The United States, Chile and Spain Top in Housing Costs; Over 40% of Low-Income Residents Spend 40% of their Income on Housing

Global house prices have skyrocketed in the past decade, rising by an average of 40% across major markets. Still, this figure varies widely, with some countries, like Spain, Canada, and the United States, seeing much bigger price hikes of between 70% and 150%. In most of these countries, housing costs have become a massive burden for the low-income population.

According to data presented by Stocklytics.com, the United States, Chile and Spain top in housing costs, with more than 40% of their low-income population spending 40% of their available income on housing.

Low-Income Europeans are Much Less Burdened by Housing Costs than Americans

The supply and demand imbalance in the US housing market, surging construction costs after COVID-19, labor shortages, and rising interest rates have significantly increased home prices and limited access to homeownership for many Americans​. According to Federal Reserve Economic data, the median sales prices of houses in the United States jumped by an average of $15,400 per year during the last decade, reaching $412,300 in Q2 2024. Although this represents a 6% drop from an all-time high of $442,600 in Q4 2022, the average house price is almost twice as high as in 2014.

And while first-time buyers are struggling to enter the market, most of those who already own a property in the United States find housing costs practically unbearable. With 48% of low-income residents spending 40% of their available income on housing, the United States is second among the countries with the highest housing costs.

According to Statista and OECD data, only Chile is ahead of the United States, with 68% of low-income people spending the same percentage of income on housing. Spain ranked third with 41% of respondents. These figures are even more shocking when compared to other developed countries.

For instance, only one-third of low-income Canadians spend 40% of their money on housing. In top European economies, this share is even lower. Statistics show that only 18% of French and 16% of Germans with the same available income spend that much on housing, or three times less than Americans.

Housing is the Biggest Issue for More than One-Third of Residents in Developed Countries

Although housing shortages and skyrocketing rental prices are a much bigger problem in the United States than in Europe, they have become a significant source of tension in many countries around the globe.

According to data from a Statista Consumer Insights survey, an average of 39% of respondents in developed markets think housing is one of their biggest issues, with massive differences between the countries. For instance, 58% of Canadians find housing the most pressing issue. Netherlands and Australia are close to these figures, with 56% and 52% of respondents claiming the same. The United Kingdom and Germany had a slightly lower share of respondents worried about housing shortage and rising rental prices, around 40%.

Interestingly, although the United States has the second-highest housing cost globally, only 38% of respondents found housing their top problem. Issues that ranked higher were economic situation, inflation, crime, and health and social security.