Recently, according to the 2024 demographia international housing burden capacity report, five cities in the united states have become “unaffordable” and become the world's most expensive market. Four of these cities are in california。
Source demographia, copyrighted by original author
Researchers at chapman university and the canadian center for the frontline of public policy analysed 94 major cities in eight countries: the united states, canada, australia, china and the united kingdom, ranking on the basis of the ratio of home price income per metropolitan area, i. E. The median housing price divided by the median household income。
Figure source: index, copyright to original author
Studies have shown that housing prices in san josé, los angeles, san francisco and santiago are “unbelievably high”。
Previous studies have shown that the share of the average listing price in los angeles ($1. 1 million) and the region's average income ($78,671) is required for house purchases (99. 33 per cent). Monthly mortgages and taxes would amount to us$ 6,512. 26。
Source: realtyhop, copyrighted by original author
This suggests that 99 per cent of the income (basically total) of los angeles buyers were used to pay an estimated $6,512 for housing. This money can buy a $1. 1 million house and almost eat the entire city's $78,671 salary. High prices are unbearable。
San jose, california, is the most expensive housing market in the united states, top1, where the median house price last year was 11. 9 times the median household income。
Source demographia, copyrighted by original author
In addition, hong kong (16. 7 per cent) ranked first, followed by sydney (13. 3 per cent) and vancouver (12. 3 per cent), which were among the top three in the last 16 years。
Honolulu (10. 5), melbourne (9. 8), adelaide (9. 7) and toronto (9. 3) are on the market list of “unaffordable housing prices”。
Figure cnn, copyright to original author
The report found that the widening gap between housing costs and income since the outbreak had led to a cost-of-living crisis for many american households。
In recent years, housing in the united states has become particularly difficult to afford。
Unprecedented government spending, extremely low interest rates and shortages caused by disruptions in global supply chains during the epidemic led to inflation reaching its highest level in 40 years in 2022, exceeding 9 per cent。
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The fed's solution was to raise interest rates to over 5 per cent, which raised mortgage rates from less than 3 per cent to their highest level in 20 years, about 7 per cent。
One consequence is that owners who lock down cheap mortgages do not want to lose them by selling them, which leads to a shortage of stocks, further pushing up the house price。
At the same time, many consumers have been hit by soaring food, fuel and housing costs. As a result of rising interest rates, they also pay additional monthly charges for credit cards, car loans and other debts. This reduces their ability to save and borrow when housing prices are near historical highs, leading to a crisis of affordability。
Figure source businessinsider, copyrighted by original author
Both land-use restrictions, monetary and fiscal policies and those who are unwilling to sell their houses are the main causes of the “unaffordable” housing market, and the dream of home ownership is clearly beyond the reach of many。
Despite these problems, chapman's research has brought some good news to americans. Researchers found that 9 of the 10 most generous cities are in the united states。
Source demographia, copyrighted by original author
It is also understandable why there has been a wave of interstate migration in the united states over the years, with 341,866 net losses in california last year。
It seems that more and more people will be forced to look for the next “feng shui land” because of housing. What do you think about that
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