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Housing is 'impossibly unaffordable' in these US cities

The story at a glance

  • A new study has revealed that four California cities, led by San Jose, are among the 10 least affordable cities for housing.

  • Honolulu was also included in the top 10 least affordable housing markets.

  • Meanwhile, Pittsburgh, Rochester and St. Louis were identified as the cheapest large cities in the world to live in, according to the study.

(News Nation) — Five U.S. cities are Regarding housingA new study has revealed that these markets are among the most expensive in the world.

Researcher at Chapman University and the Frontier Public Policy Centre in Canada Analysis of 94 major cities The study was conducted in eight countries and determined that San Jose, California, is the least affordable housing market in the United States. The Silicon Valley metropolitan area was the fourth least affordable area in the English-speaking world.

In fact, four of the top 10 least affordable housing markets on the list are in California: Los Angeles (No. 5), San Francisco (No. 8), and San Diego (No. 10). The only city outside of California to rank high is Honolulu, at No. 6.

“While restrictive housing policies may be viewed as progressive, from a societal perspective their effects may be seen as regressive,” Joel Kotkin, director of Chapman University’s Center for Demography and Policy, said in the report.

The rankings are based on each metro area’s price-to-income ratio, or the median home price divided by the median household income.

The report said that housing costs and income disparities have grown since the pandemic, creating a cost-of-living crisis for many American families.

“For decades, home prices have generally risen at roughly the same rate as incomes and homeownership has become more widespread,” said study author Wendell Cox. “But housing costs have far outpaced income growth, making homes less affordable in high-income countries.”

As for what is causing the crisis, the report blames land use policies that “artificially limit housing supply” and inflate land prices.

a Separate Zillow report A study released this week puts the U.S. housing shortage at 4.5 million homes, which is one of the reasons home prices continue to soar. A record high Mortgage interest rates remain high.

Despite these issues, Chapman’s study also contained some good news for Americans: The researchers found that nine of the 10 most affordable cities are in the United States.

Of nearly 100 cities analyzed, Pittsburgh had the most affordable housing market, followed by Rochester and St. Louis. Cleveland, Buffalo and Detroit also ranked highly for affordability.

The three least affordable markets were all outside the US: Hong Kong, China; Sydney, Australia; and Vancouver, Canada.

According to the study, the major cities with the cheapest cost of living in the world are:

  1. Hong Kong, China
  2. Sydney, New South Wales (Australia)
  3. Vancouver, British Columbia (Canada)
  4. San Jose, California (USA))
  5. Los Angeles, California (USA))
  6. Honolulu, Hawaii (USA))
  7. Melbourne, Victoria (Australia)
  8. San Francisco, California (USA)
  9. Adelaide, South Australia (Australia)
  10. San Diego, California (USA)

According to the study, the major cities with the cheapest cost of living in the world are:

  1. Pittsburgh, Pennsylvania (USA)
  2. Rochester, New York (USA)
  3. St. Louis, Missouri (USA)
  4. Cleveland, Ohio (USA)
  5. Edmonton, Alberta (Canada)
  6. Buffalo, New York (USA)
  7. Detroit, Michigan (USA)
  8. Oklahoma City, Oklahoma (USA)
  9. Cincinnati, Ohio (USA)
  10. Louisville, Kentucky (USA)

The report also listed 17 “highly unaffordable” housing markets in the U.S., one step below the “impossibly unaffordable” category. Perhaps unsurprisingly, many of these cities are located on the West Coast, such as Seattle and Portland, and in California regions like Riverside-San Bernardino, Sacramento, and Fresno.

On the East Coast, those markets include New York, Boston and Providence, Rhode Island. Further south, Las Vegas, Phoenix and Tucson make the list. In the South, there are three “extremely unaffordable” markets in Florida: Miami, Orlando and Tampa.

Meanwhile, the Mountain and Midwest regions, including Denver, Colorado; Salt Lake City, Utah; and Milwaukee, Wisconsin, had the fewest markets in this category.

Nexstar’s Ashleigh Jackson contributed to this report.