Think housing prices in your market are bad? Other places in the world have it even worse.
In fact, New York City was the only city in the U.S. to make it on Money Inc.’s list of the “20 Most Expensive Cities to Buy a Home in the World.” The other 19 cities were all around the world — from Monoco and London to Hong Kong and Moscow.
The median home price per square foot in the U.S. is about $150. That is only about 1/10 of what it would cost to live in New York City, and significantly less than many other places across the globe. So, while we think we may have it bad, there is nothing wrong with the good ole’ USA for many homebuyers.
While many U.S. cities are not among the top 20 most expensive places to live, and overall owning a home is affordable across the country, many U.S. cities are still just too expensive for many Americans. Cost to own in or near “Metropolis” is why there are more renter households today than at any point since the mid-1960s — well before most of today’s renters were even born.
For 67% of renters, renting is simply more affordable than buying. That is not going to change. The most affordable locations to live are great places — just not in areas where there is the most demand for housing. People want to be near shops and restaurants, entertainment, beaches, and most importantly, their jobs. No one seems to want the commute that drove mini mansion development in the way-out suburbs.
It’s a lifestyle choice. One that many young people and more and more 50-somethings are drawn to.