Most people dream of buying a house someday, but in some cities around the world it’s becoming more of a pipe dream. The ratio of median income to median home price is out of whack, and the only way for the average person to get a toehold in real estate is by winning the lottery or going into excessive debt. A 2015 survey of 378 cities in nine countries by Demographia has revealed the top ten major metropolitan markets around the world where buying a home is a big time budget buster. They say purchasing a house for 2.5 times your gross household income is reasonable. In one of these cities, the average dwelling costs 17 times the median household income! Granted, these are all beautiful, vibrant, sought-after urban centers with the jobs and lifestyle amenities people want. But they are becoming places where only the mega-wealthy or house-poor can live in. Here are the 10 most unaffordable cities where housing prices are insane.
10. Los Angeles, USA
Tinsel Town is a tempting place to live, with its warm weather, beachy lifestyle and big city offerings. However, you’d better have a movie star bank account if you want to buy a house here. With a median home price of $481,900 and a median household income of $60,000, LA’s Median Multiple (the median house price divided by gross annual median household income, a measurement used to assess housing affordability) is 8.0.