Top 10 Impossibly Unaffordable Cities in the World in 2024: Hong Kong Tops the List

Anyone who has observed the housing market over the past two decades can attest that buying a home has become increasingly difficult, especially in some of the world's most prominent cities. 

A recent report has taken this sentiment a step further by introducing a new category: "impossibly unaffordable" cities. 

This label underscores the growing disparity between average incomes and home prices, highlighting the intense challenges faced by potential home buyers.

The annual Demographic International Housing Affordability report, which has been tracking house prices for 20 years, provides a comprehensive comparison of average incomes and average home prices. 

The findings are stark. Pandemic-driven demand for homes with outdoor spaces, restrictive land use policies aimed at curbing urban sprawl, and a surge of investors entering the market have collectively driven prices to unprecedented levels.

The report reveals that US cities, particularly on the West Coast and in Hawaii, dominate the list of the top 10 most unaffordable places. 

California’s San Jose, Los Angeles, San Francisco, and San Diego all feature prominently. 

These cities have long been associated with high living costs, but the recent trends have exacerbated the affordability crisis. 

Honolulu, the capital of Hawaii, also makes the list, ranking sixth among 94 major markets surveyed across eight countries.

Australia is the only other country besides the US to have multiple cities on the "impossibly unaffordable" list. Sydney, along with Melbourne in Victoria and Adelaide in South Australia, are highlighted for their severe housing affordability issues. 

These cities reflect a broader trend in Australia, where soaring property prices have outpaced wage growth, making home ownership increasingly elusive.

At the very top of the global leaderboard is Hong Kong, renowned for its compact living spaces and exorbitant rents. 

Despite being the only Chinese market included in the report, Hong Kong’s housing woes are well-documented. 

It boasts the lowest home ownership rate among the surveyed cities, at just 51%. 

This contrasts sharply with Singapore, where a strong governmental focus on public housing has pushed home ownership to over 89%.

Top 10 Impossibly Unaffordable Cities in the World in 2024
Rank	City	Country
1	Hong Kong	China
2	Sydney	Australia
3	Vancouver	Canada
4	San Jose	United States
5	Los Angeles	United States
6	Honolulu	United States
7	Melbourne	Australia
8	San Francisco / Adelaide	United States / Australia
9	San Diego	United States
10	Toronto	Canada

Interestingly, while Hong Kong remains the least affordable city globally, there is a glimmer of hope for potential home buyers. 

House prices in the city have dipped since the pandemic began in 2020, driven by the government’s stringent zero-Covid policy and the introduction of new national security laws, both of which have dampened the market. 

Nonetheless, Hong Kong's position at the top of the list underscores the persistent and profound challenges in its housing market.

The "impossibly unaffordable" designation paints a sobering picture of the housing market in these major cities. 

For residents and potential home buyers, the gap between income and housing costs continues to widen, making the dream of home ownership increasingly out of reach. 

As urban planners and policymakers grapple with these challenges, the hope is that future reports will reflect improved affordability through innovative solutions and strategic interventions.