Homeownership is becoming increasingly elusive, especially in major urban centers where even dual-income households struggle to keep up with the rising costs. A recent international study highlights the stark reality that the United States houses the four most unaffordable real estate markets globally, with California’s coastal cities prominently leading the charge.

This comprehensive research assessed 151 cities worldwide, taking into account average income levels, typical home prices, mortgage expenses, and down payments. The findings reveal a sobering truth: in certain high-demand U.S. regions, even two average earners cannot feasibly purchase a standard home.

San Jose emerges as the most challenging city for prospective homeowners, holding the title of the world’s least affordable housing market. Here, an average worker can only manage to afford roughly 27.3% of a typical home’s cost. Even couples pooling their earnings find themselves significantly short of meeting the usual asking prices.

Trailing closely is Los Angeles, where individuals earning an average wage can afford just 28.2% of an average home. This data underscores the mounting financial pressure faced by residents in these bustling coastal cities.

The average worker there could afford only about a quarter – 27.3 percent – of a typical property. Even a couple combining two average salaries would still fall well short of the asking price.

Los Angeles follows close behind – where single earners can afford 28.2 percent of the average home.

Long Beach and San Diego completed California’s grip on the top four. In the latter, at least, one person could just about afford a third of a home.

Across these cities, strong wages have simply not kept pace with soaring home prices – leaving many middle-income earners priced out. 

San Jose ranks as the least affordable city in the world to buy a home. The average worker there could afford only about a quarter – 27.3 percent – of a typical property 

New York also appears in the global top 10 at eighth place, with Miami and San Francisco just behind, meaning seven US cities feature among the world’s most unaffordable housing markets. 

Surprisingly, London, which is often considered one of the world’s most expensive cities to live in, ranked 18th in the study, sandwiched between Boston in the US (17th) and Oakland, California (19th).  

Outside the US, Vancouver ranks fifth overall and remains Canada’s least affordable city. 

Single buyers there can afford just 34.9 percent of an average home.

Toronto, Mississauga and Brampton also make the top 20 at 12th, 13th and 15th respectively, highlighting how affordability pressures extend across major Canadian metros.

In Europe, Paris leads the rankings as the continent’s least affordable city. 

A single resident earning the average wage can afford just over one third of a typical Parisian property. 

Porto and Lisbon follow close behind, reflecting how rising tourism and foreign investment have pushed prices up in these previously affordable enclaves.

Los Angeles follows close behind – where single earners can afford 28.2 percent of the average home 

At the other end of the scale, Detroit, Michigan, ranks as the most affordable city in the world to buy a home

Southern European cities including Madrid and Barcelona round out the top 20, showing that affordability pressures are no longer confined to traditional ‘global superstar’ cities alone.

Commenting on the findings, Remitly marketing director Ryan Riley said: ‘Buying a home is a major life goal for many people, but our findings show that in many major cities across the globe this has slipped out of reach for average earners.’ 

While much of the global focus is on cities where buyers are being priced out, the analysis also highlights a very different reality at the other end of the housing spectrum. 

In several cities, average earnings still stretch far enough not just to buy a home, but to comfortably exceed the typical property price.

Detroit, Michigan, ranks as the most affordable city in the world to buy a home. 

A single average earner can afford 240.3 percent of the typical property price, while couples combining two average salaries could afford an extraordinary 480.5 percent.

In second place is Catania, Sicily, where even single earners can buy a home without combining incomes. 

In Europe, Paris leads the rankings as the continent’s least affordable city. A single resident earning the average wage can afford only 35.6 percent of a typical Parisian property, while even couples reach just 71.2 percent

In second place on the affordability scale is Catania, Sicily, where even single earners can buy a home without combining incomes

In many of the world’s most desirable locations, house prices have risen far faster than wages, pushing homeownership further out of reach

Interestingly, Germany claims six of the world’s top 10 most affordable cities.

In Duisburg, Wuppertal, Essen, Dortmund, Bochum and Bremen single buyers are able to afford between 165.6 percent and 199.4 percent of the average property. 

The figures underline how dramatically property prices in these city differ from those on America’s cash rich west coast.

Southern Europe also features prominently among the world’s most affordable markets. 

Catania and Palermo in Italy rank second and sixth respectively, with single buyers able to afford 210.1 percent and 183 percent of the average home. 

Cities such as Genoa also appear in the top 10, reflecting how lower property prices in parts of Italy continue to offer realistic homeownership opportunities.

Remitly spokesperson Riley concluded: ‘With property costs varying so significantly from city to city, it’s understandable that this will influence people’s decisions on where to live and work, particularly those with families or looking to start one.’