15 Most Unaffordable Real Estate Markets in 2023
Analytical analysis has shown that housing has become a luxury for people with average incomes. According to a new report by Demographia on housing affordability in 94 cities across 8 different countries, it was found that property in these regions is considered the most expensive. These countries include Canada, Ireland, the United States, the United Kingdom, Singapore, China (Hong Kong), and Australia.
The report used a measure of the ratio of housing prices to income levels, obtained in the third quarter of 2022. For the first time in the history of Demographia’s reports, none of the 94 cities studied were deemed “affordable” by experts.
According to this study, in 2023, the 15 least accessible housing markets in the world are located in the following cities:
| Rank | City | Country |
|---|---|---|
| 1 | Hong Kong | Hong Kong |
| 2 | Sydney | Australia |
| 3 | Vancouver | Canada |
| 4 | Honolulu | USA |
| 5 | San Jose | USA |
| 6 | Los Angeles | USA |
| 7 | Auckland | New Zealand |
| 8 | San Francisco | USA |
| 9 | Melbourne | Australia |
| 10 | Toronto | Canada |
| 11 | San Diego | USA |
| 12 | London | United Kingdom |
| 13 | Miami | USA |
| 14 | Adelaide | Australia |
| 15 | Bournemouth & Dorset | United Kingdom |
These cities are the most inaccessible for potential property buyers. Housing prices in these regions significantly exceed the population’s income levels, making the process of buying property virtually impossible for most people.
In recent years, there has been a sharp increase in housing prices in developed countries. However, further growth will be restrained by two factors. Firstly, the financial capacity of the local population, as buying an apartment has already become unaffordable for most people. Secondly, lending conditions are becoming stricter.
A correction in housing prices has already begun in the real estate market, and there is currently an opportunity for negotiations with sellers. According to experts, there should not be a significant collapse in prices due to high unmet demand.
Therefore, the 15 least accessible real estate markets in 2023 pose a challenge for many potential buyers who are seeking to purchase a home. This phenomenon indicates significant changes in the global real estate market and requires serious analysis and the search for alternative solutions to the housing problem for people with average incomes.
