Countries where it’s most affordable to buy property across the world and the US housing market has been revealed as the second most affordable.
The study by Compare the Market analyzed average property prices per square metre as well as, the average disposable household income in each country to calculate the cost per square metre as a percentage of annual income.
You can view the research in full here: https://www.comparethemarket.com.au/home-contents-insurance/features/global-cost-of-property/
The 10 most affordable countries to buy a house in
|
Rank |
Country |
Average Annual Disposable Household Income (USD) |
Average Property Price per m2 (USD) |
Property Price (per m2) to Income % |
|
1 |
Turkey |
$18,302 |
$736.12 |
4.0% |
|
2 |
United States |
$45,284 |
$2,845.82 |
6.3% |
|
3 |
Mexico |
$13,965 |
$984.63 |
7.1% |
|
4 |
South Africa |
$11,592 |
$866.27 |
7.5% |
|
5 |
Brazil |
$12,701 |
$1,151.71 |
9.1% |
|
6 |
Russia |
$17,831 |
$1,640.89 |
9.2% |
|
7 |
Latvia |
$16,275 |
$1,568.65 |
9.6% |
|
8 |
Greece |
$17,700 |
$1,713.34 |
9.7% |
|
9 |
Hungary |
$18,430 |
$1,846.47 |
10.0% |
|
10 |
Italy |
$26,588 |
$2,851.30 |
10.7% |
The most affordable country was Turkey. It has the lowest price per square metre, at US$736.12 and with an average household disposable income of US$18,302, the affordability ratio came to around 4.0%.
In second place for the most affordable country was the USA. Although the USA has a much higher property price of US$2,845.82 per square metre, the USA also has a higher average disposable income of US$45,284, meaning the affordability ratio came to 6.3%.
The third most affordable country was Mexico, with an affordability ratio of 7.1%. The average disposable income in Mexico is fairly low compared to other countries at an average of US$13,965, however, it also has some of the cheapest housing, averaging around US$984.63 per square metre.
The 10 least affordable countries to buy a house in
|
Rank |
Country |
Average Annual Disposable Household Income (USD) |
Average Property Price per m2 (USD) |
Property Price (per m2) to Income % |
|
1 |
South Korea |
$21,882 |
$12,989.34 |
59.4% |
|
2 |
Israel |
$24,863 |
$7,598.98 |
30.6% |
|
3 |
Luxembourg |
$39,264 |
$11,354.86 |
28.9% |
|
4 |
Switzerland |
$37,466 |
$10,575.06 |
28.2% |
|
5 |
Japan |
$29,798 |
$6,086.83 |
20.4% |
|
6 |
New Zealand |
$25,074 |
$4,461.47 |
17.8% |
|
7 |
Czech Republic |
$21,453 |
$3,698.74 |
17.2% |
|
8 |
United Kingdom |
$28,715 |
$4,877.81 |
17.0% |
|
9 |
France |
$31,304 |
$5,177.30 |
16.5% |
|
10 |
Denmark |
$29,606 |
$4,859.78 |
16.4% |
The least affordable country was South Korea. It has the highest price per square metre, at US$12,989.34, and with an average household disposable income of US$21,882, the affordability ratio came to around 59.4%.
In second place for the most affordable country was Israel. Although Israel has a lower property price of US$7,598.98 per square metre, it has an average disposable income of US$24,863, meaning the affordability ratio came to around 30.6%.
The third most affordable country was Luxembourg, with an affordability ratio of 28.9%, not much further behind Israel. The average disposable income in Luxembourg is fairly high compared to other countries at an average of US$39,264, alongside the property price averaging around US$11,354.86 per square metre.
Stephen Zeller, General Manager of Home and Contents Insurance at Compare the Market says:
“Trying to buy a property right now is harder than it's ever been, largely thanks to the pandemic in particular. Whilst property prices, costs of living, and property shortages are reaching new highs, wages and disposable income has struggled to keep up which means that for some, the property buying process may at times feel impossible.
“However, annual incomes and property prices vary a lot from one country to the next, and so it’s not bad news for everyone, especially for the countries that rank in the topmost affordable places to buy property.
“The same can also be said for countries where affordability has plunged. Buyers can still have some luck finding areas with accessible housing if they are willing to sacrifice on proximity to major metropolitan areas, as an example.”
You can find the full findings here.
