*This article was originally published on September 6, 2016.
The booming housing market has made Australia look very expensive on a world scale.
While the Global House Price Index has grown about 50% since 2000, Australian house prices have tripled, as this chart from analysis by CLSA shows:
And Australian home prices have grown substantially faster than median household income. Affordability is falling when measured against how many years of income is needed to match the price of a home.
Five out of the 20 least affordable cities in the world are in Australia. The following table from CLSA doesn’t include what is now the most expensive city in China, Shenzhen, with a price-to-income ratio of 23.2 times.