19 Most Unaffordable Cities in the World (8 Are In the United States)
Have you ever thought about leaving your country and staying somewhere else in the world? While it sounds like a thrilling adventure, the question is, can you even afford it?
The Demographia International Housing Affordability report calculates a city’s affordability using the price-to-income ratio, also called the median multiple. The data, gathered in the third quarter of 2023 from eight English-speaking nations, ranks cities based on their affordability.
You can live comfortably in many cities worldwide, but some places are notably more expensive than others. We’ve selected the most unaffordable places based on their median multiple, and these top the list.
1. Hong Kong (China)
Hong Kong gained a median multiple of 16.7 and is named the most unaffordable place in the world. A family of four needs $4,170 (HK$32,566) monthly to live a good life, not taking into account rent or mortgage.
Hong Kong is known for its overinflated real estate market, high tuition fees, and healthcare costs. Apart from basic accommodation, all supplies are imported from other countries, driving up their prices.
2. Sydney (Australia)
Sydney, Australia, with a median multiple of 13.8, is deemed impossibly unaffordable. To secure all your necessities, you need a salary ranging from $53,224 (80,000 AUD) to $59,877 (90,000 AUD).
One factor that increases the cost of living is the gap between the growing population and limited housing. Despite this, people continue to move to Sydney for better opportunities, which further adds to the imbalance.
3. Vancouver (Canada)
Vancouver in Canada, with a median multiple of 12.3, is incredibly unaffordable. To live comfortably, you need to earn over $1,126 to cover all living expenses, plus an additional $2,400-$3,200 for rent.
The city’s high cost of living is driven by limited housing availability, pushing home prices to over $1.2 million.
4. San Jose, California (United States)
San Jose, California has a medium multiple of 11.9 and is one of the most expensive cities in America to live in. Inflation in the city is notably high, which explains its high cost of living.
Property costs are 226% higher than the country average. On the other hand, food supplies are 8% more expensive than average, while utilities are 31% more expensive.
5. Los Angeles, California (United States)
Los Angeles, California, famously known as the “City of Angels,” ranks among the world’s most unaffordable cities with a median multiple of 10.9. To sustain yourself here, an average of $3,437 per month is recommended.
The high cost of living in Los Angeles springs from its popular entertainment industry, attracting many aspiring artists. Alongside living expenses, housing costs are also very high.
6. Honolulu, Hawaii (United States)
With a median multiple of 10.5, Honolulu in Hawaii is considered one of the most unaffordable places in the world. If you own a home and don’t have to pay rent or a mortgage, you need at least $1,460 to live a comfortable life. If you want to rent an apartment, add $1,800-$2,500 if you are okay living in a one-bedroom apartment.
Among others because of its limited housing options, Hawaii is considered one of the most expensive states in America due to high prices for groceries and utilities. It offers the option of living in a paradise setting.
7. Melbourne (Australia)
Melbourne, Victoria is one of the most unaffordable cities in the world, with a median multiple of 9.8. If you decide to live in this city, you need to earn at least $2,367 individually or $5,511 for a family of four monthly.
Melbourne is known for its excellent healthcare, education, and world-class transportation system. While you can enjoy these benefits, be prepared for the remote location and high cost of living.
8. San Francisco, California (United States)
San Francisco has a median multiple of 9.7, making it one of the most unaffordable cities to live in. Expect to spend 82.8% more than the national average cost of living in the United States.
As a tech-forward city, San Francisco attracts many people, but the available housing can’t keep up with the growing population. The city also has strict property development laws which make it challenging to build homes.
9. Adelaide (Australia)
With a median multiple of 9.7, Adelaide in South Australia is one of the most unaffordable places in the world. Not counting rent, you need at least $1,987 to live comfortably in the city. One good thing, though, is that its rent is 36.1% lower than Sydney’s prices.
