According to a MoneyTransfers analysis, Hong Kong is the least affordable place globally. The city has a median multiple of 23.2, topping the global list of most expensive housing markets for 12 consecutive years.
MoneyTransfer’s CEO Jonathan Merry says, “The average housing affordability in 2022 is languishing, with a five times increase in markets with median multiples of 10 or more as just a decade ago.
In addition, more than 200,000 people in Hongkong live in “cage homes” or subdivided flats. These living arrangements contribute to anxiety and depression among residents who don’t have enough space or privacy.”
Hongkong Losing Step
The global pandemic has worsened the housing affordability crisis in many countries. However, that’s not the only reason people have trouble buying a home. It’s also because it’s been increasingly difficult for middle-class families to purchase a home over the last few years. As a result, the number of housing markets deemed “severely unaffordable” worldwide increased by 60% compared to 2019 (before the pandemic).
According to market analysts, it would take an ordinary family nearly 21 years to buy a home in Hong Kong, which doesn’t even consider spending on daily necessities.
Hongkong was followed by Sydney at 15.3, Vancouver at 13.3, San Jose at 12.6, and Melbourne at 12.1 as the most unaffordable markets in the world. Pittsburgh (2.7) is the most affordable market, followed by Oklahoma City and Rochester (3.3), with Edmonton and St Louis rounding out the top five at 3.6.
Will Hong Kong Fix its Housing Crisis
Hong Kong’s former security chief John Lee, who has been sworn in as the city’s new chief executive promises to bring better resolutions. He has pledged that housing will be a major focus of his administration and has presented ideas for how to increase the supply. Full story and statistics can be found here: Hong Kong Is World’s Least Affordable Housing Market in the World in 2022
