Dissatisfaction with housing costs has hit a record high across rich countries, soaring above other worries such as healthcare and education.
Half of respondents in OECD nations are dissatisfied with the availability of affordable
Concern over housing costs hits record high across rich nations
Financial Times
4 mins to read
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Rents, meanwhile, have surged at a time when higher prices for other essentials, such as food and fuel, have been cutting into disposable incomes.
Researchers partly blame a lack of construction of new homes for the affordability crisis.
“Basically, we haven’t built enough,” said Willem Adema, a senior economist in the social policy division of the OECD, adding that developers were often targeting wealthier households, exacerbating the strain on those on lower incomes.
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Andrew Wishart, an analyst at Capital Economics, said: “Population trends can move much faster than you can change housing supply.”
Discontent over housing is set to play an important role in elections this year, notably in the US, where voters head to the polls in November.
The average house price is now almost 38% higher than when US President Joe Biden took office in January 2021, according to the Case-Shiller index.
Research by Harvard University’s Joint Centre for Housing Studies showed the monthly housing payment on a median-priced home with a low-deposit loan, as favoured by first-time buyers, was now US$3096 ($5005) compared with about US$2000 in January 2021.
Meanwhile, many existing homeowners have locked in 30-year mortgages at ultra-low rates, and as a whole are paying less on servicing debt as a percentage of income than at any time since 1980, according to Harvard.
The Gallup data, based on responses from more than 37,000 people in the 37 countries that make up the OECD’s club of wealthy states, show discontent over housing affordability is highest among under-30s and those aged 30 to 49, many of whom may be trying to get on the property ladder.
Some 44% of over-50s were dissatisfied with housing across the OECD countries, but the proportion rose to 55% for the under-30s and 56% for those aged 30 to 49.
In England, house prices are now eight times the average annual wage, according to official statistics.
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That is more than twice the ratio seen when the last Labour government took office in 1997. The number of households living in temporary accommodation in England is also at a record high.
About 30% of the population in rich countries were dissatisfied with the healthcare system, education and public transport.
Unhappiness with the standard of living increased in 2023, but only slightly, rising from 24% to 25%.
The Gallup World Poll is compiled annually, with the 2023 survey based on responses from 145,702 people in 142 countries and weighted according to population.
Respondents are asked about a range of socio-economic and political issues.
Some countries where 2024 data is already available have shown a further increase in dissatisfaction with housing this year.
In Germany, the share of those unhappy about the availability of affordable housing rose to a new high of 46%, up from 42% in 2023 and more than double the levels up to 2012.
In Spain, the share of those dissatisfied with housing rose to 62% in 2024, the highest since the financial crisis.
Written by: Valentina Romei and Sam Fleming in London. Additional reporting by Janina Conboye in London.
© Financial Times
