You’ve probably seen the headlines or, more likely, felt the punch to your bank account every first of the month. Housing is a mess. Honestly, calling it a "crisis" feels like an understatement when you're looking at a studio apartment in Vancouver that costs as much as a small villa did ten years ago. It’s wild.
We’re sitting here in 2026, and while everyone hoped things would "normalize" after the chaos of the early 2020s, the reality is a bit more stubborn. Some cities have basically become gated communities for the ultra-wealthy. We’re talking about a world where the median home price in certain spots is more than 14 times what the average family earns in a year.
That’s not just "expensive." That’s what experts like Wendell Cox call "impossibly unaffordable."
The Cities Where Your Salary Goes to Die
When we talk about global unaffordable housing markets, one name always sits at the top of the throne, and it isn't a crown anyone wants to wear.
Hong Kong.
It’s been the heavyweight champion of unaffordability for years. According to the 2025 Demographia International Housing Affordability report—which is basically the gold standard for tracking this stuff—Hong Kong’s median multiple hit 14.4.
Think about that for a second. If you didn't spend a single cent of your paycheck on food, taxes, or clothes, it would still take you over 14 years to buy a typical home there.
But it’s not just a Hong Kong thing. Australia is actually dominating the "most expensive" lists lately. Sydney is sitting at a 13.8 multiple. Adelaide and Melbourne aren’t far behind, with scores that make you wonder how anyone under 40 is supposed to move out of their parents' basement.
It’s kinda bleak.
In North America, Vancouver remains the outlier. It’s consistently the least affordable spot in Canada, with a multiple of 11.8. Down in the States, it’s the usual suspects: San Jose (12.1), Los Angeles (11.2), and Honolulu (10.8).
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Why Is This Still Happening?
You might think, "Wait, didn't interest rates go up to stop this?"
Well, yeah. Central banks tried to cool the jets by hiking rates, but it created a weird "lock-in" effect. People who bought homes years ago at 3% interest rates aren't moving. Why would they? If they sell, they’d have to buy a new place at 6% or 7%.
So, they stay put.
Inventory dries up.
Prices stay high because the few houses that do hit the market have twenty people fighting over them. It’s a supply-side chokehold that hasn't let go yet.
Breaking Down the "Median Multiple"
So, how do the experts actually measure this? They use something called the "median multiple."
It’s pretty simple: take the median house price and divide it by the median gross annual household income.
- Affordable: 3.0 or less (Basically extinct in major cities now)
- Moderately Unaffordable: 3.1 to 4.0
- Seriously Unaffordable: 4.1 to 5.0
- Severely Unaffordable: 5.1 and over
- Impossibly Unaffordable: 9.0 and over
Here is the kicker: In 2025, for the first time in over two decades of tracking, zero of the 95 major housing markets analyzed were actually considered "affordable."
Even the "cheap" places like Pittsburgh or Cleveland are technically "moderately unaffordable" now with multiples in the 3.2 to 3.5 range.
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The bar has moved.
The Stealth Drivers of the Crisis
It isn't just about "not enough houses." It's also about who is buying them.
Institutional investors and corporate landlords have changed the game. Research from Rutgers and other institutions has highlighted how non-individual investors now own more than half of the rental units in many U.S. markets. These guys are looking for returns, and they have the cash to outbid a young couple every single time.
Then you have the "missing middle."
For decades, we stopped building starter homes. In the 1970s, nearly 40% of new builds were entry-level. Now? It’s less than 10%. We’re building luxury condos and massive suburban mansions, but if you want a simple two-bedroom bungalow? Good luck.
You’re basically hunting for a unicorn.
The Role of "Urban Containment"
There’s also a lot of heated debate about zoning.
Places like the UK and California have these "greenbelts" or "urban growth boundaries." The idea is great—save the environment, stop sprawl—but the side effect is that they artificially limit the supply of land.
When you can’t build out, you have to build up.
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If the city doesn't let you build up because of "neighborhood character" or NIMBY (Not In My Backyard) protests, then the price of the existing land just sky-rockets. It’s basic math.
Is There Any Good News for 2026?
Actually, maybe.
Forecasters at First American and the National Association of Realtors (NAR) are seeing a "thaw" on the horizon.
Mortgage rates are expected to settle somewhere around 5.5% to 6.0% this year. That’s a far cry from the 3% we saw during the pandemic, but it’s a lot better than the 7.5% peaks that scared everyone off in 2024.
We're also seeing a weird phenomenon where new construction is actually becoming cheaper than existing homes in some markets.
Builders are desperate to move inventory, so they're offering "rate buydowns" (paying part of your interest for you) and price cuts. Meanwhile, the guy down the street with the 1950s fixer-upper is still holding out for a "2022 price."
Actionable Insights for the Current Market
If you're trying to navigate this mess, you have to stop thinking like it's 2019. The rules have changed.
- Look for New Build Incentives: Don't just browse Zillow for old houses. Check out new developments. Many builders are currently offering incentives that save you more than a price drop ever could.
- The "Median Multiple" Reality Check: If you’re moving, check the city’s multiple. If it’s over 9.0, you are entering an "impossibly unaffordable" zone. You might be better off renting and investing your cash elsewhere until the bubble thins out.
- Watch the "Lock-In" Fade: As more people are forced to move for jobs or family, that "golden handcuff" of low interest rates will eventually break. This increases inventory, which is the only thing that actually lowers prices long-term.
- Target "Moderately Unaffordable" Hubs: If you can work remotely, cities like Edmonton (Canada), Pittsburgh (USA), or Middlesbrough (UK) offer a quality of life that won't leave you "house poor."
The global housing market is a beast that isn't easily tamed. Policy shifts like the UN-Habitat’s 2026–2029 Strategic Plan aim to help, but these things take years to trickle down to your local street corner.
For now, the best move is to be patient, run the numbers on your specific "median multiple," and ignore the FOMO. The market is slowly shifting back toward buyers, but it's a marathon, not a sprint.
Check local inventory levels specifically for "days on market." When that number starts climbing over 60 days in your area, that’s your signal that the power is finally shifting back to you.