Housing is becoming unaffordable across the world

[Porfirii]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

Not only first time and ordinary people, even the middle-waged earners they're also having difficulty in purchasing their homes.

The monopoly of the real estate industry has been there and the wealthy people are in the game controlling the market per area.

•What could be the possible solution?

The government needs to help everyone. From affordable social housing and helping to subsidize the mortgages. The law of supply and demand is still applicable here.

When there will be more houses to occupy, the demand will become lesser. Thus, the price is.

Although I am not in favour of interventionism when it is not really necessary, I think that in cases like those that are occurring in several countries around the world, including mine, in which due to speculation and vulture funds, access to housing is practically impossible with current salaries, a series of limits should be imposed on the price of housing, either with a limit to the maximum price increase per year, or special taxes on large holders.

Here, with the most recent change in the housing law in Spain, there are the so-called "stressed areas" in which the practicable rise in the price of rent is limited, but it is clearly an insufficient measure seeing how the price of real estate is only rising.

[AmaGold70]

Indeed, house rentage is exorbitantly very high, and because of high cost of building materials, some people who are surpose to build their own house are now renting house to live, and cost of rentage has also pulled some persons from cities to areas where buildings or houses are more affordable, and some moving from new buildings to older buildings.
Government is actually the cause of these high cost of rentage, and they should be the one to manage, and regulate it. It is government policies that causes inflation, and cost of building materials, and it might be difficult to regulate cost of rentage when building materials are on the increase. However, if more towns, and cities are created, and and industries distributed across these towns, and cities, people will not cluster in one place, and can give avenue for house rentage price reduction.

[cryptomaniac_xxx]

Indeed, house rentage is exorbitantly very high, and because of high cost of building materials, some people who are surpose to build their own house are now renting house to live, and cost of rentage has also pulled some persons from cities to areas where buildings or houses are more affordable, and some moving from new buildings to older buildings.
Government is actually the cause of these high cost of rentage, and they should be the one to manage, and regulate it. It is government policies that causes inflation, and cost of building materials, and it might be difficult to regulate cost of rentage when building materials are on the increase. However, if more towns, and cities are created, and and industries distributed across these towns, and cities, people will not cluster in one place, and can give avenue for house rentage price reduction.

It's also about the growing population. Before with our parents, and we are very lucky if our parents have their own lot and houses for us to inherit. But there are people who really don't own houses and obviously we only rent.

But now, the time is very different, everything is crowded now and so with that, it's even very hard to buy because it's too expensive unless your really save a lot of money or again, inherit something from your parent.

So I guess for the next generation, and if we can give advise to our kids to really put in the effort to save money so that they can get housing loans, payable in 10-20 years so that when they retire they have a place to stay.

[sunsilk]

~snip~

Although I am not in favour of interventionism when it is not really necessary, I think that in cases like those that are occurring in several countries around the world, including mine, in which due to speculation and vulture funds, access to housing is practically impossible with current salaries, a series of limits should be imposed on the price of housing, either with a limit to the maximum price increase per year, or special taxes on large holders.

Here, with the most recent change in the housing law in Spain, there are the so-called "stressed areas" in which the practicable rise in the price of rent is limited, but it is clearly an insufficient measure seeing how the price of real estate is only rising.

I think it's the same for most countries, the price of housing skyrocketed that not even the middle class can afford it.

And even with that certain rule you've mentioned to limit the increase won't just stop it wholly. If the government continues to be actively intervening with it, what I think they can only do is to limit how many houses could be stopped in price increase.

But the whole thing of the continuous price increase is no way for them to stop unless they buy everything and subsidize it at a cost and loss.

Or a real estate bubble pops and due to the supply and limit, more houses - no takers so price goes down or they completely rotten and destroyed with no one benefits from it and the developers together with the government just have to deal with the losses.

[Unknown Op]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

•What could be the possible solution?

The main issue is that the number of houses built is fewer than the number of people who need them. At same time, some people are buying multiple properties for investment, which reduces number of houses left for families who actually want to buy one and is actually causing pushed way higher than human affordability. There are multiple solutions to this issue. One possible solution for this issue could be that government can support construction of more houses and make it easier for first time buyer.

The government can also provide less expensive public transport that can help them live in less expensive areas, and government can also build low cost houses for people. Who are from middle class income families, government can also increase wage rate for people so that they can keep pace with the cost of living and save money to buy properties.

[letteredhub]

The only possible solution to the increasing demand for housings and the price hike that comes along with it as a result of the high demand from possible buyers and developers is for government to regulate the process thereby reducing the excesses of these developers who seek to exploits first time buyers who are eager to own their own properties.

It's the sole responsibility of the government to do it because if they refuse to do it then it would be business as usual, without the necessary regulations the developers would stop at nothing but to continue exploiting the gullible buyers.

[leonair]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

•What could be the possible solution?

