House Prices vs Income Across Countries
Housing affordability varies sharply across countries, and the gap is immediately visible when comparing price-to-income ratios. The higher the ratio, the more years of income are needed to buy a home.
The pattern is clear. A small group of countries sits far above the rest, where housing is significantly less affordable, while others remain relatively more accessible despite global price pressures.
Most Expensive Housing Markets
South Korea stands out with the highest ratio at 10.1. This means home prices are more than ten times the average income, placing extreme pressure on buyers.
Australia follows at 9.2, with Canada at 8.5. These countries form a clear high-cost group where affordability is stretched well beyond typical levels.
The Netherlands at 7.8 and Sweden at 7.2 also sit above the midpoint. These markets are expensive, though not as extreme as the top three.
More Affordable Markets
At the lower end, the United States shows a ratio of 4.5, making it one of the more affordable countries in this group.
Japan follows at 4.3, while Germany at 5.2 remains relatively stable compared to others.
These levels suggest housing is still costly, but not as disconnected from income as in higher-ranked countries.
The Middle Range
Several countries cluster between roughly 5.5 and 6.8, including Italy at 5.5, Spain at 6.0, France at 6.1, and the United Kingdom at 6.8.
This middle group reflects a balance where housing is becoming less affordable, but not yet at extreme levels.
Why These Differences Exist
Higher ratios often reflect strong housing demand combined with limited supply. Urban concentration, land constraints, and investment-driven markets push prices upward faster than incomes.
Lower ratios tend to appear in countries with more balanced supply or slower price growth. Policy differences, zoning regulations, and population trends also play a role.
Income growth is equally important. When wages stagnate while prices rise, affordability declines quickly.
What This Means for Buyers
A difference of several points in the ratio can determine whether homeownership feels achievable or out of reach.
In high-ratio countries, buyers may face longer saving periods, higher debt burdens, or delayed ownership. In lower-ratio markets, entry remains more realistic, though still challenging.
Remote work is beginning to influence this dynamic. Workers earning in higher-income economies may choose to live in relatively more affordable markets, easing pressure on household budgets.
The key takeaway is simple. Housing affordability is not just about price levels, but how those prices compare to income. That ratio tells the real story of access.
Dataset
Data Sources
Organization for Economic Co-operation and Development (OECD). (2024). Housing affordability: Price-to-income ratio. https://data.oecd.org/price/housing-prices.htm
OECD Affordable Housing Database. (2024). Price-to-income ratio indicators. https://www.oecd.org/housing/data/affordable-housing-database/
