DEMOGRAPHIA+國(guó)際住房負(fù)擔(dān)能力報(bào)告+2023年版

DEMOGRAPHIA

INTERNATIONALHOUSING

AFFORDABILITY

2023EDITION

PRESENTEDBYTHEURBANREFORMINSTITUTEANDTHEFRONTIERCENTREFORPUBLICPOLICY

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TABLEOFCONTENTS

Introductionv

ExecutiveSummary1

1:AssessingHousingAffordability4

2:TheSituation6

3:InternationalHousingAffordabilityin20227

4:UnaffordableHousingIntensifiesInequality14

5:Appendix–UrbanContainment16

Photocredits:CoverandTableofContentsphotosbyFutureAtlas(/blog)usedunderCC2.0License

Tables

ES-1DemographiaHousingAffordabilityRatings

1

ES-2HousingAffordabilityRatingsbyNation

2

1DemographiaHousingAffordabilityRatings

4

2HousingAffordabilityRatingsbyNations

7

3HousingMarketsRankedbyAffordability

8

4AllHousingMarketsbyNation

19

Figures

1AffordabilityWithinHousingMarkets5

2InternationalHousePrice-to-IncomeRatios6

3Middle-IncomeHousingAffordability:Australia9

4Middle-IncomeHousingAffordability:Canada10

5HousingAffordabilityDeterioration:BritishColumbia10

6HousingAffordabilityDeterioration:GreaterTorontoArea10

7HousingAffordabilityRange,1971-2022:CanadaMarketsOver1M11

8MedianAffordabilityRatio:England,Wales,andRegions12

9HousingAffordability:CaliforniaandU.S.13

10HousingAffordabilityRange:1969-2022:U.S.MarketsOver1M14

11HousingShareofExcessCostsofLiving:U.S.Markets15

12UrbanContainmentEffectonLandValue17

13Vancouver,Toronto&Winnipeg:HowLandPricesDriveHousingCosts18

IntroductIon

urbanReformInstitute

acentrT

pportunityurbanism

1INTRODUCTION

TheUrbanReformInstituteandtheFrontierCentreforPublicPolicyarepleasedtopresentthe2023editionofDemographiaInternationalHousingAffordability.Thisreportprovideshousingaffordabilityratings,usingthemedianmultiple,ameasurementofincomeinrelationtohousingprices,for94majormarkets(metropolitanareas)ineightnationsforthethirdquarterof2022.

Asthepandemicandlockdownscontinuedintoanotheryear,themovementofhouseholdsfromdenserurbanneighborhoodstolargerhomes,oftenwithlargeyards(gardens)insuburbanandoutlyingareashascontinued.Theresulthasbeentodriveuppricesatunprecedentedratesin

manymarkets.Asaresultmanylow-incomeandmiddle-incomehouseholdswhoalreadyhavesufferedtheworstconsequencesfromhousinginflationwillseetheirstandardsoflivingfurtherdecline.

Housingaffordabilitygenerallystabilizedin2022,thoughathigherpricesthanbeforethepan-demic.Insomemarketstherehasbeenimprovement.

Housingaffordabilityisparticularlycriticalduetothestrongincreaseinremoteworking(tele-

work)whichisacceleratingthemovementtomoreaffordableplaces.Itwilllikelyalsohelpflattenorevenreducepricesinthehighestcosthousingmarketsasotherhouseholdsseeklesscostlyhousingelsewhere.

Theauthor,WendellCoxisaseniorfellowatboththeUrbanReformInstituteandtheFrontierCentreforPublicPolicy.

CharlesBlain

President

UrbanReformInstitute

.

3900EssexLane,Suite1200Houston,Texas77027

PeterHolle

President

FrontierCentreforPublicPolicy

203-2727PortageAvenue

Winnipeg,ManitobaR3J0R2

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITYv

DemographiaInternationalHousing

Affordabilityusesthe“medianmultiple”toratemiddle-incomehousingaffordability(TableES-1).Themedianmultipleisa

price-to-incomeratio,whichisthemedianhousepricedividedbythegrossmedianhouseholdincome(pre-tax).

