Sydney is the world's second least affordable housing market in the world, according to the 13th Annual Demographia International Housing Affordability Survey.
Melbourne is the sixth least affordable market, Adelaide is the 16th, Brisbane is the 18th, and even Perth is the 20th least affordable major housing market in the world, according to the survey.
The table below shows Demographia's 10 least affordable major housing markets in the world.
Source: Demographia International Housing Affordability Survey.
Outside of the major markets, 28 Australia cities are "severely unaffordable". The least affordable non-major markets in Australia are: Wingcaribbee, NSW; Tweed Head, NSW; The Gold Coast, Qld; and The Sunshine Coast, Qld.
The Demographia survey covers 406 metropolitan housing markets in Australia, Canada, China, Ireland, Japan, New Zealand, Singapore, the United Kingdom, and the United States. The latest results are for the third quarter of 2016.
The study looks at median house prices divided by household income.
Oliver Hartwich, executive director of The New Zealand Initiative, writes in the report's foreword that lack of supply is usually the culprit for declines in affordability. He says that as greater numbers of people are locked out of the housing market, some sectors of society become resentful, and these feelings are contributing to the wave of populism we are seeing around the world.
"High house prices are not a sign of city’s success but a sign of failure to deliver the housing that its citizens need," he wrote in the report.
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