Home WorldOceaniaAustralia Buying a House is not Easy, The World’s 10 Impossibly Unaffordable Cities have been Released

Buying a House is not Easy, The World’s 10 Impossibly Unaffordable Cities have been Released

by Amélie Poulain
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As global prices rise, housing prices remain high. “Buying a house” has become an impossible dream for many people. According to the latest Demographia International Housing Affordability report, the most difficult city to buy a house is Hong Kong in Asia, and the most difficult country to buy a house is the United States, accounting for half of the top ten Impossibly Unaffordable cities.


Living in a very small space is a reflection of the life of some Hong Kong people.
(Photo via unsplash.com)

ORANGE, CA (Merxwire) – As global prices rise and housing prices remain high, “buying a house” has become an impossible dream for many people. According to the latest Demographia International Housing Affordability report, the number one city in which it is most difficult to buy a house is Hong Kong in Asia, which is world-famous for its sky-high rents and ultra-small living spaces. The most difficult country to buy a home in is the United States, which accounts for half the top ten Impossibly Unaffordable cities.

The report surveyed 94 major cities in eight countries and listed the top 10 cities where it is impossible to afford a home. Among them, Hong Kong ranks first, one of the meridian hubs in Asia. The other cities are San Jose, Los Angeles, San Francisco, San Diego, and Honolulu in the United States, Vancouver and Toronto in Canada, and Sydney and Melbourne in Australia.

This global house price report, tracked for 20 years, compares the average income and average house price in major cities around the world, dividing the median house price by the median household income to assess the affordability of home buyers. Hong Kong, which ranks first, has a homeownership rate of 51%, the lowest among all cities. Singapore, an Asian city that is often compared with it, has a homeownership rate as high as 89% due to the government’s favorable public housing policy.

Even though housing prices in Hong Kong have been on a downward trend in the past five years compared to previous years, the cost of renting and buying a house is still very high given the small land and dense population. Some people live in so-called “dwelling narrowness” or “ant dwellings”. A family lives in a suite of 4 to 5 square meters, or a house is divided into several small rooms for multiple people to rent. The average living space per person is 1 to 2 square meters. All living facilities are squeezed into the same small space, and everyone is struggling to survive in a very small environment.

Five cities in the United States have entered the top 10 rankings where it is difficult to buy a house. The main reasons are rising housing prices, limited affordability of home buyers, and an insufficient number of good housing properties, making it difficult for those who want to buy a house to grab one. When there are insufficient houses, the seller will also increase the transaction conditions, such as increasing the selling price or even requiring full payment, making it more difficult to buy a house. Moreover, banks’ mortgage and credit lending are also in a state of tightening, and interest rates continue to rise, making it more difficult to buy a house.

If you can create the living environment you want in a limited space, you can live more comfortably.
(Photo via unsplash.com)

Sydney and Melbourne are also facing a shortage of housing, making buying and leasing conditions more stringent. Since September 2022, the number of rental housing in Australia has declined by 7.1%, with the decline rates in Sydney and Melbourne as high as 12% and 20%. The overall number of rental housing in the two cities is 27.3% lower than the average of the past five years. Even though some homeowners tended to sell their houses instead of renting after COVID-19, the median price of independent houses still increased by 2.1% to 7.6% according to different regions, and even higher in some elite areas. Coupled with rising interest rates, buyers’ borrowing capacity is limited, making it difficult to buy or rent a house.

Housing-buying difficulties in Canada are related to a large number of immigrants. Because the increase in immigrants and international students in recent years has stimulated the demand for housing, housing prices have continued to rise. However, due to rising construction costs, the pace of housing construction cannot keep up with the increase in demand. Therefore, government agencies have limited the time for international student permits, strictly reviewed the issuance of post-graduation work permits, and extended the already implemented ban on foreigners buying houses for another two years to protect the rights of Canadian citizens to buy houses, hoping to make it easier for people to buy houses.

In addition to hope that authorities in various countries can propose effective housing market policies to reduce the difficulty of buying a house, break through the existing difficulties, and allow more people to have the opportunity to own their own homes. People who now own small square meters of houses or are renting can still make good use of the current space and create a comfortable world for themselves and their families in a limited living environment. Living comfortably will bring happiness in life, improve work efficiency, and preserve one’s ability to buy a house.

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