ExEcutIvESummary

EXECUTIVESUMMARY

...theaffordabilityofhousingisoverwhelminglyafunctionofjustonething,theextenttowhichgovernmentsplaceartificialrestrictionsonthesupplyofresidentialland.

Dr.DonaldBrash

Governor,ReserveBankofNewZealand(1988-2002),

Introduction,4thAnnualDemographiaInternationalHousingAffordabilitySurvey(2008)

DemographiaInternationalHousingAffordabilityratesmiddle-incomehousingaffordabilityin94majorhousingmarketsineightnations:Australia,Canada,China,Ireland,NewZealand,Singapore,theUnitedKingdomandtheUnitedStates.Thiseditioncoversthethirdquarter(Septemberquarter)of2022.

AssessingHousingAffordability:Oftenhousingaffordabilityisevaluatedbysimplycomparinghouseprices.However,withoutconsiderationofincomes,housingaffordabilitycannotbeas-sessed.Housingaffordabilityishousepricesinrelationtoincomes.

TableES-1

DEMOGRAPHIAHOUSINGAFFORDABILITYRATINGS

HousingAffordabilityRating

MedianMultiple

Affordable

ModeratelyUnaffordable

SeriouslyUnaffordable

SeverelyUnaffordable

3.0&Under

3.1to4.0

4.1to5.0

5.1&Over

Medianmultiple:Medianhousepricedividedbymedianhouseholdincome

Middle-incomehousingaffordabilityisratedinfourcategories,rangingfromthemostaffordable(“affordable”)totheleastaffordable(severelyunaffordable):

Housingmarketsaremetropolitanareas,whicharealsolabormarkets.Inawell-functioning

market,themedianpricedhouseshouldbeaffordabletoalargeportionofmiddle-incomehouse-holds,aswasoverwhelminglythecaseafewdecadesago.

Housingaffordabilitycomparisonsaremade,(1)betweenhousingmarkets(suchascomparisonbetweenAdelaideandMelbourne)or(2)overtimewithinthesamehousingmarket(suchbe-

tweenyearsinAdelaide).

Housingaffordabilityin2022issummarizedbynationinTableES-2.

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY1

ExEcutIvESummary

TableES-2

HousingAffordabilityRatingsbyNation:TotalsbyMarket

Nation

Affordable(3.0&Under)

Moderately

Unaffordable

(3.1-4.0)

Unaffordable(4.1-5.0)

Seriouslyby

Severely

Unaffordable(5.1&Over)

Total

MedianbyNation

Australia

Canada

China:HongKong

Ireland

NewZealand

Singapore

UnitedKingdom

UnitedStates

0

0

0

0

0

0

0

0

0

1

0

0

0

0

0

12

0

1

0

0

0

0

10

18

5

4

1

1

1

1

13

26

5

6

1

1

1

1

23

56

8.2

5.3

18.8

5.1

10.8

5.3

5.3

5.0

TOTAL0132952945.3

InternationalHousingAffordabilityin2022:Housingaffordabilityin2022continuedtoreflectthehugepriceincreasesthatoccurredduringthepandemicdemandshock.Somehousingafford-

abilityimprovementshavesinceoccurredandmorearelikelyasthedemandshockishopefullyreplacedbymorenormalmarkettrends.

HongKongistheleastaffordablemarket,withamedianmultipleof18.8.Sydneywasthesecondleastaffordableat13.3,Vancouverat12.0,Honoluluat11.8,SanJoseat11.5,LosAngeles11.3,

Auckland10.7,Melbourneat9.9,Torontoat9.5andSanDiegoat9.4.ThemostaffordablemarketisPittsburgh,at3.1,followedbyRochesterat3.2,ClevelandandSt.Louis,at3.5.

HowHousingUnaffordabilityIntensifiesInequality:Thereisabroadviewthatdeterioratinghousingaffordabilityisanexistentialthreattothemiddle-class.

InUnderPressure:TheSqueezedMiddle-Class,theOECDfindsthatthemiddle-classfacesrisingcostsoflivingandthatincreasingownedhousepricesarethe“maindriverofrisingmiddle-classexpenditure.”