In fact, the population is increasing day by day in different countries and owning a house in those countries is a very challenging matter. Those who have a lot of money are investing in houses because in this context of inflation, investing in house property is very profitable. Here, the price of house property will increase as time goes by and on the other hand, he will be able to earn a regular income by renting his house. And for this reason, owning a house has become a very challenging matter for the common man. And in the future, their impact will increase further because of the increase in population and the increase in inflation rate in the country. And it is becoming almost impossible to deal with it.

[Alex077]

and government can also build low cost houses for people. Who are from middle class income families, government can also increase wage rate for people so that they can keep pace with the cost of living and save money to buy properties.

It sounds very easy. But the matter is not so simple, man. Government will make houses for poor but where does government's income come from? Do not forget govt's main source of income is vat and tax paid by people. So if govt goes to do housing project then the amount of vat and tax on people will naturally increase. This will appear as additional burden on  middle class people.

Also, these project can collapse due to administrative complication and inefficiency. More complicated matter is that this will discourage private investor too. So that they will reduce investment. As a result there is possibility of reducing the overall housing supply. Then new problems will arise.

[arwin100]

and government can also build low cost houses for people. Who are from middle class income families, government can also increase wage rate for people so that they can keep pace with the cost of living and save money to buy properties.

It sounds very easy. But the matter is not so simple, man. Government will make houses for poor but where does government's income come from? Do not forget govt's main source of income is vat and tax paid by people. So if govt goes to do housing project then the amount of vat and tax on people will naturally increase. This will appear as additional burden on  middle class people.

Also, these project can collapse due to administrative complication and inefficiency. More complicated matter is that this will discourage private investor too. So that they will reduce investment. As a result there is possibility of reducing the overall housing supply. Then new problems will arise.

Not good to increase the tax just for the sake of having funds to build houses, because there's a lot of possible issues will raise towards this matter.

Yeah government can do that if they want to push this situation to happen. But its not ideal action to do because there's no return to get if they push this kind of projects. Middle class earner are the one will suffer from possible increase of taxes and this is not good for those working class.

Low cost housing maybe good option with this and government will do partnership with private investor. Since with this maybe at least there's some economical movement happening which can help the economy to kick in.

[EFS]

Looking at average house prices and average salaries, even if someone saved every penny they earned without spending anything on food or anything else, it would still take at least 15 years to buy a house. And that's without even factoring in inflation, loans or everything else that affects affordability.

In a situation like that, owning a house naturally becomes almost impossible.

Unfortunately I don't think there's a real solution. People keep voting for politicians whose policies leave them poorer, then expect things to change. While policies that discourage or reduce private ownership already being discussed, it's very likely that a few generations from now, hardly anyone will be able to own a house.

[tabas]

None. Even the economists don't even think there's a solution to this housing problem. When things inflate so much like real estate, pulling down the prices is highly unlikely. We'd see a lot of these houses end up in the hands of the rich and they'll have it rent for all those who can't afford it. If there are caves nearby the town, I think that people would choose to live there for free without the cost and will have their energy supplied through solar panels. But developed areas, they're so expensive and someone who wants a dream home might just pass onto that dream for realizing how much is the cost.

[Crypto_Timothy]

Nobody has the time to build a home from scratch again, truth be told, nobody really has that time and just like you said with everyone moving to the city, getting a housse now it just too expensive especially as the demand for it keeps sky rocketing. Even if you see a house you like and start planning towards it, there is a high chance that when you want to actually purchase the house becuase you have worked years, you will end up seeing the price has gone higher because one thing with the housing market, the price always goes up every year. I really cant say i have a solution right now but the housing issues isnt something that's look like it is getting a solution anytime soon becuase just like you said, the investor who are meant to be solving these problems are buying properties just so they can add price and sell it higher or rent it to other people, i do think the solution to an extend can come from the government if they are intentional about tackling the issue itself.

[panjul07]

Looking at average house prices and average salaries, even if someone saved every penny they earned without spending anything on food or anything else, it would still take at least 15 years to buy a house. And that's without even factoring in inflation, loans or everything else that affects affordability.

In a situation like that, owning a house naturally becomes almost impossible.

Unfortunately I don't think there's a real solution. People keep voting for politicians whose policies leave them poorer, then expect things to change. While policies that discourage or reduce private ownership already being discussed, it's very likely that a few generations from now, hardly anyone will be able to own a house.

I thought this situation is happening in 3rd world countries only like in my country where it sounds impossible to have a house if citizens relying on their salary which in average is low but I think I was wrong as this phenomenon is also happening almost all around the world.
The most practical option is to buy a house on a mortgage, but of course it will take anywhere from a dozen to several dozen years if we are only earning an average salary.
Here in my country, the government is trying to provide a solution by offering subsidized housing but there are always problem with it such as quality, location, complicated administration process, etc.

[Olatundespo]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

•What could be the possible solution?

Since there are not many civic amenities in the villages, most families are urban-oriented, as a result of which the cost of housing and land in the cities is much higher than in the villages. Employment opportunities are very limited in the villages, so many lower-middle-class families live in the cities in search of work. They give more importance to finding work than to finding better facilities. If there were adequate employment opportunities in the villages, many families would not have moved to the cities.

