What is the most unaffordable city in the world?

Quick answer and why the question is tricky

Short direct summary

There is no single, universally accepted answer to what city is the most unaffordable because surveys use different baskets, populations, and income adjustments. For housing-specific measures, one report names Hong Kong the least affordable by a common price-to-income metric, while global consumer-price surveys put cities such as Hong Kong, Singapore, and Zurich near the top depending on their baskets and weights.

To be useful you must pick the metric that matches your concern, for example whether you care about rent pressure, everyday consumer prices, or how local wages offset costs. This piece compares those approaches and points to the underlying 2024 sources so you can follow the methodology (see the news page for related updates).

Preview of metrics covered

The article covers three broad approaches: the median multiple used in housing affordability studies, consumer-price baskets used by expatriate and city price surveys, and combined price-and-earnings comparisons that adjust for local wages. Each answers a different question about affordability and produces different rankings.

What people mean by ‘most unaffordable’ – definitions and common metrics

Median multiple (price to income) explained

The median multiple measures housing affordability by dividing a citys median house price by its median household income, which highlights how many years of typical earnings are required to buy a median home. According to the housing report that uses this metric, very high median multiples indicate severe housing affordability pressure and are useful when the primary question is about buying a home rather than monthly living costs Demographia 2024 report.

This metric is most relevant to prospective homebuyers and long-term housing planning because it focuses specifically on the price-income relationship rather than on short-term consumer spending.

Consumer price baskets and expatriate surveys

Consumer-price surveys build a basket of goods and services and compare the prices in different cities, often for expatriates or corporate allowances, which answers how expensive daily life is for a given consumption pattern. Monthly living costs and services are emphasized in these surveys and they are commonly used by employers setting compensation differentials Mercer cost of living survey 2024.

Because these surveys select specific baskets and weight categories differently, they can show different cities near the top depending on the items emphasized, such as housing within a city, transportation, or local services.

Prices adjusted for local wages

Some analyses combine local prices with typical earnings to produce a picture of affordability for residents rather than for a standardized shopper. UBSs 2024 Prices and Earnings work is an example that shows wage adjustments can move high-price cities down the affordability concern list when local wages are also high UBS Prices and Earnings 2024.

This approach is relevant when you want to understand how residents experience costs relative to typical pay, but it requires reliable local wage data and careful PPP adjustments.

How housing affordability rankings point to Hong Kong

Demographia’s median multiple methodology

When housing affordability is measured by the median multiple, Hong Kong frequently appears as the least affordable market worldwide because median house prices are many times higher than median household incomes in the local data used by the report Demographia 2024 report.

Why Hong Kong ranks highly on housing unaffordability

Demographias framework classifies markets with very high median multiples as severely unaffordable and explains that factors like land constraints, market demand, and local taxation can amplify price-to-income ratios in gateway cities. The report is focused on housing affordability specifically, so its finding should be read as a housing-market result rather than a full statement about everyday consumer costs.

For readers prioritizing home purchase decisions, the median multiple is a direct indicator of long-term price pressure, but it does not capture monthly spending on groceries, transport, or services.

What global consumer price surveys show (Mercer and EIU)

Methodology differences between Mercer and EIU

Mercer and the Economist Intelligence Units city cost comparisons use different baskets, respondent bases, and weighting schemes, so they often list many of the same cities among the most expensive while differing in the exact order and score magnitudes EIU worldwide cost of living 2024.

These surveys are useful for comparing everyday cost pressures, especially for expatriates and international staff, but they are not designed to replace housing affordability studies if your main concern is buying property.

Cities that frequently appear near the top

Across published lists, Hong Kong, Singapore, and Zurich are repeatedly named among the most expensive cities for consumer prices, though their order changes by methodology and basket composition. Readers should interpret these lists as reflecting price levels for specific consumption patterns rather than as a single global truth Mercer cost of living survey 2024.

Because consumer-price surveys focus on a broad set of goods and services, they often capture everyday living costs that matter to renters and workers who are budgeting month to month.

Why wages matter: adjusting price rankings with UBS Prices and Earnings

How PPP-adjusted wages alter affordability

UBSs approach demonstrates that when local earnings are incorporated into comparisons, some high-price cities no longer rank as severely unaffordable for residents, because higher local wages can offset higher nominal prices UBS Prices and Earnings 2024.

This insight matters for someone evaluating how affordable a city feels to a typical local worker, but it can be less relevant to expatriates who receive standardized allowances or to buyers focused on nominal housing values.

Examples of cities that move when earnings are considered

In broad terms, finance and corporate hubs with strong earnings can look less unaffordable under a wage-adjusted lens than under price-only comparisons. The practical takeaway is to view price rankings and wage-adjusted rankings as complementary: one shows local purchasing pressures for residents and the other shows absolute price levels.

When considering such results, check whether studies use purchasing power parity adjustments and whether their wage series match the income distribution of local households.

Crowdsourced and aggregated indices: Numbeo and public overviews

How Numbeo gathers data and its strengths and limits

Numbeo compiles prices from user submissions and public data, which means its city rankings can align broadly with professional surveys but also reflect sampling and reporting biases that reduce confidence for definitive ranking claims Numbeo cost of living index 2024.

What aggregated overviews add and what they omit

Aggregated public overviews synthesize multiple lists to show patterns, often highlighting finance hubs and compact high-demand markets, but they do not replace the original surveys and may smooth methodological differences in ways that reduce nuance World Population Review overview 2024.

