Texas Ranked as One of the Most Affordable Housing Markets in the World

            While the cost of  home ownership around the world is on the rise, housing in the United States remains some of the most affordable in the world, according to the 9th Annual Demographia International Housing Affordability Survey, released earlier this week.

            The survey covers 337 metropolitan markets in Australia, Canada, Hong Kong, Ireland, New Zealand, the United Kingdom and the United States.

            Housing affordability is determined by a formula called the “Median Multiple”: median house price divided by gross, before-tax, annual median household income. The Median Multiple is a commonly used measurement tool within the financial industry and by researchers.

             Historically, the median multiple has been similar in Australia, Canada, Ireland, New Zealand. the United Kingdom and the United States, the study notes. Median home prices in those countries having generally been from 2.0 to 3.0 times median household. 3.0 and under is consider affordable, while 5.1 is considered severely unaffordable.

            This trend remains in the many housing markets in the United States and Canada. However, the Median Multiple has escalated sharply in the past decade in Australia, Ireland, New Zealand, and the United Kingdom and even in some markets of Canada and the United States. The one thing these rising cost markets have in common is that land use has become more restrictive. Land use impacts affordability because less land for homes means the dirt is more expensive.

            In the United States, 100 markets included in the survey were below 3.0, while only 16 were over 5.1. Canada had 8 markets under 3.0 and 6 over 5.1. Australia, with the least affordable housing market, saw 30 markets over 5.1 and none in the affordable range.

            Overall, Evansville, Ind., was the most affordable market in the study with a median multiple of 1.5, while Hong Kong was the least affordable in the study at 13.1. In the United States, Honolulu was the least affordable at 9.3.

            In recent years, the Dallas - Fort Worth and Houston home markets have emerged as the fastest growing larger metropolitan areas, the survey noted. Both remain affordable, with a median multiple of 2.9 in Dallas-Fort Worth and 3.0 in Houston. The study credits this affordability to “liberal land use regulation” and demand driven by net domestic migration.

Texas’ Affordable Housing Markets*	Median Multiple
Amarillo	2.9
Beaumont	2.9
Dallas-Fort Worth	2.9
Houston	3.0
Longview	2.6
Lubbock	2.0

*As defined by the Annual Demographia International

Housing Affordability Survey

            If you're thinking of moving outside the United States, go north to Canada. New Brunswick or Moncton, New Brunswick. Both communities scored 2.3 If you're looking to get off the continent, head to Waterford Ireland, which also scored 2.3.

Whether you’re thinking about moving to the other side of town or the other side of the planet, I can help. Coldwell Banker Apex is a global company with Coldwell Banker offices in 51 countries. We can help you, your friends and family anywhere in the world. Give me a shout!