Los Angeles and Sydney grapple with deteriorating housing affordability

A WalletHub study ranking 300 U.S. cities places Los Angeles near the bottom for first‑time homebuyers in 2026, ranking 293 overall and eighth worst among large cities. The city scored 258 on housing affordability, 257 on cost of living and 287 on the rent‑price ratio, with only 21% of home purchases made by first‑time buyers versus a historic average of 40%.

KPMG’s analysis shows Sydney’s home‑ownership rate fell to 59.9% in 2025, the lowest level since the 1950s and below the 60% threshold for the first time since 1954. The decline follows a period where house prices surged faster than wages, pushing median property prices to about 1.26 million Australian dollars and squeezing out many prospective buyers. While other Australian states saw modest gains in ownership rates, Sydney’s affordability challenges have prompted some residents to relocate to cheaper regions.