Newcastle West in lovely Limerick, the home of the most affordable city in the world.Tourism Ireland

A new survey names Limerick city the most affordable place in the world to buy a home, closely followed by Waterford city in joint second place.

The 12th Annual Demographia International Housing Affordability Survey placed the Irish cities in the top two spots out of 367 cities throughout nine countries by measuring the city’s mean household income against median house prices.

In Limerick, a median household income lies at $56,138 (€51,200) while median house prices are currently $101,750 (€92,800). This means that a typical person in the city will have to spend just 1.8 times their income if investing in a home.

Waterford, which came in joint second place alongside Decatur, Illinois; Topeka, Kansas; and Elmira, New York, sees the average person also spending just 2.1 times their income on a home. Median income in the city is currently $52,300 (€47,700) while their median house price lies at $109,645 (€100,000).

Read more: Live in Ireland on the cheap by becoming a property guardian.

On the higher end of the scale but a beautiful steal none the less. Currently on sale for $425,059 in Corbally, Limerick City.

On the higher end of the scale but a beautiful steal none the less. Currently on sale for $425,059 in Corbally, Limerick City.

Ireland as a whole fared well in the housing affordability survey although the United States was deemed to have the most affordable major metropolitan markets with 75 affordable cities.

Ireland was the most affordable of the nine countries surveyed, however, coming in with a median income multiple of 2.8 in order to purchase a home. This is the third year in a row that Ireland has topped the housing affordability rating and between 2004 and 2015, Ireland has had no severely unaffordable major metropolitan markets.

Read more: Five cheapest places to purchase property in Ireland.

A two-bedroom in Mill View Terrace, Limerick City, for $107,354. Image: Daft.ie.

A two-bedroom in Mill View Terrace, Limerick City, for $107,354. Image: Daft.ie.

A negative for Ireland’s rating came in the form of capital city Dublin, however, which ranked much further down the list.

Lying in the middle third in 128th place, the typical person would need 4.5 times their income to purchase a home in Dublin, way above the 3.5 income multiple introduced by the Central Bank in Ireland last year as a requirement for acquiring a mortgage.

Based on figures from the Central Statistics Office in Ireland, Dublin’s average house price is $288,366 (€263,000) with a median household income of $64,690 (€59,000).

This makes Dublin a “seriously unaffordable area,” ranking it with the likes of Las Vegas and Tokyo.Cork was the only other city in Ireland not rated as “affordable.”

Going for $291,001 in Greenpark, Limerick City. Image: Daft.ie.

Going for $291,001 in Greenpark, Limerick City. Image: Daft.ie.

Despite Dublin’s disappointing ranking, the survey till spells good news for the increasing number of Americans hoping to purchase property in Ireland.

Almost one in six overseas inquiries about Irish property now comes from the US, a percentage buoyed by the current strong dollar. A survey by the Real Estate Alliance (REA) recently showed that inquires from the US increased from almost zero to 16 percent in 2015.

The Irish-based REA will be hosting an exhibition in New York this March featuring thousands of Irish properties with the hope of matching these inquiries with an new Irish home.

Read more: Irish property fair for New York as US buyer numbers soar.

In The Gardens, Pennywell, Limerick City. Price: $147,135. Image credit: Daft.ie.

In The Gardens, Pennywell, Limerick City. Price: $147,135. Image credit: Daft.ie.

This year’s affordability survey placed Hong Kong at the bottom of the pile as the most unaffordable city in the world in which to buy a home. Nineteen times the median income is typically needed there with the median house price currently placed at a staggering $5.6m.

In second place as the least affordable city came Sydney, Australia, requiring 12.2 times the median income ($84,600) to purchase a home, followed by Vancouver (10.8 times) and San Jose, California (9.7 times).

The survey was completed by Demographia, rating middle-income housing affordability in Australia, Canada, China (Hong Kong), Ireland, Japan, New Zealand, Singapore, United Kingdom, United States.

At the lower end of the scale, $38,146 in Weston Garden, Rosbrien in Limerick City. Image: Daft.ie.

At the lower end of the scale, $38,146 in Weston Garden, Rosbrien in Limerick City. Image: Daft.ie.