Australia Ranks Second in Highest Housing Prices

The latest Demographia International Housing Affordability Survey revealed that Australia ranks second among the countries with the most expensive housing. Hong Kong is at the top spot.

The result comes as a surprise because Australia has experienced two consecutive years of falling house prices. Other countries in the list include Ireland, United Kingdom, New Zealand, and Canada.

The survey also revealed that Sydney ranks third among the most expensive housing markets while Melbourne is at the seventh spot. Other cities in the list include Vancouver in Canada, London in the UK, San Jose and San Francisco in California.

Detroit in the US is the most affordable housing market. Other cities that were considered affordable include Dublin, Ottawa-Gatineau, and Edmonton.

It was in the 1980s when Australia’s housing markets were considered affordable.

This is the ninth year that the Demographia International Housing Affordability Survey was conducted. It rates the housing affordability of major countries in the world and usually covers urban markets.

It measures affordability by identifying the median house price and dividing it with the average household gross annual income. The World Bank has recommended the measurement and is also used by the Harvard University Joint Center on Housing.

Mildura and Shepparton in Victoria were the least expensive housing markets in Australia.