3 Countries Where Buying a Home Breaks the Bank and 6 That Don't

1. United Kingdom: Soaring Prices and Stalled Dreams

In 2024, the United Kingdom remains one of the toughest housing markets for hopeful buyers. According to the UK Office for National Statistics, the average house price reached £291,000 in April 2024, a 4.2% increase from the previous year.

London continues to be the epicenter of this crisis, with average prices in the capital now exceeding £550,000. The Bank of England’s interest rate hikes have pushed mortgage rates above 5%, squeezing affordability further.

First-time buyers now face an average deposit of over £60,000, a sum out of reach for many under-35s. The Home Builders Federation warns that housing supply growth has stalled, exacerbating the shortage.

As a result, the dream of homeownership has become a distant prospect for millions, fueling political debate as the 2025 general election approaches.

2. Australia: The Great Housing Crunch

Australia continues to grapple with an unprecedented affordability crisis in 2024. CoreLogic’s latest report reveals the median national property price hit AUD $776,000 in March 2024, with Sydney topping AUD $1.13 million.

The Reserve Bank of Australia’s recent interest rate increases have pushed average mortgage repayments up by 34% since 2022. Rental prices have also surged, rising 11% year-over-year in major cities, according to Domain’s annual rental report.

The shortfall in new housing supply, coupled with record migration numbers, has kept demand sky-high. More than 40% of young Australians now expect never to own a home, per a 2024 survey from Finder.

The government’s homebuyer assistance schemes are criticized as insufficient, unable to bridge the widening gap between wages and property prices.

3. Canada: When Wages Can't Catch Up

Canada’s housing market remains one of the least affordable globally in 2024. The Canadian Real Estate Association reported a national average home price of CAD $703,446 in April 2024.

In Vancouver and Toronto, the averages stand at CAD $1.2 million and CAD $1.1 million, respectively. RBC’s Housing Affordability Index shows that homeowners in these cities spend over 60% of their household income on mortgage payments, taxes, and utilities.

The Bank of Canada’s 2024 rate hikes haven’t cooled the market as expected, with bidding wars persisting in key urban centers. New government measures, such as foreign buyer bans and vacancy taxes, have produced only marginal effects.

Meanwhile, Statistics Canada notes that household debt levels hit a record high, with mortgages forming the bulk of liabilities. Homeownership is now out of reach for many millennials and Gen Z Canadians, fueling a nationwide debate about housing as a basic right.

4. Portugal: Europe’s Affordable Gem

Portugal stands out as one of Europe’s most affordable homeownership destinations in 2024. The Instituto Nacional de Estatística reports the national median house price was €155,000 in Q1 2024, with rural and inland regions offering properties for under €100,000.

Even in Lisbon, the capital, the average property price is about €385,000—significantly lower than in other Western European capitals. Mortgage rates remain relatively low, with most banks offering fixed rates around 3.5% as of April 2024.

The Portuguese government’s new housing law encourages foreign investment while protecting local buyers, keeping the market stable. Growing digital nomad and expat communities have flocked to Portugal, drawn by its affordability and favorable climate.

As a result, the country maintains a balanced market where locals and newcomers can still realistically buy a home.

5. Poland: Stability Amid Growth

Poland’s property market continues to offer relative affordability and stability. According to the Polish Central Statistical Office, average apartment prices in major cities like Warsaw were PLN 13,700 per square meter in early 2024, translating to around €120,000 for a 70-square-meter flat.

Mortgage interest rates have stabilized at 6.5% following reductions by the National Bank of Poland. Wages have grown steadily, keeping pace with property prices, and the government’s “Safe Credit 2%” program for first-time buyers has boosted access for young families.

Foreign investment remains moderate, with no signs of the speculative bubbles seen in Western Europe. The combination of reasonable prices, rising incomes, and targeted government support makes Poland a viable destination for those seeking affordable homeownership in the EU.

6. Turkey: Opportunities Despite Economic Headwinds

Turkey’s housing market remains accessible to many, despite recent economic turbulence. According to the Turkish Statistical Institute, the national average house price in April 2024 was TRY 2.8 million (about $90,000 USD at current rates), even in Istanbul, the average remains under $150,000 USD.

While inflation and currency fluctuations have affected the broader economy, property remains a relative safe haven for locals and foreigners alike. The Turkish government continues to offer residency incentives for property buyers, encouraging overseas investment.

Local wages, while pressured, still allow many Turks to consider homeownership, especially outside the largest cities. The construction sector’s resilience ensures a steady flow of new housing, preventing the kind of acute shortages seen elsewhere.

7. Mexico: A Buyer’s Market for Locals and Expats

Mexico offers a diverse and affordable property market in 2024. According to the Mexican Association of Real Estate Professionals (AMPI), the average price of a home nationwide was MXN 1.6 million (approximately $92,000 USD) in Q1 2024.

Even in Mexico City, the country’s most expensive market, the average stands at around $140,000 USD. Mortgage rates, while rising slightly to an average of 10.5%, remain manageable thanks to innovative lending programs.

Both locals and foreign buyers continue to find value, especially in coastal and up-and-coming urban areas. The Mexican government’s INFONAVIT program assists millions of workers in securing affordable loans, supporting homeownership rates.

This blend of policy, price, and market diversity makes Mexico a practical choice for buyers on a budget.

8. Greece: Affordable Living in the Mediterranean

Greece’s housing market has become a magnet for budget-conscious buyers in 2024. The Bank of Greece reports the average price of an urban apartment at €1,800 per square meter, with entire village homes available for under €70,000 in rural regions.

Mortgage rates have remained steady at around 4%, supported by the European Central Bank’s policies. The government’s “Golden Visa” program continues to attract foreign investment, driving modest price growth without overheating the market.

Young Greeks and expats alike have found opportunities, especially since wage growth has begun to keep pace with inflation. The ongoing recovery from the financial crisis has created a buyer’s market in many areas, making homeownership a realistic goal for a broad segment of the population.

9. South Africa: Accessible Homes in a Dynamic Market

South Africa remains one of the world’s most accessible housing markets in 2024. Lightstone Property’s national report shows the average home price at ZAR 1.4 million (about $75,000 USD), with significant regional variations.

Johannesburg and Cape Town have pricier neighborhoods, but many suburban and rural areas offer homes for a fraction of that cost. Mortgage interest rates, currently at 11.75%, are higher than global averages, but local banks provide flexible terms and first-time buyer incentives.

The South African government’s FLISP (Finance Linked Individual Subsidy Program) assists low-income earners, expanding access to homeownership. Despite challenges such as economic instability and power shortages, the overall affordability and variety of options keep South Africa a strong contender for buyers seeking value in 2024.