Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Portugal, the Netherlands and Austria are among the countries where house prices grew the most in comparison to income since 2015. In the fourth quarter of 2024, the house price to income ratio in the Netherlands and Austria exceeded 120 index points, indicating that since 2015, house price growth has outpaced income growth by 20 percent. In Portugal, the index amounted to 153 index points in the same period. This was not the case in all countries in the ranking: In Finland, Bulgaria, and Romania, the opposite trend was observed, showing that incomes grew faster than house prices. The house price to income ratio is calculated as the nominal house prices divided by nominal income per capita, with 2015 chosen as the base year of the index. The ratio signifies the development of hosing affordability, with higher figures meaning housing is more unaffordable. There are other indices, such as RHPI (or house price indices corrected by inflation rates) which look at this as well.

The house price to income ratio in Germany in the first quarter of 2024 declined notably from its peak in 2022. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Germany's index score in the first quarter of 2024 amounted to 109.7, which means that house price growth had outpaced income growth by about 10 percent since 2015. This was below the average house price to income area in the Euro area 16.

Japan JP: Standardised Price-Income Ratio: sa data was reported at 89.185 Ratio in 2023. This records an increase from the previous number of 87.364 Ratio for 2022. Japan JP: Standardised Price-Income Ratio: sa data is updated yearly, averaging 113.334 Ratio from Dec 1960 (Median) to 2023, with 64 observations. The data reached an all-time high of 163.015 Ratio in 1973 and a record low of 73.387 Ratio in 2009. Japan JP: Standardised Price-Income Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Japan – Table JP.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by nominal disposable income per head. Net household disposable income is used. The population data come from the OECD national accounts database. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

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The house price to income ratio in the U.S. increased in 2023, after falling slightly in the second half of 2022. The ratio measures the development of housing affordability and is calculated by dividing the nominal house price by the nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. In the third quarter of 2024, the index score amounted to 130.3, which means that house price growth has outpaced income growth by over 30 percent since 2015.Stagnant wages Average annual real wages steadily rose until 2014 but have since remained stagnant. However, single-family house prices have continued to increase. This disparity has resulted in decreased housing affordability. Average wages needed to buy a home The share of wages needed to buy a median priced home in the United States has been steadily increasing since 2012. This trend is reflected in the house price to income ratio as well. The availability of affordable housing will become more important, if the price to income ratio continues to develop in this way.

Israel IL: Price to Income Ratio: sa data was reported at 104.557 2015=100 in 2016. This records an increase from the previous number of 100.000 2015=100 for 2015. Israel IL: Price to Income Ratio: sa data is updated yearly, averaging 91.707 2015=100 from Dec 1995 (Median) to 2016, with 22 observations. The data reached an all-time high of 109.854 2015=100 in 1997 and a record low of 70.441 2015=100 in 2007. Israel IL: Price to Income Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Israel – Table IL.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by nominal disposable income per head. Net household disposable income is used. The population data come from the OECD national accounts database.

Belgium BE: Price to Income Ratio: sa data was reported at 97.066 2015=100 in 2023. This records a decrease from the previous number of 102.148 2015=100 for 2022. Belgium BE: Price to Income Ratio: sa data is updated yearly, averaging 71.817 2015=100 from Dec 1970 (Median) to 2023, with 54 observations. The data reached an all-time high of 104.712 2015=100 in 2021 and a record low of 51.468 2015=100 in 1986. Belgium BE: Price to Income Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Belgium – Table BE.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by nominal disposable income per head. Net household disposable income is used. The population data come from the OECD national accounts database.

Taiwan Housing Price to Income Ratio: Taoyuan City data was reported at 8.140 Times in Dec 2017. This records a decrease from the previous number of 8.220 Times for Sep 2017. Taiwan Housing Price to Income Ratio: Taoyuan City data is updated quarterly, averaging 6.245 Times from Mar 2002 (Median) to Dec 2017, with 64 observations. The data reached an all-time high of 8.580 Times in Dec 2016 and a record low of 5.180 Times in Dec 2002. Taiwan Housing Price to Income Ratio: Taoyuan City data remains active status in CEIC and is reported by Construction and Planning Agency, Ministry of the Interior. The data is categorized under Global Database’s Taiwan – Table TW.EB017: Housing Price and Housing Loan Payment to Income Ratio.

The average for 2021 based on 133 countries was 54.8 percent. The highest value was in Switzerland: 94.5 percent and the lowest value was in Syria: 10.52 percent. The indicator is available from 2000 to 2021. Below is a chart for all countries where data are available.

The house price ratio in Italy declined between 2012 and 2024. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Italy's index score in the second quarter of 2024 amounted to 86.2, meaning that income growth has outpaced house price growth. Most of the countries in the Euro area observed the opposite trend, with house prices having risen at a faster pace than income.

The house price to income ratio in Francedecreased by 8.3 index points in the second quarter of 2023, compared to the same period the previous year, reflecting a slowdown in the housing market. In 2023, the house price to income ratio amounted to 104.5 index points. The ratio is calculated by dividing nominal house prices by disposable income per head, with the index value of 100 in 2015. A ratio of 110 index points shows that house prices have grown 10 percent faster than income since 2015.

