Owning a home is a lifelong goal for many, but in some countries, that dream remains out of reach due to skyrocketing property prices, stagnant wages, foreign investment, and restrictive regulations. While some nations struggle with supply shortages, others battle speculation-driven inflation that pushes homeownership beyond the grasp of average citizens. Here’s a look at ten countries where buying a home is nearly impossible.
1. Hong Kong – The World’s Most Expensive Housing Market
Hong Kong has consistently ranked as the most unaffordable place to buy a home. With limited land, high demand, and foreign investment, real estate prices have soared to astronomical levels. The average apartment price in Hong Kong is over 20 times the median household income, making it virtually impossible for the average worker to afford a home. Many residents are forced to live in cramped, subdivided “coffin homes.”
2. Switzerland – A Country of Renters
Despite its wealth, Switzerland has one of the lowest homeownership rates in Europe. Strict zoning laws, high taxes, and expensive construction costs make buying a home a challenge. In cities like Zurich and Geneva, home prices are sky-high, and renting is the norm. Additionally, Swiss mortgage rules require buyers to have a 20% down payment, making ownership unattainable for many.
3. South Korea – Skyrocketing Prices in Seoul
In South Korea, especially in Seoul, home prices have surged in recent years. The Jeonse rental system, which requires a massive lump-sum deposit, often makes homeownership unattainable for young buyers. Government cooling measures have had little impact, and real estate prices continue to climb, making it one of the toughest markets to enter.
4. New Zealand – Housing Crisis in Paradise
New Zealand’s housing crisis is fueled by a combination of foreign investment, limited land supply, and high construction costs. Auckland, the country’s largest city, has seen home prices rise significantly, leaving many locals unable to buy. Despite government efforts to restrict foreign buyers, affordability remains a serious issue.
5. Canada – A Market Driven by Investors
Major cities in Canada, such as Toronto and Vancouver, have become some of the most expensive real estate markets in the world. Foreign buyers, speculation, and limited supply have driven up prices, far outpacing wage growth. Even with recent government measures, including taxes on vacant properties and foreign ownership restrictions, homeownership remains elusive for many Canadians.
6. United Kingdom – London’s Homeownership Nightmare
London’s real estate market is notoriously expensive, with property prices far exceeding the average salary. The lack of affordable housing, combined with high demand from foreign investors, has made homeownership nearly impossible for many. In other parts of the UK, affordability is slightly better, but in London, many people are forced to rent for life.
7. Australia – Sydney and Melbourne’s Soaring Prices
Australia’s major cities, particularly Sydney and Melbourne, have some of the highest property prices in the world. A mix of foreign investment, low interest rates, and a housing supply shortage has caused real estate values to rise drastically. Wage growth has not kept pace, making it nearly impossible for young Australians to enter the market without significant financial assistance.
8. Singapore – Limited Land and High Prices
Singapore has one of the world’s most tightly controlled real estate markets due to its small land area and high population density. While the government provides public housing through the HDB (Housing and Development Board), private property is incredibly expensive. Foreigners face additional restrictions, and even locals struggle to afford homes outside the public housing sector.
9. United States – Unaffordable Major Cities
While the U.S. has more affordable housing options in rural areas, major cities like San Francisco, New York, and Los Angeles have some of the highest home prices in the world. A mix of tech booms, foreign investment, and housing shortages has driven prices to unaffordable levels. In cities like San Francisco, the median home price is over $1.3 million, putting homeownership out of reach for most residents.
10. Japan – Tokyo’s Land and Space Crisis
While Japan’s overall real estate market is relatively affordable compared to other countries on this list, Tokyo presents a unique challenge. High demand, strict zoning laws, and limited land make it difficult for locals to afford homes in the capital. Additionally, Japan’s aging population means many rural homes are abandoned, yet Tokyo’s property market remains highly competitive and expensive.