According to a new international study, Irish house prices have returned to a normal affordability, while Vancouver has overtaken Sydney as the least affordable, after Hong Kong.
The Annual Demographia International Housing Affordability Survey took a sample of 325 metropolitan areas around the globe. The survey based their findings on the median multiple, that is the average house price, divided by the gross annual average household income of specific urban markets, for the third quarter of the previous year.
Dublin and Limerick were the least affordable markets, while Waterford and Galway were rated as affordable. This is the first time that Ireland has no seriously unaffordable and unaffordable markets.
The survey states, “Historically, the Median Multiple has been remarkably similar in Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States… being [on] the outer bound of affordability”.
Hong Kong is the most severely unaffordable housing while Australia, with its abundant land supply, has the most pervasive housing affordability problem. Overall, the United States is affordable.