The 10 most expensive cities around the world to buy property
08 Apr 2026
Three Aussie cities make the top 10 list of the most expensive housing markets around the world. Is your city one of them?
What makes a city ‘unaffordable’?
While some may consider the price of housing, rental costs or the general cost of living to determine a city’s affordability, the Demographia International Housing Affordability report uses something called a “median multiple”– the median house price divided by the median pre-tax household income–to rate specific cities.
The ratings are as follows:
- Affordable: 3.0 and under
- Moderately Unaffordable: 3.1 to 4.0
- Seriously Unaffordable: 4.1 to 5.0
- Severely Unaffordable: 5.1 to 8.9
- Impossibly Unaffordable: 9.0 and over
The 2025 report crunched the numbers on 95 major housing markets (metropolitan areas) in eight nations—Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States.
The most recent edition of the report found Sydney to be the second most unaffordable housing market, trailing only Hong Kong, and author Wendell Cox, principal of Demographia, says it paints a worrying picture.
“Middle-income homeownership was once widespread, with house prices aligned with incomes. Since the 1990s, however, prices have surged–especially in markets governed by urban containment strategies (e.g., San Francisco, Sydney, London)–with homes now costing 9-15 times household income.
“This shift is linked to the international planning orthodoxy, which restricts urban expansion through greenbelts, urban growth boundaries (UGBs), rural zoning, and compact city policies. While intended to increase density and sustainability, these policies have severely limited land supply, raising land and housing costs and making housing unaffordable for the middle class.”
The 10 most expensive cities in the world
These cities are home to the world’s least affordable housing markets:
1. Hong Kong, China
Median multiple: 14.4
2. Sydney, Australia
Median multiple: 13.8
3. San Jose, USA
Median multiple: 12.1
4. Vancouver, Canada
Median multiple: 11.8
5. Los Angeles, USA
Median multiple: 11.2
6. Adelaide, Australia
Median multiple: 10.9
7. Honolulu, USA
Median multiple: 10.8
8. San Francisco, USA
Median multiple: 10.0
9. Melbourne, Australia
Median multiple: 9.7
10. San Diego, USA
Median multiple: 9.5
Source: Demographia International Housing Affordability report 2025 edition.
What about the rest of Australia?
With three of Australia’s capital cities making the top 10 least affordable housing markets, you may be wondering how other Aussie cities fared. The news isn’t great. According to the report, all five of Australia’s major housing markets have been severely unaffordable since the early 2000s, with Brisbane (9.3) and Perth (8.3) sitting just outside the top 10 least affordable, at 11th and 14th respectively.
Mr. Cox notes that it’s quite remarkable that these Australian markets are less affordable than widely recognised world cities like New York, London and Chicago. Other Australian cities like Canberra, Hobart and Darwin are not currently listed.
Here’s how each listed Australia city’s median multiple changed between 2024 and 2025:
- Sydney: No change
- Adelaide: +1.2
- Melbourne: -0.1
- Brisbane: +1.2
- Perth: +1.5
What about the rest of the world?
Of the countries not yet mentioned, England’s Greater London (9.1) was the 12th most expensive, and Auckland in New Zealand’s north island (7.7) wasn’t far behind at 16th. The Irish capital, Dublin (5.1), sat around mid-table, whereas Singapore (4.2) was the 17th most affordable city listed.
The world’s 10 most affordable cities
1. Pittsburgh, USA
Median multiple: 3.2
2. Cleveland, USA
Median multiple: 3.3
3. St. Louis, USA
Median multiple: 3.5
4. Rochester, USA
Median multiple: 3.6
=5. Edmonton, Canada, Middlesbrough & Durham, UK, Oklahoma & Omaha, USA
Median multiple: 3.7
9. Sheffield, UK
Median multiple: 3.8
=10. Cincinnati & Detroit, USA
Median multiple: 3.9
Source: Demographia International Housing Affordability report 2025 edition.
This article was reviewed by our Finance Editor Brooke Cooper before it was updated, as part of our fact-checking process.
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