Hong Kong: Where Dreams Come in Coffin-Sized Packages
Hong Kong claims the dubious honor of being the world’s least affordable housing market, where the median house or apartment price is 16.7 times as high as the median annual gross household income. The territory’s residential property price index has fallen for multiple consecutive quarters through 2024, yet prices remain astronomically high. Despite decades of government intervention, Hong Kong continues to suffer a chronic housing shortage that has persisted for over two decades.
The situation has become so dire that many residents live in notorious “coffin homes” while waiting years for public housing. The government recently unveiled a HK$26.4 billion light housing project to build 30,000 temporary apartments over five years, giving people an option to move out of cramped quarters. However, even these modest measures face public criticism as band-aid solutions to a systemic crisis.
Australia: The Lucky Country’s Unlucky Housing Market
Between 2002 and 2024, Australia’s house price-to-income ratio almost doubled, with the average house now costing nearly nine times the average household income, while rent has more than doubled over the same period. Sydney ranks as the second-least affordable market globally with a median price-to-income ratio of 13.8, requiring households to earn about 280,000 Australian dollars annually to afford the median house price of 1.4 million Australian dollars.
A record-low 22% of Australians were satisfied with their housing situation in 2024, with a record-high 76% expressing dissatisfaction. The crisis stems from multiple factors including historic underinvestment in public housing, massive immigration surges, and construction delays. Australia imported one million net overseas migrants in just two years, overwhelming the housing supply and creating crises that will take years to repair.
Canada: The Great White North’s Housing Nightmare
Bloomberg Economics ranked Canada as having the second-largest housing bubble across the OECD in 2021, with Toronto scoring highest globally in Swiss bank UBS’ real estate bubble index in 2022. Canadian wages have risen only 17% while home prices surged 76% from $417,000 in 2015 to around $698,000 in December 2024, making homes increasingly out of reach for ordinary Canadians.
The crisis reached such extreme levels that the government implemented dramatic policy reversals. Permanent migration targets fell from 485,000 in 2024 to 395,000 in 2025, with caps set for temporary residents, meaning nearly 450,000 temporary residents must leave Canada over the next two years. Canada’s economy has become heavily dependent on real estate, accounting for over 20% of GDP in 2023, creating a high risk if investor sentiment changes.
New Zealand: Middle-earth’s Sky-High Prices
The nation has become so concerned about foreign investment driving up prices that it took dramatic action. New Zealand passed a law preventing foreigners from buying some residential properties in 2018.
The housing crisis in New Zealand reflects broader issues affecting developed nations, where immigration and limited supply have created perfect storms of unaffordability. Residents find themselves competing not just with domestic buyers but with international investors seeking property havens. The government’s foreign buyer ban represents recognition that local housing markets had become playgrounds for overseas wealth rather than homes for citizens.
United Kingdom: Where Dreams Meet Harsh Reality
In the UK, housing affordability plunged dramatically, with the affordability index falling from 105 in 2021 to the low 70s in 2024. Mortgage approvals for house purchases fell below 40,000 in January 2023, down from a peak of 108,000 in November 2020. The nation faces a fundamental mismatch between housing supply and demand that shows no signs of quick resolution.
The Labour Party has promised a “housing revolution” by constructing 370,000 new homes annually, but affordability remains persistent as property prices have increased faster than salaries, with plans to rebuild inner-city areas still in early stages. Rising mortgage rates and construction costs continue to squeeze both buyers and builders, creating a vicious cycle of reduced supply and increased prices.
United States: The American Dream Deferred
In the world’s largest economy, housing affordability plunged from about 150 in 2021 to the mid-80s by 2024. Six American cities rank in the top 10 most unaffordable housing markets globally: Vancouver, San Jose, Los Angeles, Honolulu, San Francisco, and San Diego, with home prices reaching 9-12 times annual incomes, making homeownership nearly impossible for middle-class families.
The crisis affects different regions differently, with coastal cities bearing the worst burden while some inland areas remain relatively affordable. However, the overall trend shows deteriorating conditions nationwide. The affordability crunch reflects higher borrowing costs since central banks raised interest rates to counter inflation, creating additional barriers for potential homebuyers already struggling with elevated prices.
Germany: Europe’s Economic Powerhouse Stumbles
Germany experienced significant declines in housing affordability, joining countries like Austria, Canada, and Portugal in seeing dramatic deteriorations in recent years. Established housing markets, including Germany saw house prices decline in early 2024, while mortgage interest rates continued increasing until Q4 2023 before showing signs of easing.
Germany’s housing crisis is particularly striking given its historically stable property market and strong social housing tradition. Rising construction costs, regulatory challenges, and increased demand from both domestic and international buyers have combined to create affordability pressures that were uncommon in previous decades. The nation’s experience demonstrates that even countries with robust social safety nets aren’t immune to global housing trends.
Portugal: Tourism Paradise, Local Housing Hell
Portugal faces housing shortages and unaffordability across Europe, with new rent controls and caps on rent increases implemented, while the government is committed to constructing 59,000 new houses by 2030, including local initiatives in Cascais, Lisbon, making homes available to teachers. The nation’s housing crisis reflects the tension between tourism-driven economic growth and local housing needs.
Portugal’s situation illustrates how tourism and investment visa programs can inadvertently price out residents. Popular cities like Lisbon and Porto have seen dramatic rent increases as properties convert from long-term rentals to short-term tourist accommodations. Portugal has a program for “non-habitual residents” who are taxed at lower rates, but such programs have raised concerns about facilitating money laundering and pricing out locals.
Spain: Where Rent Controls Can’t Keep Pace
Spain is plagued by housing shortages and unaffordability, implementing new rent controls and laws capping rent increases, yet the crisis persists across the country. Major cities like Madrid and Barcelona face particularly acute challenges as tourism, international investment, and limited new construction collide to create perfect storms of unaffordability.
The Spanish government’s response demonstrates the difficulty of addressing housing crises through regulatory measures alone. Despite rent control efforts, demand continues to outpace supply, creating black market conditions and reduced investment in new rental properties. Spain announced in April 2024 that it would wind down its investment visa program amid concerns about housing pressures, showing recognition that some policies designed to attract foreign investment may have unintended consequences for local housing markets.
Conclusion: A Global Crisis Requiring Global Solutions
The housing affordability crisis spans continents and economic systems, affecting both developed and developing nations. On average across countries, housing is less affordable today than during the house price bubble that preceded the 2007-08 global financial crisis, putting housing at the top of households’ list of pressing issues ahead of healthcare and education.
These nine countries represent different approaches to the same fundamental problem: housing has become a commodity for investment rather than a basic human need. From Hong Kong’s coffin homes to Australia’s record dissatisfaction rates, the pattern is clear – homeownership has shifted from an achievable goal to an impossible dream for vast segments of the population. What strikes you most about this global housing crisis? Tell us in the comments.