World’s Most Expensive Cities in 2017
9.san francisco Median Multiple: 9.3
San Francisco’s location on a peninsula means that its only real option for adding housing supply is to grow vertically. However, in most of San Francisco the zoning laws prohibit any building over 40 feet tall. Another problem seems to be the city’s priorities in the housing that does get built, having met and nearly doubled the amount of luxury housing in demand and yet only providing 18.1% of necessary middle-class housing.
8.los angeles Median Multiple: 9.3
Los Angeles suffers from an extremely low vacancy rate of 3.1%, the lowest in the United States as of 2016. The luxury high rises are helping to meet demand, but the city is in desperate need of more middle class housing. In past years housing prices have risen consistently all over the city, not only in areas with increased development, which points to the lack of vacancy as the underlying issue.
7.honolulu Median Multiple: 9.4
Being an island, Hawaii of course has very limited space for development and expansion as well as some of the most restrictive land use laws to protect the natural landscape. Development can take years to complete and meanwhile people need homes. Today Honolulu has become one of the most desirable places for the wealthy internationals who determine the housing prices, thereby the lack of affordable housing for locals.
6.Melbourne Median Multiple: 9.5
Melbourne is projected to overtake Sydney as the largest city in Australia by 2050. One thing that makes Melbourne particularly expensive to live in is that it’s particularly expensive to build in, thanks in part to a long history of powerful trade unions, which have protected workers’ rights but also increased construction costs. Another factor contributing to the high construction costs is Australia’s geographic isolation, as there’s less private sector competition to drive prices down and many construction materials must be imported.
5.san Jose Median Multiple: 9.6
In San Jose, developers see housing more as an investment than as a resource for the city’s population. Its proximity to Silicon Valley and therefore the increase in demand and housing costs and interest from many international migrants are likely contributors to the amount of short term investments in property in the area, beneficial to the developers but not actually solving the local population’s need for housing.