Considering buying a house? These cities in the USA are among the most expensive in the world

Most expensive cities in the world

Over the past two decades, housing affordability has significantly declined in many countries, including the United States. A recent report on the world's most expensive cities categorizes several major cities as "impossibly prohibitive," reflecting widespread sentiment among potential buyers.

Among the world's priciest cities, those on the US West Coast and Hawaii dominate the top spots of unaffordability lists, according to the annual Demographia International Housing Affordability report. For instance, San Jose, Los Angeles, San Francisco, and San Diego rank among the most expensive cities both in the country and globally. Honolulu, Hawaii's capital, also stands out in the overall global market analysis.

Additionally, Australian cities like Sydney, Melbourne, and Adelaide top the international list of "impossibly prohibitive" places. Hong Kong is another extremely costly city due to its expensive housing market, though prices have shown some recent decline.

The report attributes the price escalation to restrictive land-use policies and increased demand driven by factors such as remote work during the pandemic. This situation has led to intense competition for homes with more outdoor space outside urban centers.

To counteract this trend, some experts advocate emulating successful policies seen in New Zealand, where more land has been released for housing development. This approach has been highlighted as a model to enhance housing affordability in other regions, including Canada.

In summary, the report underscores how urban policies and market dynamics have contributed to making homeownership increasingly unaffordable in numerous global cities, with significant implications for the middle class and prospective homebuyers.