Australian cities have been listed on the list of 15 most affordable home purchases in the world.
Demographic International Housing Affordability Report 2025 released this week shows Sydney, Melbourne, Brisbane, Adelaide and Perth are the most expensive locations.
Sydney was named the second most affordable city overall, second only to Hong Kong.
Adelaide ranked sixth, Melbourne ranked ninth, Brisbane ranked 11th and Perth ranked 14th.
Although Perth was rated as “seriously unaffordable,” the other four capitals were classified as “unaffordable.”
“It is worth noting that these markets are at a lower price than widely recognized world cities such as New York, London or Chicago,” the report said.
The annual report released by the Chapman University Center for Demography and Policy compares the median house price with the median household income of 95 major housing markets in Australia, New Zealand, the United Kingdom, the United States, Canada, Canada, China, Ireland, Ireland and Singapore.
Report principal Wendell Cox said Sydney has been unable to maintain a housing market worldwide.
Sydney has become the second cheap city in the world, second only to Hong Kong
Sydney, Melbourne, Brisbane, Adelaide and Perth all debut among the world’s 15 lowest affordable cities
“Sydney has had the first, second or third affordable housing in any major market in 16 of the past 17 years,” he wrote.
“Even Australia’s smallest market, Adelaide endured an invaluable median multiple of 10.9, ranking 90th out of 95 markets.”
The report found that prices have soared since the 1990s, with middle-income home ownership once widespread declines in developed countries as prices soared.
Researchers want to understand why some markets are so hot.
“In high-income countries, middle-income home ownership was once widespread, with house prices consistent with income,” the report reads.
“However, since the 1990s, prices have soared, especially in markets managed by earlier urban containment strategies (e.g., San Francisco, Sydney, London), and now homes cost 9-15 times.”
Center Director Joel Kotkin attributes the trend to restrictive programs and land use policies.
“The demographic report shows that in the UK, California, Washington, Oregon, Colorado, New Zealand, Australia and most of Canada, where such policies dominate, at least for potential home buyers, the results are disastrous.”
The report states
Researchers point out that “urban containment” strategies, including green belts, zoning restrictions and growth boundaries, are unparalleled major drivers, especially when these policies limit housing expansion on the edge of the city.
“Almost all seriously unaffordable housing markets follow the urban containment model,” Mr Cox said.
“The resulting land scarcity will expand prices, especially near the boundaries of urban growth.”
The report found that in markets such as San Francisco, Sydney and London, the median median home prices reached 15 to 15 times the median household income.
Land value was identified as the most important cost in these areas, with prices soaring in areas that allowed development near previously restricted areas.
The researchers also question whether building high-density housing in existing urban areas actually improves affordability.
They warn that if such housing is expensive or unattractive to most middle-income earners, the basic problem will not be solved.