Muchofthedifferenceinthecostoflivingbetweenmetropolitanareas(withinnations)isex-

plainedbyhousingaffordabilitydifferences.Additionally,agrowingbodyofresearchindicatesastrongassociationbetweenthedecliningfertilityratesthatafflictsomanynationsandthehous-ingaffordabilityandcostoflivingcrises.

Moreover,ashousingbecomesmoreunaffordable,householdsmigratetomoreaffordablemar-kets.ThisisillustratedbythesubstantialnetmovementoccurringfromhousingmarketsintheUnitedStatesandCanada(especiallyCaliforniamarkets,alongwithTorontoandVancouver).

FrencheconomistThomasPikettyhasdescribedgrowingwealthinequalityaroundtheworld.1MatthewRognlie,ofNorthwesternUniversityhasshownthatmuchofthisinequalityistraceabletorapidlyrisinghousevalues2,whichresultsinworseninghousingaffordability.

1ThomasPiketty,(2014).CapitalintheTwenty-FirstCentury.

2MatthewRognlie,“AnoteonPikettyanddiminishingreturnstocapital,”June15,2014.Availableonlineat

http://

/piketty_diminishing_returns.pdf

.

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY2

ExEcutIvESummary

Thisisnotsurprising,sincethedominantformoflanduseregulationaroundtheworldhas

becomeurbancontainment,whichseverelyrestrictshousingconstructionontheurbanperiphery,whichhasbeenassociatedwithmaterialdeteriorationinhousingaffordabilityandtheworseningcostoflivingcrisis.

Wherelandusepolicycontributestodeterioratinghousingaffordability,theresultingincreaseininequalitycanbeviewedasanoutcomeofpublicpolicy.Solvingthehousingaffordabilityproblemrequiresreformsthatrestorethecompetitivemarketforlandinhighlyregulatedmarketsand

avoidinglandusepoliciesthatworsenaffordabilitywherecompetitivelandmarketscontinuetoexist.

Rognliesuggeststhat,“Anaturalfirststeptocombattheincreasingroleofhousingwealthwouldbetore-examinetheseregulationsandexpandthehousingsupply.”3

3MatthewRognlie,“AnoteonPikettyanddiminishingreturnstocapital,”June15,2014.Availableonlineat

http://

/piketty_diminishing_returns.pdf

.

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY3

DemographiaInternationalHousing

Affordabilityusesthe“medianmultiple”toratemiddle-incomehousingaffordability.Themedianmultipleisaprice-to-incomeratioofthemedianhousepricedivided

bythegrossmedianhouseholdincome.Price-to-incomeratioshavebeenwidelyused,suchasbytheWorldBank,6the

1:ASSESSINGHOUSINGAFFORDABILITY

DEMOGRAPHIAINTERNATIONALHOUSING

AFFORDABILITY:2023EDITION

…toencourageaproperty-owningdemocracy…andtoenable…citizensinthelowermiddleincomegrouptoowntheirownhomes

–SingaporeHousingandDevelopmentBoard1964AnnualReport

DemographiaInternationalHousingAffordability4ratesmiddle-incomehousingaffordability

in94majorhousingmarkets5ineightnations:Australia,Canada,China,Ireland,NewZealand,

Singapore,theUnitedKingdomandtheUnitedStates.This2023editionrateshousingafford-

abilityforthethirdquarter(Septemberquarter)of2022.Thisisthe19theditionintheseries.The2016editionwasfeaturedintheInternationalMontaryFund

GlobalHousingWatch

newsletter.

1:ASSESSINGHOUSINGAFFORDABILITY

Sometimeshousingaffordabilityisevaluatedsimplybycomparinghouseprices.However,

withoutconsiderationofincomes,housingaffordabilitycannotbeassessed.Housingaffordabilityishousepricesinrelationtoincomes.

