Report reveals U.S. affordability outpaces other nations

In a recent report, “The 8th Annual Demographia International Housing Affordability Survey,” the authors look at housing affordability in 325 metropolitan markets in Australia, Canada, Hong Kong, Ireland, New Zealand, the United Kingdom and the United States.

The survey, compiled by Selma Hepp, research economist for the National Association of Realtors, showed that housing affordability is highest among U.S. markets. Following the U.S. are markets in Canada and Ireland. The United Kingdom, Australia and New Zealand rank as the least relatively affordable markets.

To measure affordability, the authors divided the median house price by gross annual median household income. This is just one of the measures of affordability. More elaborate measures may account for mortgage interest, for example.

Among 81 major metropolitan markets analyzed, 24 were found to be affordable markets, 20 moderately unaffordable major markets, 13 seriously unaffordable major markets and 24 severely unaffordable major markets. All of the affordable major markets were in the United States.