Where there is a large gathering of people, there is a business opportunity, so many businessmen expand their businesses in crowded areas from commercial considerations.

The possible solution to this is to create employment opportunities in the villages and increase the necessary education and medical services and the government should be sincere in meeting every basic need, as well as individual efforts.

[Uhwuchukwu53]

The issue of housing not affordable as well available is general course by government and some greedy individual who acquired land for estate purpose, but I will actually center the blame on government as who have regulatory authority to control and moderate the cost of letting house or renting depending on the established rate of the state or nation.
 Today in our society government has no power because they follow in the cost of the housing because provisions of staff quarter and other houses which government do Carry out to help the less previlledge is no longer there,  the increase in taxation and cost of building materials and others factors have made this houses unaffordable, the only way government can cut down this in our society is reduction of tax which is not possible, given grant to estate investor as well build government accomodations for the less previlledge and some staff else build will remain unaffordable. Secondly government most cut down the acquiring of land by private individual who buy for commercial purposes without development but target when land increase in cost as that put some citizens who are ready and willing to build into struggle for acquiring land with higher cost spending what would have been used only for land.

[BRINIRHA]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home.

It is more difficult now but not impossible if you are able to plan properly and set a target on a home that you can realistically afford. For example, if you are an average income earner, it will be extremely difficult for you to plan to own a home that is very large and will cost a lot. There are smaller structures that, if possible, you can afford, move into, and plan your life around and from there move on to something better.

The possibility is always there but when looking at the comparison of annual wages that rose in the figure of 3-5%/year it is very inadequate when compared to the increase in real estate prices are always in the figure of 7-10% / year.
Payscale: companies in the US predict a salary increase of 3.5% for 2026
How long does it take for the value of an investment property to double?

With this data, of course, we can see inequality so that even if there is an opportunity to buy property, this needs further consideration or those who are quite determined when they buy and only make their salary as a backup in paying.

Some may impose a mortgage for this but this is also not an answer that matches the current conditions. So by looking at this condition it will be very reasonable when the longer the property will be more difficult to reach.

[Marvelockg]

The only possible solution to the increasing demand for housings and the price hike that comes along with it as a result of the high demand from possible buyers and developers is for government to regulate the process thereby reducing the excesses of these developers who seek to exploits first time buyers who are eager to own their own properties.

I have always advocated for the split in the location of industries and not a situation of concentrating all the industries in same area causing the over population of that region making those in search of houses far more than the available houses. check out the supposedly most civilized country and you will find out that there wealth is just concentrated in a small region of there society and that the overall population of the people in that region is concentrated in that region. circulate industries in different location and reduce the concentration of people in a single location and you will solve at least 70% of the current housing problem.

[GiftedMAN]

The only possible solution to the increasing demand for housings and the price hike that comes along with it as a result of the high demand from possible buyers and developers is for government to regulate the process thereby reducing the excesses of these developers who seek to exploits first time buyers who are eager to own their own properties.

The government will not respond to this demand because of their involvement in the real estate and housing business, the growing cost of high prices in houses in the developing and the underdeveloped countries is because the politicians has now taken over the business as their own personal way of milking the people and making things more difficult for them and the worst part of it is that most of them use their powers and office to make money they use in investing in the business yet they do not want it to be affordable for the people.

The estate developers can't be stopped by the government since they are partners and they know exactly what they are doing, it will take the actions of a separate body who is not involved in the act to sanction the action of the developers because they are making houses more expensive everywhere.

[Adiljutt156]

Inflation is the cause of it and it is happening in every sector and not just in housing. I remember asking someone about a business I could do that I won’t have issues with the one been put in charge to look into the business for me and he said immediately that building a house and putting it out for rentals is one of the lucrative businesses now. I was shocked hearing that but after doing my research more on how building materials are getting more expensive, landlords also tend to increase their house rents. Even old houses are now increasing their initial cost of renting an apartment to meet up with the current price of building materials in the market now. The only solution is the prices of building materials falling down, if not falling down, we may continue to see the rise for years to come from now.

I think the rising cost of building materials is not only the reason behind increasing value of rent. The price of construction is affected by many things, but on the other hand, rent is affected by supply and demand, because of population growth or urbanization, taxes and local housing policies. There are cities where the prices of rents are continuously increasing, though their building material prices are stabilized. If the demand for houses is continuously increasing, then landlords are likely to raise rents regardless of the prices of cement, steel or any other material.

[Bluedrem]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

•What could be the possible solution?

My region is one of the most densely populated regions in the world, so the housing problem is also at an extreme level in my region. If someone wants to buy land to build a house, they have to spend a lot of money, but their income is very low compared to that. So most of the time it is seen that many people live together in each family.
I think that like my region, there is a similar problem in other parts of the world where if someone wants to build a house, they have to spend most of their earned money on building a house. And there are also many who cannot afford to build a house with their entire life's earnings.
Honestly, it is not possible to say with 100% certainty what the solution to this problem can be. It may seem that a large building can be built on a small piece of land and a place to live, but in that case a person will have to increase his income.