The 10 most expensive cities around the world to buy property

A new report reveals the 10 least affordable housing markets around the world and two Aussie cities make the list.

Housing affordability in Australia is always a hot topic but how do we compare with the rest of the world? The 2022 Demographia International Housing Affordability report crunched the numbers on 92 major housing markets (metropolitan areas) in eight nations – Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom and the United States. It used something called a “median multiple” – which is the median house price divided by the pre-tax median household income – to rate housing affordability.

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 and over

The 2022 edition, which covers the September quarter of 2021, found that housing affordability in 2021 was considerably worse than before, with a five times increase in markets with median multiples of 10.0 or more than just a decade ago.

“As the pandemic and lockdowns continued into a second year, the movement of households from denser urban neighbourhoods to larger homes, often with large yards (gardens) in suburban and outlying areas has continued. The result has been to drive up prices at unprecedented rates in many markets,” the report explained.

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Hong Kong city view. Image source: EarnestTse/Shutterstock.com

The 10 least affordable major cities around the world

So which major markets are the least affordable around the world? Spoiler alert: two Australian cities feature on the list.

1. Hong Kong, China
Median multiple: 23.2

2. Sydney, Australia
Median multiple: 15.3

3. Vancouver, Canada
Median multiple: 13.3

4. San Jose, USA
Median multiple: 12.6

5. Melbourne, Australia
Median multiple: 12.1

6. Honolulu, USA
Median multiple: 12.0

7. San Francisco, USA
Median multiple: 11.8

8. Auckland, New Zealand
Median multiple: 11.2

9. Los Angeles, USA
Median multiple: 10.7

10. Toronto, Canada
Median multiple: 10.5

What about the rest of Australia?

It probably didn’t surprise many people that Sydney and Melbourne were among the 10 least affordable markets around the world but how about other Aussie cities? 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. And it’s only gotten worse. The report found that Australian markets have a median multiple of 8.0, up from 6.9 two years ago (2019). This equates to an increase of 1.1 years of median household income. Check out the table below for more details.

How Australian major cities rank

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International Affordability Ranking	Housing market	Median multiple
79	Adelaide	8.0
76	Brisbane	7.4
88	Melbourne	12.1
73	Perth	7.1
91	Sydney	15.3

Source: Demographia International Housing Affordability report, 2022 edition. Cities listed in alphabetical order. Ranking is based on 92 markets from most affordable to least affordable.

Cover image source: Ivan Kruk/Shutterstock.com

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This article was reviewed by our Editorial Campaigns Manager Maria Bekiaris before it was updated, as part of our fact-checking process.

Effie Zahos

Canstar Ambassador & Money Expert InvestSMART

Canstar Ambassador & Money Expert InvestSMART Effie Zahos has dedicated her career to help consumers gain a better understanding of their finances. She is currently Canstar Ambassador and Chief Content Officer and Money Commentator at InvestSMART. As one of Australia’s leading personal finance commentators, Effie regularly speaks with media across Australia. Not only is Effie the money expert for the Today Show, her financial commentary features in many of Australia’s other best-known media outlets, including the ABC, news.com.au, the Sydney Morning Herald and the Daily Telegraph. Effie was previously the editor of Money magazine, having helped establish it in 1999. Effie is the author of The Great $20 Adventure, A Real Girl’s Guide to Money and Ditch the Debt and Get Rich. She sits on the board of directors for Ecstra, a not-for-profit organisation committed to building the financial capability of all Australians. You can follow Effie on Twitter, LinkedIn, Instagram or Facebook.

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