Turkey, Russia, Portugal, and Latvia were the countries with the highest house price-to-rent-ratio in the ranking in the second quarter of 2024. In all three countries, the ratio exceeded 160 index points, meaning that house price growth had outpaced rents by over 60 percent between 2015 and 2024. What does the house-price-to-rent ratio show? The house-price-to-rent-ratio measures the evolution of house prices compared to rents. It is generally calculated by dividing the median house price by the median annual rent. In this statistic, the values have been normalized with 100 equaling the 2015 ratio. Consequentially, a value under 100 means that rental rates have risen more than house prices. When all OECD countries are considered as a whole, the gap between house prices and rents was wider than in the Euro area. Measures of housing affordability The national house-price-to-rent ratio may not fully reflect the cost of housing in a particular country, as it does not capture the price variations that can exist between different regions. It also does not take into consideration the relationship between incomes and housing costs, which is measured by the house-price-to-income and household-rent-to-income ratios. Taking both these factors into account uncovers vast differences in housing affordability between different regions and different professions.

Bank cost to income ratio (%) in Brazil was reported at 55.83 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. Brazil - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on March of 2025.

In the third quarter of 2024, the house price to income ratio in Japan stood at 117.5 representing an increase of 0.8 index points compared to the previous quarter. The ratio is calculated by dividing nominal house prices by the nominal disposable income per head based on net household disposable income.

The house price-to-income ratio in Australia was 122.1 as of the third quarter of 2024. This ratio, calculated by dividing nominal house prices by nominal disposable income per head, increased from the previous quarter. The price-to-income ratio can be used to measure housing affordability in a specific area. Australia's property bubble There has been considerable debate over the past decade about whether Australia is in a property bubble or not. A property bubble refers to a sharp increase in the price of property that is disproportional to income and rental prices, followed by a decline. In Australia, rising house prices have undoubtedly been an issue for many potential homeowners, pricing them out of the market. Along with the average house price, high mortgage interest rates have exacerbated the issue. Is the homeownership dream out of reach? Housing affordability has varied across the different states and territories in Australia. In 2024, the median value of residential houses was the highest in Sydney compared to other major Australian cities, with Brisbane becoming an increasingly expensive city. Nonetheless, expected interest rate cuts in 2025, alongside the expansion of initiatives to improve Australia's dwelling stock, social housing supply, and first-time buyer accessibility to properties, may start to improve the situation. These encompass initiatives such as the Australian government's Help to Buy scheme and the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) programs.

New Zealand has one of the highest house price-to-income ratios in the world; nonetheless, since the first quarter of 2022, the country's house price-to-income ratio started to trend downward. In the second quarter of 2024, the ratio was 119.4, a slight decrease from the same quarter of the previous year. This ratio was calculated by dividing nominal house prices by nominal disposable income per head and is considered a measure of affordability. Homeownership dream New Zealand has been in what is widely considered a housing bubble. The disproportionately large increases in residential house prices have placed the dream of owning their own home out of reach for many in the country. In 2024, around 28 percent of residential properties were sold for over a million New Zealand dollars. The majority of mortgage lending in the country went to owner-occupiers where the property was not their first home, with first-home buyers often struggling to secure a loan. In general, only New Zealand residents and citizens can buy homes in the country to live in, with new regulations tightening investment activity in that market. Rent affordability Due to New Zealand's high property prices, many individuals and families are stuck renting for prolonged periods. However, with rent prices increasing across the country and the share of monthly income spent on rent trending upwards in tandem with a highly competitive rental market, renting is becoming a less appealing prospect for many. The Auckland and Bay of Plenty regions had the highest weekly rent prices across the country as of December 2024, with the Southland region recording the lowest rent prices per week.

Graph and download economic data for Bank's Cost to Income Ratio for Montenegro (DDEI07MEA156NWDB) from 2003 to 2021 about Montenegro, ratio, expenditures, banks, depository institutions, and income.

Taiwan Housing Price to Income Ratio: Hualian County data was reported at 7.880 Times in Jun 2018. This records a decrease from the previous number of 8.160 Times for Mar 2018. Taiwan Housing Price to Income Ratio: Hualian County data is updated quarterly, averaging 6.540 Times from Mar 2002 (Median) to Jun 2018, with 66 observations. The data reached an all-time high of 8.220 Times in Jun 2017 and a record low of 5.060 Times in Jun 2002. Taiwan Housing Price to Income Ratio: Hualian County data remains active status in CEIC and is reported by Construction and Planning Agency, Ministry of the Interior. The data is categorized under Global Database’s Taiwan – Table TW.EB017: Housing Price and Housing Loan Payment to Income Ratio.

The house price to income ratio index in Spain increased by about 15 index points between 2015 and the second quarter of 2024. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Spain's index score in the second quarter of 2024 amounted to 115.5, which means that house price growth has outpaced income growth by more than 15 percent since 2015. This was slightly higher than the Euro area 17 average.