World’s Most Ex­pen­sive Cities in 2017

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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.

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