Table1

DEMOGRAPHIAHOUSINGAFFORDABILITYRATINGS

HousingAffordabilityRating

MedianMultiple

Affordable

ModeratelyUnaffordable

SeriouslyUnaffordable

SeverelyUnaffordable

3.0&Under

3.1to4.0

4.1to5.0

5.1&Over

Medianmultiple:Medianhousepricedividedbymedianhouseholdincome

UnitedNations,theOrganizationforInternationalCooperationandDevelopment(OECD),theJointCenterforHousingStudiesatHarvardUniversityandothers.Medianpriceandincomemeasures

4DemographiaInternationalHousingAffordabilityprovidesanalysissimilartothemajormarketanalysisinthe16editionsoftheDemographiaInternationalHousingAffordabilitySurvey,co-authoredbyWendellCoxandHughPavletich(2005to2020).

5Majormetropolitanareashave1,000,000ormoreresidents.

6TheHousingIndicatorsProgram,

/INTURBANDEVELOPMENT/

Resources/336387-1169578899171/rd-hs7.htm

.AlsoseeShlomoAngel,HousingPolicyMatters:AGlobalAnalysis.OxfordUniversityPress,2000.

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY4

1:ASSESSINGHOUSINGAFFORDABILITY

betterreflecttheeconomicimpactsonmiddle-incomeandlower-incomehouseholds,asopposedtoaverages,whichareskewedupwardbytheinclusionofthehighestincomesandprices.7

Middle-incomehousingaffordabilityisratedinfourcategories,rangingfromthemostaffordable(“affordable”)totheleastaffordable(severelyunaffordable),asindicatedinTable1(above).

TheGeographyofHousingAffordability

Mostinternationalhousingaffordabilitycomparisonsareatnationallevel.However,thesehigh-er-levelhousingaffordabilitymeasuresmissthesubstantialdifferencesinhousingaffordabilitybetweenhousingmarketsinthesamenations.Forthisreason,Demographiafocusesatthe

housingmarketlevelwithinnations.Housingmarketsareessentiallylabormarkets(whicharealsometropolitanareas).8

Housingaffordabilitycomparisonsaremade,

(1)betweenhousingmarkets(suchascom-

parisonbetweenAdelaideandMelbourne)or

(2)overtimewithinthesamehousingmarket

(suchbetweenyearsinAdelaide).

Atthesametime,theretendtobesubstantial

housingaffordabilitydifferenceswithinhous-

ingmarkets,withhighermedianmultiples

inurbancores,wherepopulationdensities

arehigher,thanoutsideurbancores.Thisis

illustratedin2021datafortheNewYorkand

SanFranciscomarkets(Figure1).9

7Themedianmultiplehasbeencriticizedfornottakingintoaccountotherfactorsthatcanaffecthousingafford-

ability,suchasinterestrates,mortgageavailability,andhousingquality.However,thesefactorstendtovarylittlebetweenmarketswithinnations.Moreover,thehistoric,pre-urbancontainmentmedianmultipleswereremarkablysimilarevenbetweenthenationsintheDemographiaseries(Section1).

8Housingmarkets(andlabormarkets)aregenerallymetropolitanareas,whicharethe“functional”definitionof

cities.Thisisincontrasttoindividualmunicipalities,oftencalledcities,andaretypicallynumerousinallbutafewofthehousingmarketsinDemographiaInternationalHousingAffordability.

9Thisisbasedonsurveydata,nothouseprices.TheurbancoresaretheboroughofManhattanfortheNewYorkhousingmarketandthecity/countyofSanFranciscofortheSanFranciscohousingmarket.

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY5

2InternationalHousePrice-to-IncomeRatios

2:THESITUATION

2:THESITUATION

Thepandemiccreateda

demandshock

thatledtorapidandunprecedenteddeteriorationin

housingaffordability.Accordingto

SamKhater,chiefeconomistattheUSFederalHomeLoan

MortgageCorporation

(FreddieMac)characterized“theeffectoftheCovid-19pandemic”as

“unusualinthatitspurredhousingdemandbecausehigher-incomehouseholdswhowereabletoworkfromhomewantedmorespaceandwerewillingtolivefartherfromtheiroffices.”

