Canada has one of the least affordable housing markets in the world: study

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Canada has one of the least affordable housing markets in the world, a new study has found.

The World Housing Market Index, created by Money.co.uk, scored 40 countries on factors including price per square metre (USD), average net income, and annual price growth.

To determine where the world’s hottest, and coolest, property markets are located, each country received a score out of 100.

With an affordability ratio of 14%, Canada’s housing market was deemed the eighth least affordable in the world.

The average home price per square meter (about 10.7 feet) was USD $4,959, the fifth most expensive on the list. Canada’s average net income was also amongst the highest, at $34,884, but the homeownership rate of 68.6% paled in comparison to other countries.

Overall, Canada earned a score of 54.6 out of 100, putting it in 21st place on the index.

The United States’ housing market was deemed the most affordable in the world, due in part to the country’s high average income. With an affordability ratio of 4% and a total score of 75.8, the US nabbed sixth place on the index.

High demand for property, soaring construction costs, and dwindling land made Japan’s housing market the least affordable on the list. The country had an affordability ratio of 23% and placed 39th on the index.

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According to the World Housing Market Index, the hottest housing market can be found in Turkey, which earned a total score of 84.9 due to its high price growth and affordable properties. Turkey also had the second most affordable housing market, with a ratio of 5%.

The index determined that Switzerland has the coolest housing market, earning an overall score of 26.6. The country was also the fifth least affordable, with a ratio of 16.8%.

The world’s least affordable housing markets

money.co.uk