Buying a House is not a dream. Just choose the correct country.

Nowadays a lot of people don’t have their own house. And the main reason is they don’t have enough savings to afford such a luxury purchase. But the situation is different in different countries. For example the size of house in China and USA will be completely different. We are looking for the houses that an average person can eventually buy. Generally, cost of the house has to be 30-35% of the gross income of the householders in order to be affordable. The size of an average house also differs from country to country.

            We can calculate the affordability standard by;    


Here you can see how we measuring the rating between affordable and unaffordable housing:

Severely Unaffordable                                 5.1 & Over

Seriously Unaffordable                                4.1 to 5.0

Moderately Unaffordable                             3.1 to 4.0

Affordable                                                    3.0 & Under

Let’s look some developed countries measurements;

USA

Not a surprise that USA is mostly considered as an affordable market. Housing affordability rating gives USA 3.4. As soon as USA is such a big country there are some cities like San Francisco (9.2), Los Angeles (7.7), New York (6.2) etc.

But there are also places like Pittsburg (2.3), Detroit (2.5) etc. where to buy house is achievable goal.

Canada

Canada seems like unaffordable with the rating of 4.5. The most expensive are British Columbia (6.9), Kelowna (5.9). But of course in small towns you can find rather cheap houses with the rating of 2.5.

Australia

This country has really expensive housing with the rating of 6.3. The most expensive are Sydney (9.0) and Melbourne (8.4). And what is interesting that there are no affordable cities for buying houses. The rating will start from 4.5

UK

United Kingdom gets (4.7), which means seriously unaffordable. London (7.3) the least affordable and Falkirk (3.5) is the cheapest.

Japan

Average Japanese House

Japan gets (4.4), but the the prices of houses are falling comparing to other years. For example Tokyo has population about 13 million people and there are 8.3 million apartments. And they continue to built more. So comparing to other metropolises, Tokyo is doing quite good.

Even though most of the countries sounds like unaffordable still people can manage it. If we compare it with developing countries like Ukraine you can see that to buy a house there in Ukraine is much more complicated than developed countries. In Ukraine an average flat of 75 meter square would cost about $70 000, but the average month salary is about $300 per month. That means that an average person in order to buy house should save about 30 years. This marked it as completely unaffordable.

So you can see that housing affordability is an important component of determining living standard. Which in developed countries is high comparing to developing countries. After all, what do you think? Are you in the right place? Can you afford a house? Make your own calculation.