However,houseaffordabilityhasgenerallystabilizedrecently,thoughathigherlevelsthanbeforethepandemic.Insomemarketstherehasbeenimprovement.Thisisthetypeofmarketbehaviorthatisexpectedwhenademandshockpasses.Economistshavefoundthathousepricesinmorehighlyregulatedhousingmarketstendtobemorevolatile,10andthelargesthousepricedeclineshavebeeninthemosthighlyregulatedmarkets.

Inawell-functioningmarket,themedianpriced

housesshouldbeaffordabletomiddle-income

households,astheywereinvirtuallyallmar-

ketsbeforetheinceptionofmorerestrictive

landusepolicies,especiallyurbancontain-

ment.Onlyafewmarketshadadoptedsuch

policiesbythe1970s,withmanymoreto

follow(seeAppendix:UrbanContainment).As

lateasabout1990nationalprice-to-incomera-

tioswere“affordable,”at3.0orlessinAustralia,

Canada,Ireland,NewZealand,theUnited

KingdomandtheUnitedStates(Figure2).

10E.L.,Glaeser,J.Gyourko,J.,andA.Saiz,A.(2008).HousingSupplyandHousingBubbles.JournalofUrbanEconomics,64(2),198-217.

/10.1016/j.jue.2008.07.007

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY6

3:INTERNATIONALHOUSINGAFFORDABILITYIN2022

3:INTERNATIONALHOUSINGAFFORDABILITYIN2022

Housingaffordabilityin2022followedsimilarpatternsin2021,followingthehugepandemicdemandshockincreases.

In2022,noneofthe94majormarketswereaffordable.Thisisthefirsttimeinthe19yearsof

theDemographiaInternationalHousingAffordabilityseriesthattherehasnotbeenanafford-

ablemarket.Bycontrast,therewere10affordablemarketsin2019,or11percentofthemajormarkets.In2011,25percentofthemajormarketswereaffordable.Therehasbeenasubstantialincreaseinseverelyunaffordablemarkets,including52ofthe94majormarkets(55percent)in2022.Thiscomparesto30percentin2011and34percentin2019,thelastpre-pandemicyear.

Somehousingaffordabilityimprovementshavesinceoccurredandmorearelikelyasthedemandshockseemslikelytobereplacedbymorenormalmarkettrends.Forexample,medianhouse

pricereductionsweresufficienttoreturnPittsburghandRochesterto“affordable”ratingsbytheendof2022.

Housingaffordabilityin2022issummarizedbynationinTable2.

Table2

HousingAffHoursdingaAfoilrditailitRyatiingsgbNtyion:TotalsbyMarket

Nation

Affordable(3.0&Under)

Moderately

Unaffordable

(3.1-4.0)

Seriously

Unaffordable

(4.1-5.0)

Severely

Unaffordable(5.1&Over)

Total

MedianMarket

Australia

Canada

China:HongKong

Ireland

NewZealand

Singapore

UnitedKingdom

UnitedStates

0

0

0

0

0

0

0

0

0

1

0

0

0

0

0

12

0

1

0

0

0

0

10

18

5

4

1

1

1

1

13

26

5

6

1

1

1

1

23

56

8.2

5.3

18.8

5.1

10.8

5.3

5.3

5.0

TOTAL0132952945.3

TheleastaffordablemarketisHongKong,withamedianmultipleof18.8,followedbySydneyat13.3,Vancouverat12.0,Honolulu(HI)at11.8,SanJose(CA)at11.5,LosAngeles(CA)at11.3,

Aucklandat10.8,SanFrancisco(CA)at10.7andMelbourneat10.1.ThemostaffordablemarketisPittsburgh(PA),at3.1,followedbyRochester(NY)at3.2,Cleveland(OH)andSt.Louis(MO-IL),at3.5.

Housingaffordabilityforall94marketsisshownbymedianmultipleinTable3andbynationinTable4(followingSection5:Appendix–UrbanContainment).

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY7

3:INTERNATIONALHOUSINGAFFORDABILITYIN2022

Table3

HOUSINGMARKETSRANKEDBYAFFORDABILITY:MOSTAFFORDABLETOLEASTAFFORDABLE

MedianMultiple(MedianHousePrice/MedianHouseholdIncome):2022:ThirdQuarter

Rank

Nation

MetropolitanMarket

MedianMultiple

Rank

Nation

MetropolitanMarket

MedianMultiple

1

U.S.

