Dive Brief:
- The Wealth Report 2016, published by real estate firms Knight Frank and Douglas Elliman, found that Monaco is the world’s most expensive residential real estate market on a square-foot basis, where $1 million will buy someone approximately 183 square feet of residential space, according to National Mortgage Professional.
- The report found that $1 million will get a little more space in Hong Kong (215 square feet) and London (236 square feet), the second and third most expensive markets in the world, respectively.
- In the U.S., the report found that New York City is the most expensive housing market, with $1 million buying 290 square feet.
Dive Insight:
While New York has long been known as a pricey market, the report predicts that other U.S. cities might soon catch up. The Wealth Report said San Francisco saw a huge spike of 11% in housing prices last year, followed by Miami (6%) and Los Angeles (5%). New York, however, only saw a 2% increase.
According to a January survey by public policy firm Demographia, Hong Kong had the least affordable housing in the world — 19 times the median annual household income. Sydney was number two, with housing at 12.2 times median household income, and number three was Vancouver, British Columbia, at 10.8 times. In the U.S., Demographia found the two least affordable markets in the U.S. were San Jose, CA, and San Francisco at 9.7 and 9.4 times median household income, respectively.
The lack of affordable housing in New York City has been an ongoing concern. In January, New York Gov. Andrew Cuomo outlined a $20 billion program, funded by the state and bank settlements, to add 100,000 permanent housing units in the state over a five-year period, plus thousands more to provide shelter and social services.