International Study: Most Affordable Housing? Saginaw, MI. Least Affordable Housing? Hong Kong
1. Housing affordability in 2010 was little changed from previous years, with the most affordable housing markets being in the United States and Canada. The United Kingdom, Australia and New Zealand continue to experience pervasive unaffordability.
2. The most affordable major market was Atlanta, with a median house price of $129,400, and a Median Multiple of 2.3 (see chart above). Indianapolis ($120,200) and Rochester, N.Y. ($121,500) tied for 2nd most affordable major market, at a Median Multiple of 2.4. Cincinnati, Cleveland and Detroit tied for 4th most affordable, with a Median Multiple of 2.5, followed by Buffalo, Las Vegas and St. Louis at 2.6. Eleven other US major markets were rated affordable, including fast growing Dallas-Fort Worth, Houston, Jacksonville and Nashville.
3. All major markets in Australia and New Zealand, as well as Hong Kong were severely unaffordable. Hong Kong ranked as the least affordable major market (82nd), with a median multiple of 11.4 (see chart above). Sydney ranked second most unaffordable, at a Median Multiple of 9.6 (81st), having slipped behind last year’s most unaffordable market, Vancouver at 9.5 (which ranked 80th). Melbourne ranked 79th, with a Median Multiple of 9.0. Plymouth & Devon, San Francisco, London and Adelaide all had Median Multiples of more than 7.0.
Why does housing affordability matter?
"The cost of unaffordable housing extends to metropolitan area competitiveness. This is illustrated by an analysis of housing costs, using the Median Multiple, for more than 500 United States metropolitan areas. Between 2000 and 2009, the more unaffordable metropolitan areas lost 9.6 percent of their residents (4.7 million) by domestic migration to other areas, nearly 10 percent of their 2000 population. By contrast, the less expensive metropolitan areas gained 4.2 million domestic migrants (2.3 percent of their population). Of course the migration of households between metropolitan areas is the result of a number of factors. But the unprecedented housing affordability differences that have developed in US metropolitan areas are strongly associated with domestic migration trends. All things being equal, households will be drawn to less costly metropolitan areas and away from more costly metropolitan areas, as they seek to enhance their overall standard of living."
What cities in the U.S. have the most affordable housing? See chart below, Saginaw, Michigan is #1, Flint, Michigan is #2 and four out of the top six cities are in Michigan: