No Wonder Home Buying is so Tough

UK figures for 1015 show the average house in the UK costs 8.8 times the average UK salary. In parts of London (Kensington and Chelsea) the average house price is 38.8 times the average UK salary. From memory, the average UK salary is about £27000 per year (About $38000 at current exchange rates).

Not sure what the stats are here Elizabeth but I do know that Denver is a high rent city. I am not sure how anyone affords to home buy here as the prices are outrageous, but compared to other cities, Denver is not expensive. I know in the last year, the rents have skyrocketed.

Of course what your salary is depends on what type of work you do. Here the average salary per year is around $51,000 and homes average around $87,000.

The situation here in Switzerland is the same, the prices are still rising and people cannot afford anymore to buy.

I see @WorDazza has given you the figures for the UK - is it any wonder that young people can't afford their own homes?

I'm not sure of the stats around here but we got our house for 50 k, If I moved this house to California it would run 2 or 300 thousand I'm sure.

Obviously house prices have risen sharply over the years in England, but so have wages. To be honest I cannot say for certain whether the two figures balance or houses have become disproportionate.

That's only tip of the iceberg. You also have to consider credit scores. They can be another hindrance to buying a house.

I am not sure exactly what the stats are here, but I think that they are about what you have said. I believe that the home prices are actually somewhere in the middle between the high and low prices that you have listed. Unfortunately, I think that the average salary is more in line with the $50,000 average, though.

There are many factors that go into such comparison of course. Average amenities would have changed from 1970's to 2014. Those would have become standard norms in homes which was not the case back in 1970's. Size of home, quality of materials used to build homes, etc., need to be considered, as also proximity to the city or place of employment and other facilities like health care, entertainment, etc. Out here, in 1985 I bought a home for dad. Overall cost of land for that home was 40000 INR, and construction cost for about 800 sft building may have come to another 100000 INR. Total 140000. My salary back then was measly Rs.325/- per month but age was on my side, and we got the loan based on some land income which could not have been more than 3000 INR per month. Going was tough with the loan EMIs. Fast forward after real estate boom, that house was sold. Today it would cost about 12500000 INR. Our income has touched about Rs.100000 per month. In dollar terms at today's rates The house cost me $2,121 or so back then, and my income was merely around $50 or so. Annual - $600 to 3.5 years income equivalent. Today it is about $1,89.393. As to income Rs.18,181 per annum. That is more than 10.41 years income. But as I said, back then it was in outskirts, people took turns for security, water would log in, it was pretty much a village life, and the boom is essentially because of new plans due to software. Comparison needs to be of equal level. Number of large homes back then may have been fewer. Now more people may be able to afford larger homes. I find me more comfortable now than I was back then. Thanks to real estate boom of course. And this lowering of income is inevitable with increase in population because income gets divided across larger set of people.

Wow that is a hefty price for a home. We bought our first home when we were in TN for $50,000. We were stunned to buy our next home in GA for double that.

Our market here in Eugene is tight, but Portland, where my daughter lives, is out of site. The population is booming and the average house gained 12% in the last year. She is actually making an offer on a tiny place in a good area for an exorbitant price. We are going up for the inspection tomorrow.

I live in a tourist town, so a good deal of the jobs here are minimum wage salaries in entertainment and food services and motel staff. However, we looked at a PROPERTY without a home built on it yet, and they wanted $900,000 for it. I guess they will keep it for a while.

It`s much worse here,taxes are too high,cost of living way over what most can afford and home buying? well,most people do not even dream of owning homes unless they win the lottery.

Not as high as yours but while income is high in Connecticut, the price of homes is too but not nearly as bad as 8 or 10 years ago. A lot of people are upside down on their mortgages and can't sell their homes without taking a huge loss. My daughter falls into this category!!

In 1969 my dad retired from the Army and came to Colorado. He bought his house for $18,000 and only needed an income of $100 per week to buy the house. The house would now be eorth over $200,000

When I was living in NY the prices of houses were ridiculously expensive for just a plain ordinary house. Moving to PA the prices are more realistic for the same type of house

I don't know, but I don't think I want to know, it's too depressing.

I don't know the stats, but I do know that our town is very wealthy, and most are screenwriters, playwrights, doctors and professors at Yale, lawyers, and business men. The homes are huge and out of the price ranges for most, especially young families just starting out. I'm thrilled that both my sons earn a very good living and can afford their own homes.

You're right- it is getting worse- I read a headline somewhere that said: Could you buy your home today? Hard for young people starting out too!