Sydney has been ranked the seventh most unaffordable city in the world according to the 3rd Annual Demographia International Housing Affordability Survey, conducted by property analyst Wendell Cox Consultancy, and has thus been classified as "severely unaffordable".
According to the report, citizens of London and New York are more easily able to obtain a property than the citizens of Sydney. The west coast of the US topped the unaffordable list with Los Angeles, San Diego and San Francisco at one, two and four respectively, with Honolulu, Hawaii sitting in third place.
"House price inflation is costing years in additional gross income for purchasing households in the most affordable markets. This includes both the purchase price as well as the higher mortgage repayments," the report said.
Australia has also been classified as the most unaffordable nation with seven of the eight major markets being classified as "severely unaffordable" or "seriously unaffordable".
The report cites restrictive land use regulations, high infrastructure fees, and a lengthy and complicated approval process as reasons for the lack of affordability.
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