How housing affordability varies across wages in OECD economies
Housing affordability differs widely even among high-income countries. The chart compares wages against house price-to-income ratios, showing how much income is needed to afford housing.
The main pattern is clear. Higher wages do not always guarantee better affordability. In some cases, people earn more but still face expensive housing relative to income.
The least affordable case stands out clearly
Mexico sits at the extreme end with about $20,000 / 10.5x. This means housing costs are more than ten times annual income, making it the least affordable among the group.
Japan also shows high pressure at $42,000 / 8.0x, despite being a developed economy. The United Kingdom follows with $52,000 / 7.5x, indicating that housing costs remain high relative to earnings.
These countries highlight a key point. Lower wages or high housing costs can both lead to affordability stress.
Higher wages do not always solve affordability
The United States records the highest wages at $75,000 / 5.5x, and it also shows one of the lowest price-to-income ratios. This places it among the more affordable countries in the chart.
The Netherlands and Canada follow with $65,000 / 5.8x and $60,000 / 6.0x. These countries combine relatively strong wages with moderate housing pressure.
Germany stands at $58,000 / 6.2x, showing a balanced position where housing remains somewhat manageable relative to income.
Mid-range countries show mixed outcomes
France and the United Kingdom illustrate how similar wage levels can lead to different affordability outcomes. France records $54,000 / 7.0x, while the UK reaches $52,000 / 7.5x.
Even small differences in housing costs can significantly affect affordability. This creates noticeable gaps between countries with otherwise comparable incomes.
Japan also sits in this middle range but leans toward higher pressure due to its 8.0x ratio.
Why affordability does not track wages directly
Housing affordability depends on both income and housing supply. Even if wages increase, limited housing availability or high demand can push prices higher.
Urban concentration, land constraints, and housing policies also shape these outcomes. Countries with tighter housing markets often show higher price-to-income ratios, regardless of wage levels.
This explains why some high-income economies still struggle with affordability.
What this means for workers and future trends
For workers, higher income alone does not guarantee access to affordable housing. Location and market conditions matter just as much as salary.
As remote work expands, some workers may respond by moving to areas with lower housing costs. This could gradually reshape demand across regions.
The key takeaway is simple. Affordability is not just about how much people earn, but how housing markets respond to that income.
Dataset
Data Sources
Organization for Economic Co-operation and Development (OECD). (2025).
Average annual wages (indicator).
https://www.oecd.org/en/data/indicators/average-annual-wages.html
Organization for Economic Co-operation and Development (OECD). (2025).
Housing prices: Price-to-income ratio (indicator).
https://www.oecd.org/en/data/indicators/housing-prices.html
