Jakarta, Indonesia Sentinel — Housing prices in Indonesia are becoming increasingly unaffordable for young people, as rising property costs far outpace the growth of average wages. According to recent reports, Indonesia listed among World’s Least Affordable Housing Markets for young people.
According to CNBC Indonesia, a recent report placed Indonesia among the top five countries with the most expensive housing markets globally, surpassing even Singapore and Sydney, cities renowned for their high cost of living.
The report, released by Bestbrokers.com, analyzed housing affordability in 62 countries in 2024. It compared house prices per square meter in U.S. dollars as of September 10, using data from Numbeo, and juxtaposed these figures with average income levels to identify the least affordable housing markets relative to wages.
Contrary to expectations, the report revealed that the world’s most expensive housing markets are not found in advanced economies with high living standards. Instead, they are concentrated in countries with lower economic performance.
Turkey ranked as the least affordable country to buy a home in 2024, with a house price-to-income ratio of 81.45%. Indonesia followed closely, with a ratio of 48.35%, placing it among the most challenging markets for homebuyers.
Here is the full list of the top 10 least affordable housing markets in 2024, as reported by Bestbrokers.com:
- Turkey: Average home price is approximately Rp39 million per square meter. The house price-to-income ratio stands at 81.45%.
- Nepal: Average home price is Rp23.4 million per square meter. The house price-to-income ratio is 59.04%.
- India: Average home price is Rp22.9 million per square meter. The house price-to-income ratio is 49.86%.
- Indonesia: Average home price is Rp17 million per square meter. The house price-to-income ratio is 48.35%.
- Armenia: Average home price is Rp45 million per square meter. The house price-to-income ratio is 46.12%.
- South Korea: Average home price is Rp166 million per square meter. The house price-to-income ratio is 38.71%.
- Peru: Average home price is Rp25 million per square meter. The house price-to-income ratio is 33.01%.
- Dominican Republic: Average home price is Rp22 million per square meter. The house price-to-income ratio is 29.06%.
- Brazil: Average home price is Rp22 million per square meter. The house price-to-income ratio is 28.10%.
- Chile: Average home price is Rp36 million per square meter. The house price-to-income ratio is 28.01%.
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The findings shed light on the growing financial strain faced by young Indonesians and highlight broader global challenges in housing affordability.