These summaries are useful for spotting recurring names across indices but should be supplemented with the primary source methodology if you need a precise ranking for decision making.

How to choose which ranking matters for you

Questions to ask before trusting a ranking

Before trusting a headline ranking, ask whether the list measures housing prices or a consumer basket, whether it references local residents or expatriates, and whether wages or PPP adjustments are included. Those choices determine which ranking answers your question best and which data you should prioritize Demographia 2024 report.

For renters, consumer-price surveys and local rental indices typically matter most. For prospective homeowners, the median multiple is directly relevant. For workers comparing real purchasing power across cities, wage-adjusted studies are most informative.

Which metric suits renters, homeowners, expats, and local workers

Match your scenario to a metric: homeowners should consult median multiples and local housing reports, expatriates should consult Mercer-style cost-of-living surveys for allowance planning, and local workers should look for analyses that include PPP-adjusted wages and local earnings data Mercer cost of living survey 2024.

Where possible, combine metrics: use consumer-price comparisons to budget daily expenses and housing measures to assess long-term affordability risk.

Common mistakes and interpretation pitfalls

Mixing survey types without noting metrics

A common error is to mix housing-only rankings with consumer-price lists without noting that they answer different questions; doing so can create misleading headlines about which city is actually the most unaffordable for a given purpose Numbeo cost of living index 2024.

Always check the metric and the target population before drawing conclusions from a combined list.

Over-reliance on crowdsourced samples or headline lists

Headline lists and aggregated tables are convenient but can obscure timing differences, exchange-rate effects, and sample limitations, so they are best used as high-level guides rather than definitive answers World Population Review overview 2024.

When possible, consult the primary survey methodology pages to confirm what is being measured and how scores are calculated.

Practical example: if you are an expat deciding where to accept an offer

Step by step checklist

Start by identifying whether your compensation will be local pay or an expatriate package, then compare Mercer or EIU cost-of-living scores to estimate daily expenses, next check UBS or local wage data to see how locals fare, and finally review local housing costs separately to understand rental or purchase pressure Mercer cost of living survey 2024.

This sequence helps you weigh what matters most for your situation: take-home pay, immediate living costs, and housing exposure.

How to use Mercer and UBS data together

Use Mercer to estimate relative consumer prices and UBS to view how local earnings affect residents purchasing power; together these perspectives show the difference between absolute expense levels and affordability for those who live and work in the city UBS Prices and Earnings 2024.

Also check recent exchange-rate movements and the date ranges of the datasets so that allowances or salary negotiations reflect current conditions. For local updates and commentary, see the about page.

Practical example: budgeting as a local resident or prospective homeowner

Using median multiple for long term housing decisions

Local residents and potential homebuyers can use the median multiple to estimate long-term price pressure by comparing the ratio of typical local house prices to typical incomes; when the multiple is very high, purchasing a median home requires many times median annual income and signals long-term affordability stress Demographia 2024 report.

For renters, the median multiple is less directly useful; instead combine local rental indices and consumer-price checks to build a monthly budget.

Check local consumer price indexes and use crowdsourced sites for item-level comparisons when planning monthly budgets, but always corroborate those checks with official or professional survey data where possible Numbeo cost of living index 2024.

For context on local policy or market drivers you can consult municipal housing reports, but remember those sources address local conditions rather than producing global rank lists. If you need help interpreting specific reports, contact the author for guidance.

Simple reproducible comparisons readers can run themselves

Data points to collect

Collect a small set of comparable data: median house price, median household income, a consumer-price index or Mercer score, and local average earnings. Use consistent currency conversion or PPP adjustments and align data by year to avoid timing mismatches UBS Prices and Earnings 2024.

Gathering these minimal points lets you reproduce a basic comparison and see how different metrics change the outcome.

How to normalise results for fair comparison

Convert all values to a common currency and either use PPP-adjusted wages or a recent exchange rate, then compute the median multiple and compare consumer-price scores side by side. Note any time lags in the datasets and treat crowdsourced samples with extra caution.

When combining sources, document the date and the exact metric used so you or others can reproduce the comparison later.

Recent trends since 2024 and what to watch for in 2026

Exchange rate volatility and PPP effects

Exchange-rate movements since 2024 can affect PPP-adjusted rankings, potentially changing which cities look more or less affordable when wages are converted for international comparison, so check the latest currency trends when comparing recent reports UBS Prices and Earnings 2024.

Because many surveys update annually, some post-2024 price moves may not be reflected immediately; verify the release dates and data windows of the reports you consult.

Data collection timing and post-2024 changes

Annual indices have reporting lags that can obscure recent local market shocks or rapid wage changes, so look for the most recent editions of the core reports and consult exchange-rate series for up-to-the-minute adjustments.

For up-to-date planning, prioritize the latest primary publications and confirm whether they adjusted for recent inflationary or currency shifts.

Conclusion: no single city is ‘the’ most unaffordable without a metric

Answering which city is the most unaffordable depends entirely on the metric you choose: use Demographia for a housing-focused answer, Mercer or the EIU for consumer-price perspectives, and UBS for a wage-adjusted resident view Demographia 2024 report.

Pick the metric that matches your situation, check the primary reports for their methodology, and combine perspectives when possible to form a fuller picture rather than relying on a single headline ranking.