The world’s least affordable housing market

The world’s least affordable housing market

The world’s least affordable housing market
It’s not San Diego or Los Angeles or even Beverly Hills. When it comes to the most expensive housing market in the world, there is one place that dwarfs the affordability issues in California: Hong Kong. The island hub of Asia has been ranked as the least affordable housing market in the world according to a new report from Liber Research Community.

Because home prices in Hong Kong are so expensive, a significant portion of the population, 1 in 8 homebuyers, are resorting to buying tiny homes. So-called nano apartments, these dwellings of often less than 260 square feet and account for 13 percent of all multi-unit homes sold in 2019. Despite being not much larger than a two-car garage, these micro living quarters can fetch more than HK$5 million or $645,000.

Put in to perspective, the same amount of money can get you a three-bedroom single-family home in San Diego.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.