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This Bay Area city is considered one of most 'unaffordable' in the world

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Published  June 14, 2024 10:16am PDT
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KTVU FOX 2

San Jose allowing homeowners to sell ADUs as separate property

San Jose is the first city to do this. People in support of the law say it brings much-needed housing options to the area.

A South Bay city has placed in the top five most "unaffordable" cities in the world, according to a new report from Chapman University. 

We've heard it before: the Bay Area is one of the most expensive places to live in the United States. However, the latest Demographia International Housing Affordability report says San Jose is one of the top five most challenging places to eke out a living, not just here in the U.S., but around the world. 

The least affordable market in the English-speaking world last year was Hong Kong, according to the report. In the U.S., there were five cities that made the list – mostly on the West Coast. Four of them are right here in the Golden State. 

Top 10 ‘impossibly unaffordable' cities, according to report

  1. Hong Kong (16.7)
  2. Sydney, Australia (13.3)
  3. Vancouver, Canada (12.3)
  4. San Jose, California (11.9)
  5. Los Angeles, California (10.9)
  6. Honolulu, Hawaii (10.5)
  7. Melbourne, Australia (9.8)
  8. San Francisco, California (9.7)
  9. Adelaide, Australia (9.7)
  10. San Diego, California (9.5)
  11. Toronto, Canada (9.3)

When comparing the least affordable U.S. city, San Jose, to the most affordable U.S. city, Pittsburgh, the numbers aren't great. Pittsburgh is nearly 75% more affordable than San Jose. 

Most affordable North American cities for housing, according to report

If you're hoping for the most affordable cities in North America, head to the East Coast and Midwest. 

Here are the top 10, according to the report. 

  1. Pittsburgh, Pennsylvania (3.1)
  2. Rochester, New York (3.4)
  3. St. Louis, Missouri (3.4)
  4. Cleveland, Ohio (3.5)
  5. Edmonton, Canada (3.6)
  6. Buffalo, New York (3.6)
  7. Detroit, Michigan (3.6)
  8. Oklahoma City, Oklahoma (3.6)
  9. Cincinnati, Ohio (3.7)
  10. Louisville, Kentucky (3.7)

So what makes these cities so unaffordable? One key thing: the cost of housing.

According to the report, an increase in remote work during the pandemic fueled a demand for housing – particularly in "suburban, exurban and even more remote areas."

"The result was a demand shock that drove house prices up substantially, as households moved to obtain more space, within houses and in yards or gardens," the report states.

Fox Digital contributed to this report.