DWS housing affordability review 2025: Salt Lake City and Austin lead globally
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In a detailed analysis of global housing markets, the DWS Housing Affordability Review for 2025 highlights the shifting dynamics of affordability across major cities worldwide. Compiled by Simon Wallace, Global Co-Head of Real Estate Research, and Martin Lippmann, Head of Real Estate Research, Europe, the report offers a comprehensive look at how cities rank in terms of housing affordability, with some surprising shifts and consistent trends.
Salt Lake City and Austin have maintained their positions as the most affordable cities globally, according to the review. “Salt Lake City and Austin remain at the top due to their high income levels and relatively fewer supply barriers,” said Simon Wallace. These two US cities have consistently offered a balance of economic opportunity and affordable living, making them attractive destinations for both residents and investors.
The report underscores the continuing trend of US cities dominating the affordability rankings, with five American cities making it into the top ten. Notably, San Francisco, often perceived as an expensive city, has managed to secure a spot among the most affordable due to recent economic shifts and housing initiatives. However, the report identifies New York and Miami as outliers, where affordability remains a significant challenge.
In contrast, Australian cities have shown a notable improvement in their affordability rankings. Brisbane, Melbourne, and Sydney have climbed the ranks to join the top five most affordable cities globally. “Australian cities have improved their affordability scores, which is a testament to effective urban planning and economic resilience,” remarked Martin Lippmann. This shift reflects a broader trend in the Asia-Pacific region, although the report notes that cities in India and China have pulled down the regional average due to their persistent affordability challenges.
Europe presents a mixed picture in the report, sitting squarely in the middle of the global rankings. Munich emerges as a surprisingly affordable city, defying its reputation as an expensive destination. “Munich’s affordability is a result of strategic housing policies and a strong local economy,” explained Wallace. Conversely, Lisbon, once known for its affordability, is becoming increasingly expensive, partly due to its growing popularity among digital nomads. “Lisbon’s rise in cost reflects its appeal as a vibrant, international city attracting a diverse population,” added Lippmann.
Despite the challenges of affordability, global cities like London, Paris, New York, Berlin, and Tokyo continue to draw people in. These cities, known for their rich culture, career opportunities, and dynamic lifestyles, maintain a magnetic pull that often justifies the high cost of living. “People are willing to pay a premium to live in these cities because of the unique experiences and opportunities they offer,” said Wallace. This trend highlights the complex interplay between affordability and desirability in global real estate markets.
The DWS Housing Affordability Review for 2025 provides a crucial lens into the evolving landscape of global real estate, offering insights into the factors driving affordability and the cities that are navigating these challenges most effectively. As cities continue to adapt to economic and demographic shifts, the report serves as a valuable resource for policymakers, investors, and residents seeking to understand and address the complexities of housing affordability worldwide.