The world’s most affordable country to purchase a home in Saudi Arabia

U.S. Housing Prices Rank Third Most Affordably in 2021

Saudi Arabia, with an average annual salary of just over $20,354.90 and a 100 square metre (sqm) home costing just $90,774.38, is the world’s most affordable country to buy a home in 2021, according to a new global home affordability study from British building supplier Roofing Megastore.

The research team at Roofing Megastore determined the average price per square metre of real estate in 109 different nations to create the ranking. The price was then multiplied by 100 to represent the average cost of a 100 sqm home.

Average earnings (after tax) were also taken into account to show the annual salary as a percentage of the price of a 100 sqm home, which helped paint a more accurate picture of affordability. The study also reveals how many years it would take to buy a 100 sqm home on an average annual salary, which serves as an additional illustration of the stark contrast between the most and least affordable locations.

The Top 50 Most Affordable Countries To Buy a Home In

When earning potential is taken into account, a full year’s salary in Saudi Arabia actually equates to more than 22% of the cost of a complete home, meaning that if all of the salaries was saved and not spent, there would be enough money in less than five years to buy a home outright.

The US is the third most affordable country in the world to buy a home, with annual average salaries that are over 15% of the cost of a home. South Africa ranks second in the top 50 list with a wage-to-home-cost ratio of 18%.

A 100-square metre home typically costs just over $239,530.00 and a yearly salary in Puerto Rico is equivalent to almost $21,637.65; as a result, an average annual wage would be roughly 14% of the price of a home.

The United Arab Emirates rounds out the top five, in fifth place, with an average home costing nearly $239,530.00 and an annual salary bringing in nearly $32,558.63. It is marginally less affordable in terms of real estate than Puerto Rico.

The Least Affordable Countries To Buy A Home In

On the other end of the spectrum, it comes as no surprise that the notoriously pricey South Korea and Hong Kong rank among the top 10 most expensive places to buy a home.

It would take 149 years to save up enough money to buy a home in Ghana, the country with the least affordable housing prices, where the average property price is just over $510,658.55 and the average annual salary is only about $3,420.47.

The average cost of a 100-square-metre home in Sri Lanka is around $212,748.44, but the average annual salary is also low, coming in at just under $3,000 per year. This is only 1.33% of the price of a home, so it would take 75 years of nonstop saving to be able to purchase a 100-square-metre home.

In the entire study, Hong Kong, which came in third, had the most expensive real estate, with an average 100 square metre home costing $212,748.44. When compared to the price of a home, the average annual salary in Hong Kong is almost $37,755.49, or 1.36%.

Fourth on the list of countries where buying a home is most difficult to afford when purchasing power is taken into account is Jamaica (1.63%), and Iran (1.72%) rounds out the bottom five.

South Korea, known for being extremely expensive, comes in at number six. Average salaries in South Korea are $26,571.03, which is higher than four of the top five most expensive places, but a 100 square metre home would cost over $1 million, so it would take 47 years to pay for a home outright if no money was spent from an average salary.

“Although in reality, it would be impossible to save 100% of your income and not use any for standard costs of living, the length-of-time-to-buy equation serves to really illustrate the difference between the most and least affordable places to buy a home around the world,” said Gian-Carlo Grossi, managing director of Roofing Megastore.

Realestate