While Adelaide seems more affordable compared to Sydney and Melbourne, it is still considered expensive globally. Commodities and utilities are reasonably priced, but housing costs drive up the overall cost of living.
10. San Diego, California (United States)
San Diego has a median multiple of 9.5, qualifying it as one of the most expensive cities in the world. The cost of living is, on average, 3% higher than in California and 42% higher than in America.
One of the major factors that contribute to San Diego’s high cost of living is housing. It is 116% higher than the national average. The steep property prices are due to the limited supply and high tax rates.
11. Toronto (Canada)
With a median multiple of 9.3, Toronto Canada is considered one of the world’s most expensive cities. The average housing cost in the city is over $1 million, which has significantly increased throughout the years.
The cost of utilities, including electricity, water, and even garbage disposal services, is one of the highest in the country. Besides housing, this is one of the most influential factors that contribute to the city’s high living cost.
12. Auckland (New Zealand)
New Zealand’s Auckland has a median multiple of 8.2 and is noted for being a very unaffordable place to live in. Since 2020, the cost of living increased to $3,500-$4,000 monthly per person.
One major contributor to the high living cost is housing. Migration rates to this country are high, which leads to an increased demand for property. This surge in demand results in higher housing and property prices.
13. Miami, Florida (United States)
Miami has a median multiple of 8.1, which makes it one of the most unaffordable cities in the U.S. An individual needs to earn at least $1,309 per month to keep up with the expenses, plus $2,000-$3,800 per month on rent. A family of four, on the other hand, needs to have an income of at least $4,779 excluding rent or mortgages.
With the influx of people going to Miami for greener pastures, the demand for property and houses has also increased. Property insurance and utilities costs are also at an all-time high.
14. Greater London (United Kingdom)
With a median multiple of 8.1, the United Kingdom’s Great London is a severely unaffordable city. The average house price in London is $676,291, driven by its status as a global economic hub.
High prices in London are due to labor growth which results in high labor costs. It is also a great destination for cultural and shopping experiences, making it an in-demand tourist spot.
15. Brisbane (Australia)
Brisbane in Australia garnered a median multiple of 8.1, which makes it one of the most expensive locations in the world. A family can comfortably live in Brisbane as long as their household income falls between $4,680 and $6,017 per month, considering housing costs and necessities.
While the cost of living may be expensive, Brisbane makes up for it with its friendly locals and stunning sites. It is also one of the most popular destinations for international students.
16. Bournemouth (United Kingdom)
With a median multiple of 7.5, Bournemouth, a premium coastal region in the United Kingdom, is considered one of the most expensive cities to live in. International students need around $1,265 per month, not including the tuition fees.
Bournemouth is popular for its stunning views and beach experiences. Many consider it a safe place to raise a family despite the high rental costs.
17. Dorset (United Kingdom)
Dorset in the United Kingdom has a median multiple of 7.5. To live comfortably in Dorset, you need to earn at least $744 every month. If you want to raise a family, you will need around $2,595.45 (£2,051.90) monthly.
In Dorset, you can enjoy sandy beaches and sea views, especially during the brisk morning. Its coastal location makes it a desirable place to live, which in turn drives up property prices.
18. New York (United States)
New York is a popular city and state in the United States but it is also one of the most unaffordable places you can call your home. With a median multiple of 7.0, it is expensive to live in New York, primarily due to high property costs and taxes.
To live comfortably in New York, you need to earn at least $4,130 per month. The rent control measures, while intended to help, often contribute to increasing rent prices, making it even more expensive to live in the city.
19. New Jersey (United States)
New Jersey has a median multiple of 7.0 and is considered one of the most expensive places in the world. The severely unaffordable state has a cost of living 11% higher than the country’s average. Housing is the major reason for the high cost of living; it’s 30% higher than the country average.
Besides housing, utilities and basic necessities are also higher than in other states. Utilities are 12% higher while commodities, including food and clothes, are 5% higher than the national average.
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