A stark reality is revealed in a comprehensive study on global housing affordability, shared by CNN. It paints a grim picture, labeling several major cities as 'impossibly unaffordable '. The report, an annual endeavor by Demographic International Housing Affordability (DIHA), exposes a staggering imbalance between average incomes and housing prices. This disparity has been further exacerbated by the pandemic-driven demand for homes with outdoor spaces and restrictive urban planning policies.
Multiple US cities on the West Coast and Hawaii are among the top contenders for unaffordability, with San Jose, Los Angeles, San Francisco, and San Diego all prominently featured.
Honolulu also stands out, representing Hawaii in the list's top tier.
Most Unaffordable International Cities
Internationally, Sydney and several Australian cities, including Melbourne and Adelaide, dominate the ranks alongside Hong Kong, which leads as the most unaffordable city globally.
In Hong Kong, the home ownership rate is significantly lower compared to other nearby places. This is primarily due to the city's stringent housing policies and the overwhelming demand for housing. As a result, many people in Hong Kong are forced to rent their homes rather than own them, a stark illustration of the global housing affordability crisis.
The report also cited a worldwide pattern in which limited land availability and speculative investments from investors have pushed housing prices to record levels, making it increasingly difficult for middle-class families to afford homes. DIHA suggests implementing strategies similar to New Zealand's approach of proactive land zoning for housing development.
Implementing New Zealand's policies might help ease the pressure and challenges faced in housing markets, especially in US cities and Asian regions.
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