from 39.84 to 27.05. These countries are mostly due to political instability, low economic and freedom openness, and it is difficult for people to develop business activities freely and fairly. The gap between the rich and the poor is huge, and it is so hard for most people to buy a house.The Relationship between Genes and Exercise.

The countries with the lowest price-to-income ratio from 100th to 111st are Denmark, Ireland, Cyprus, Qatar, Iceland, Oman, Palestine, United Arab Emirates, Puerto Rico, United States, South Africa, and Saudi Arabia.

In these countries, the ratio is lower, ranging from 2 to 7. People have a much higher chance of buying a house and have less pressure on housing prices. Most of them are developed countries with better economic development, such as Denmark and Ireland. Or oil-rich countries like Saudi Arabia, the United Arab Emirates, and Qatar. Its domestic average personal income and quality of life are relatively high, housing prices are within a reasonable range, social welfare measures are relatively complete, and political stability. Economic development is relatively free and open, creating opportunities to buy houses more easily.

The housing price-to-income ratio in Taiwan is 21.78, ranking 14th, representing the 14th most difficult country in the world to buy a house. It can be seen that living in Taiwan is not easy. Neighboring South Korea which ranked 12th is more difficult than us, and Japan ranked 58th. Except for the high housing prices in Tokyo, other areas have lower prices and more spacious spaces. Due to the large population of major cities in Taiwan, housing prices have remained high. In recent years, due to the COVID-19 epidemic, living costs have continued to rise, but salaries have not increased much, making it more difficult to buy a house.

Therefore, buying a house is a big issue for people in many countries. Some people struggle to realize their dream of buying a house all their lives. There are places where people can only buy tiny, less desirable places to live. Some people need to pay a high mortgage when they buy it so that their quality of life is tightened. Buying a house is a major event in life, whether you could afford to buy is one hurdle, and how to choose is another hurdle. Before buying, you must evaluate your own needs and financial ability, and compare several houses before buying so that you can find an ideal house you like and could afford.

Buying a house is really a big issue for people in many countries. (Photo via pixabay.com)

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Update Required Flash plugin