Insider Monkey

30 Countries with Most Affordable Housing in the World

Sobiya Fahad
10 min read

In This Article:

This article covers 30 Countries with Most Affordable Housing in the World and provides an in-depth overview of the housing markets in various countries that have been facing a decline in demand due to high mortgage rates. For a quick overview of the top 10, read our article 10 Countries with Most Affordable Housing in the World. 

Buying a home has been one of the most sought-after life goals around the world. But it's becoming harder to own a house lately amid rising costs. Housing prices vary widely across the globe, with some markets charging substantially more than others. However, there are also countries with affordable housing.

Recently, housing prices have been falling in many OECD countries, mainly due to central banks raising interest rates, which has made it more expensive to borrow money to buy a home.

As a result, countries such as Australia, New Zealand, and Canada, are seeing a decline in housing demand due to increased mortgage rates. In Europe, Luxembourg, the Netherlands, and Norway are also experiencing rising mortgage prices.

Since the pandemic, the global cost of construction has increased by 28%. As of December 2022, there also has been a reported increase of 32% in the costs of primary construction materials, with copper and cement prices rising by 3% and 9% respectively. 

On the other hand, it is believed that by the end of 2023, interest rates will stabilize, causing the fluctuation in mortgage rates to come to a stop. The US housing market could be headed for a positive change in the long term. Warren Buffet has injected an investment of more than $700 million into three major housebuilding companies: D.R. Horton Inc., NVR Inc., and Lennar Corp.

The Changing Landscape of the Housing Market in the US

Warren Buffet’s company Berkshire Hathaway (NYSE:BRK.A) made a sizable investment of more than $700 million in homebuilding stocks. adding D.R. Horton Inc. (NYSE:DHI), NVR Inc. (NYSE:NVR), and Lennar Corp.(NYSE:LEN) to his portfolio.

The three companies that Warren Buffett recently invested in are all players in the US housing market, with D.R. Horton (NYSE:DHI) being the largest residential builder in the country. Meanwhile, Lennar (NYSE:LEN) sells single-family and detached homes, with a market capitalization of $36.23 billion. NVR (NYSE:NVR), a supplier of structural building components, is valued at $20.04 billion.

As of the end of June 2023, Berkshire Hathaway owned 5,969,714 shares of D.R. Horton, 152,572 shares of Lennar, and 11,112 shares of NVR.

30 Countries with Most Affordable Housing in the World
30 Countries with Most Affordable Housing in the World

Methodology

We created a list of the 30 Countries with Most Affordable Housing in the World by evaluating two metrics: affordability and profitability of ownership. We collected data from the OECD Housing Prices report to rank each country on these two metrics.

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