Pittsburgh,PA

3.1

47

U.K.

Nottingham

5.3

2

U.S.

Rochester,NY

3.2

47

U.S.

Nashville,TN

5.3

3

U.S.

Cleveland,OH

3.5

50

Australia

Perth,WA

5.4

3

U.S.

St.Louis,MO-IL

3.5

50

Canada

Montreal,QC

5.4

5

U.S.

Cincinnati,OH-KY-IN

3.6

50

U.K.

Warrington&Cheshire

5.4

5

U.S.

OklahomaCity,OK

3.6

50

U.S.

Charlotte,NC-SC

5.4

7

U.S.

Buffalo,NY

3.7

54

U.K.

GreaterManchester

5.5

8

U.S.

Detroit,MI

3.8

54

U.S.

Jacksonville,FL

5.5

9

U.S.

Louisville,KY-IN

3.9

56

U.K.

WestMidlands

5.7

9

U.S.

Tulsa,OK

3.9

57

U.S.

Providence,RI-MA

5.8

11

Canada

Edmonton,AB

4.0

58

U.S.

Austin,TX

5.9

11

U.S.

Hartford,CT

4.0

58

U.S.

Tucson,AZ

5.9

11

U.S.

KansasCity,MO-KS

4.0

60

U.S.

Phoenix,AZ

6.0

14

U.S.

Columbus,OH

4.1

60

U.S.

Sacramento,CA

6.0

14

U.S.

GrandRapids,MI

4.1

62

U.S.

Fresno,CA

6.1

14

U.S.

Indianapolis.IN

4.1

62

U.S.

Tampa-St.Petersburg,FL

6.1

14

U.S.

Minneapolis-St.Paul,MN-WI

4.1

64

U.K.

Leicester&Leicestershire

6.2

14

U.S.

Philadelphia,PA-NJ-DE-MD

4.1

64

U.S.

Orlando,FL

6.2

19

U.K.

Glasgow

4.2

66

U.K.

Northampton

6.4

19

U.S.

Chicago,IL-IN-WI

4.2

67

U.K.

Swindon

6.5

21

Canada

Calgary,AB

4.3

68

U.S.

Boston,MA-NH

6.6

21

U.K.

Blackpool&Lancashire

4.3

68

U.S.

SaltLakeCity,UT

6.6

21

U.S.

Baltimore,MD

4.3

70

U.S.

Portland,OR-WA

6.7

21

U.S.

VirginiaBeach-Norfolk,VA-NC

4.3

71

U.S.

LasVegas,NV

6.9

25

U.K.

Newcastle

4.4

71

U.S.

Seattle,WA

6.9

25

U.K.

Sheffield

4.4

73

U.K.

Plymouth&Devon

7.0

27

U.S.

Atlanta,GA

4.5

73

U.S.

Denver,CO

7.0

28

U.K.

Middlesbrough&Durham

4.7

73

U.S.

Riverside-SanBernardino,CA

7.0

28

U.S.

Houston,TX

4.7

76

U.S.

NewYork,NY-NJ-PA

7.1

28

U.S.

Memphis,TN-MS-AR

4.7

77

U.K.

LondonExurbs

7.3

28

U.S.

NewOrleans.LA

4.7

78

Australia

Brisbane,QLD

7.4

32

U.K.

Liverpool

4.8

79

U.K.

Bristol-Bath

7.5

32

U.S.

Birmingham,AL

4.8

80

U.K.

Bournemouth&Dorsett

8.0

34

U.K.

Edinburgh

4.9

81

Australia

Adelaide,SA

8.2

34

U.K.

StokeonTrent&Staffordshire

4.9

82

U.S.

Miami,FL

8.5

34

U.S.

Dallas-FortWorth,TX

4.9

83

U.K.

GreaterLondon

8.7

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY8

3:INTERNATIONALHOUSINGAFFORDABILITYIN2022

Table3,contd.

