Affordability Index: Here are the World's Most and Least Affordable Cities
By Armaan Dhawan
As sky-high prices continue to make waves in the housing market, a new study has been released on the true affordability of some of the world's largest cities. Let's take a look at some of the most and least affordable cities in the world.
The Demographia International Housing Affordability Report has been conducted annually for the last 20 years by the Center for Demographics and Policy at Chapman University in California and the Frontier Centre for Public Policy, and it offers valuable insight into some of the world's most expensive and most affordable cities.
The score of a city, known as the median multiple, is calculated by dividing the average house price in a city by its gross median household income. This year's study calculated the scores of 94 cities across eight different countries: Australia (5), Canada (6), China (1), Ireland (1), New Zealand (1), Singapore (1), the United Kingdom (23), and the United States (56).
A score of 3.0 or under is considered affordable, 3.1 to 4.0 is moderately unaffordable, 4.1 to 5.0 is seriously unaffordable, 5.1 to 8.9 is severely unaffordable, and 9.0 and over is considered impossible unaffordable. The world as a whole did quite bad, with not a single city ranking as affordable-- the lowest score for any city was 3.1. Out of the 94 cities, only 15 ranked with a score of under 4.0, while 11 cities were considered impossibly unaffordable-- and New York City didn't even make the list.
Hong Kong, located on a small island in southeastern China, ranked most unaffordable on the list, with a score of 16.7. Unfortunately, easy access to its beautiful skyline and bustling financial market comes at a high cost for its 7.4 million residents-- the average home price in the city is 1.16 million dollars, and the city is known for having relatively cramped apartments compared to other cities where you get a large space for your money.
Sydney, Australia's largest city, came in at second, with a score of 13.8. The city is known for its bright beaches and active outdoor lifestyle because of the year-round pleasant weather, but that proves expensive for the 5.3 million people who live in the area-- Sydney's average home price is 1.1 million USD, which is a staggering $1.6 million Australian dollars. Unfortunately, this is the 15th time out of the last 16 studies that Sydney has made the top three most unaffordable cities.
Here's the full list of the world's most unaffordable cities in 2024:
Hong Kong (China)
Median multiple: 16.7
Population: 7.4 million
Average home price: $1.16 million
Sydney, New South Wales (Australia)
Median multiple: 13.8
Population: 5.3 million
Average home price: $1.1 million
Vancouver, British Columbia (Canada)
Median multiple: 12.3
Population: 2.6 million
Average home price: $1.2 million
San Jose, California (United States)
Median multiple: 11.9
Population: 2 million
Average home price: $1.39 million
Los Angeles, California (United States)
Median multiple: 10.9
Population: 12.6 million
Average home price: $1.01 million
Honolulu, Hawaii (United States)
Median multiple: 10.5
Population: 1 million
Average home price: $630,000
Melbourne, Victoria (Australia)
Median multiple: 9.8
Population: 5.3 million
Average home price: $570,000
San Francisco, California (United States)
Median multiple: 9.7
Population: 4.6 million
Average home price: $1.4 million
Adelaide, South Australia (Australia)
Median multiple: 9.7
Population: 1.4 million
Average home price: $520,000
San Diego, California (United States)
Median multiple: 9.5
Population: 3.3 million
Average home price: $1.03 million
The only city rated impossibly unaffordable that didn't make the top ten was Toronto, located in Ontario, Canada, with a median multiple of 9.3.
The title of most affordable city in 2024 goes to Pittsburgh, Pennsylvania, with a score of 3.1. Rochester, New York, and St. Louis, Missouri, followed close behind with scores of 3.4.
Pittsburgh, Pennsylvania (United States)
Median multiple: 3.1
Population: 2.5 million
Average home price: $244,000
Rochester, New York (United States)
Median multiple: 3.4
Population: 1.1 million
Average home price: $203,000
St. Louis, Missouri (United States)
Median multiple: 3.4
Population: 2.8 million
Average home price: $220,000
Cleveland, Ohio (United States)
Median multiple: 3.5
Population: 1.8 million
Average home price: $125,000
Edmonton, Alberta (Canada)
Median multiple: 3.6
Population: 1.6 million
Average home price: $400,000
Buffalo, New York (United States)
Median multiple: 3.6
Population: 1.1 million
Average home price: $230,000
Detroit, Michigan (United States)
Median multiple: 3.6
Population: 4.4 million
Average home price: $250,000
Oklahoma City, Oklahoma (United States)
Median multiple: 3.6
Population: 1.4 million
Average home price: $250,000
Cincinnati, Ohio (United States )
Median multiple: 3.7
Population: 2.3 million
Average home price: $247,000
Louisville, Kentucky (United States)
Median multiple: 3.7
Population: 1.4 million
Average home price: $250,000
Only 15 cities of the 94 total ranked as moderately unaffordable, five of which were slightly too expensive to make the top ten list above. Singapore was also moderately unaffordable with a score of 3.8, along with Blackpool, Lancashire, and Glasgow in the UK and Tulsa, Oklahoma in the US at 3.9.
In total, the world has become extremely expensive lately, with no city in the study scoring under 3.1. Australia's major cities and primarily the western United States have proven to be some of the world's most expensive cities to live in, in addition to a couple of unaffordable cities scattered across Canada. In other words, you might want to think twice before you move to a major city. Instead, consult the full study to find which of the 94 cities might be best for your budget.