Are you planning on moving in 2018? Be aware that you do not move in these 12 most expensive cities in 2018. They might squeeze you dry before you even realize it. A major survey, namely 14th Annual Demographia International Housing Affordability Survey, that took into consideration 300 major population hubs came up with the top 12 most expensive cities to live in, this year.
What they did is analyse 293 metropolitan housing markets from nine countries from the summer of 2017 and found 26 completely unaffordable locations. The nine markets they analysed are based in Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, Singapore, the UK and the US. The worst prices are in the USA, Australia, New Zealand, Canada and China.
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Their survey uses the method of the “median multiple” and basically divides an area’s Median house price by the median household income. This way you get a Median Multiple value that will tell you which are the most unaffordable housing in the world.
1. Tauranga, Western Bay of Plenty, New Zealand — the average home costs is 8.9 times the average income
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2. Salinas, Monterey, California, USA — Only 150,000 people live here, but the median multiple is 9.1
Image source: EQRoy / Shutterstock
3. San Francisco, California, USA — San Francisco has a median multiple of 9.1, just like Salinas, making it one of the most expensive cities to live in this year.
4. Honolulu, Hawaii, USA — The beachy Hawaiian capital’s median multiple is a little bit higher than San Francisco, at 9.2
5. Los Angeles, California, USA — With a median multiple of 9.4, LA is the second least affordable city in the US
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6. Santa Barbara, California, USA — The fourth — but not the last — Californian city to reach the top 10, it has a median multiple of 9.4
Image source: iStock / Dima_Rogozhin
7. Melbourne, Australia — In 2001, it had a median multiple of 6.3, but since then the prices have increased and now, Melbourne has a median multiple of 9.9
Image source: Lenny K Photography/Flickr
8. San Jose, California, USA — The least affordable housing market in the San Francisco Bay Area, San Jose has a median multiple of 10.3
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9. Santa Cruz, California, USA —and the award for the least affordable housing market in the USA goes to Santa Cruz, of course. Located in the Bay Area, the median multiple here is 10.4
Image source: Dale Cruse/Flickr
10. Vancouver, Canada — This is more expensive than USA. It’s got a median multiple of 12.6, but it wasn’t always like this. In 2004, it was at just 5.3
11. Sydney, Australia — The country’s least affordable market, Sydney has a median multiple of 12.9. In 2001, the rate was just 6.3 The UBS Global Real Estate Bubble Index rates Sydney as having the world’s fourth worst housing bubble risk (tied with Vancouver)
Image source: Simon Rae on Unsplash
12. Hong Kong, China — The least affordable housing for the eighth straight year with a median multiple of 19.4. Good job, you, Hong Kong.
Image source: Shutterstock/cozyta
We just hope you’re not planning on moving to any of these cities in the near future, if you hold your income dear.