(NewsNation) — Housing prices are hitting records in the U.S, so it might come as a surprise that the average real estate price in this country is still much more affordable for middle-class homebuyers than in many other major nations, according to a Demographia International Housing study.
The study examined middle-income housing affordability in 92 major housing markets in eight nations: Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom and the United States.
The most affordable market listed was Pittsburgh, with 2.7 as the “median multiple. A multiple of 3.0 and under is considered affordable, while 5.1 and above is considered “severely unaffordable.”
The “median multiple” is a price-to-income ratio, which is the median house price divided by the gross median household income (pre-tax), according to Demographia International.
Most affordable housing markets:
- Pittsburgh, PA
- Oklahoma City, OK
- Rochester, N.Y.
- Edmonton, Canada
- St. Louis, MO
“These are cities that really have not benefited from the COVID pandemic effect. People didn’t move to these cities when the pandemic hit, but I love the fact that the United States came in as one of the most affordable places that you can buy a home,” Uri Man, executive vice president with Land Tejas, said during an appearance Wednesday night on NewsNation’s “Banfield.”
“The reason being, most people forget, is we have this great amazing gift in the United States,” Man said. “It’s the 30-year fixed-rate mortgage, which makes it extremely affordable to buy a home.”
Man said that although Pittsburg is a “great city,” he doesn’t believe that it’s at the top of anyone’s list, regardless of affordability.
Hong Kong and Sydney ranked among the least affordable, according to Demographia International.
Least affordable housing market:
- Hong Kong, China
- Sydney, Australia
- Vancouver, Canada
- San Jose, California
- Melbourne, Australia
“I don’t think they’ll ever be really affordable. Those places are all constrained, in terms of inventory. It’s very difficult to get a new building approved and built in Vancouver or San Jose,” Man said. “And all of the left-wing tree huggers in San Jose, they don’t want to see any more development, and they’re still upset that their housing prices are going through the roof.”