HOUSINGMARKETSRANKEDBYAFFORDABILITY:MOSTAFFORDABLETOLEASTAFFORDABLE

MedianMultiple(MedianHousePrice/MedianHouseholdIncome):2022:ThirdQuarter

Rank

Nation

MetropolitanMarket

MedianMultiple

Rank

Nation

MetropolitanMarket

MedianMultiple

34

U.S.

Richmond,VA

4.9

84

U.S.

SanDiego,CA

9.4

34

U.S.

SanAntonio,TX

4.9

85

Canada

Toronto,ON

9.5

39

U.K.

Derby&Derbyshire

5.0

86

Australia

Melbourne,VIC

9.9

39

U.K.

Leeds

5.0

87

U.S.

SanFrancisco,CA

10.7

39

U.S.

Milwaukee,WI

5.0

88

N.Z.

Auckland

10.8

39

U.S.

Washington,DC-VA-MD-WV

5.0

89

U.S.

LosAngeles,CA

11.3

43

Ireland

Dublin

5.1

90

U.S.

SanJose,CA

11.5

43

U.K.

Hull&Humber

5.1

91

U.S.

Honolulu,HI

11.8

43

U.S.

Raleigh,NC

5.1

92

Canada

Vancouver,BC

12.0

46

Canada

Ottawa-Gatineau,ON-QC

5.2

93

Australia

Sydney,NSW

13.3

47

Singapore

Singapore

5.3

94

China

HongKong

18.8

Australia:Australianmarketshaveamedianmultipleof8.2,upfrom6.9in2019.Thisisan

increaseof1.3yearsofmedianhouseholdincome.AllfiveofAustralia’smajorhousingmarketshavebeenseverelyunaffordablesincetheearly2000s.

Sydneyhastheleastaffordablemarket,withamedianmultipleof13.3,thesecondleastafford-ablemarketinternationally(ranking93rdinaffordabilityoutof94markets)(Figure3).

Withamedianmultipleof9.9,Melbourneis

the86thleastaffordableofthe94markets.

Adelaidehadamedianmultipleof8.2,ranked

81stamongthe94markets.Brisbane,at7.4

ranked78th,whilePerth,at5.4wasthe50th

leastunaffordablemarket.

Australia’smajorhousingmarketshavehad

especiallyseverehousingaffordabilitylosses.

Adelaidemedianhousepriceshaveincreased

6.1timestherateofinflationsince2020,as

measuredbytheConsumerPriceIndex(CPI).

Sydneypricesincreased6.0timestheCPI,

Brisbane5.2times,Melbourne4.9timesandPerth4.2times.Ineachofthesefivehousingmar-kets,thehousepriceinflationsince2000exceededthatofalloftheproductgroupsconstitutingtheCPI(suchasfood,clothing,transportationandeducationandhealth).11

11CalcualtedfromAustralianBureauofStatisticsandREIAdata.

2023DEMOGRAPHIAINTERNATIONALHOUSINGAFFORDABILITY9

3:INTERNATIONALHOUSINGAFFORDABILITYIN2022

Canada:ThemarketsinCanadahaveamedianmultipleof5.3.FourofthesixmarketsinCanada

areratedseverelyunaffordable.TherehasbeenaconsiderablelossofhousingaffordabilityinCanadasincethemid-2000s,especiallyintheVancouverandTorontomarkets(Figure4,below).Bycontrast,therewasnohousingaffordabilitydeteriorationinthemorethanthreepreceding

decadesinToronto.

VancouverisleastaffordableinCanadaandthethirdleastaffordableofthe94markets,atamedianmultipleof12.0,moreunaffordablethanallmarketsbutHongKongandSydney.Themedianmultiplehasslightlydeterioratedfromthepre-pandemic11.9in2019.

SeverelyunaffordablehousinghasspreadfromVancouvertosmallermarkets,asmetroVancouverhassheddomesticmigrationtosmallermarketsinBritishColumbia,suchas

Chilliwack,theFraserValley,andKelownaandmarketsonVancouverIsland

.From2015to2022,housingaffordabilityhasworsenedbytheequivalentof2.7yearsofmedianhouseholdincomeinthesesmallerma