Four Southern California cities rank among the world’s least affordable places to buy a home, according to a recent survey by financial services provider Remitly.
Los Angeles, Long Beach, San Diego, and San José were identified among the five least affordable cities globally when comparing home prices to local incomes. The analysis shows these California cities are even less affordable than international metropolises like New York, Paris, and Singapore.
In Los Angeles, a single buyer earning the average local salary can afford a property worth only 28% of the average home price in the region, according to the Los Angeles Times. The situation is even worse in San José, where residents can afford only about a quarter of the average home price.
“This could mean they would have to stretch themselves financially, often finding larger down payments or asking for financial help from family to be able to make their dream of owning a home a reality,” the Remitly report stated.
The Bay Area also features prominently on the “20 least affordable” list, with San Francisco ranking 10th and Oakland 19th. As of December 2025, the average home price in California was $755,000 – approximately double the cost of a typical mid-tier U.S. home, according to the state Legislative Analyst’s Office.
The study examined property prices, average pre-tax salaries, mortgage factors, interest rates, and down payment requirements across 151 cities in 11 countries. Researchers gathered data from national statistics agencies, real estate databases, and regional datasets.
In stark contrast, Detroit was named the world’s most affordable city for homebuyers, where a person earning the local average salary could afford more than twice the average property price. It was the only U.S. city to make the “most affordable” list, which otherwise featured German and Italian cities.
Michael Lens, professor of urban planning and public policy at UCLA, explained that California’s housing crisis stems from a combination of factors. While the state offers “unparalleled amenities” and a strong job market, “we make it very challenging to build enough homes to satiate the demand,” Lens said.
“That combination of low supply and relatively high affluence for some parts of our country make the baseline of an entry-level home very expensive,” he added.
Detroit’s affordability, meanwhile, reflects decades of population decline driven by white flight and the auto industry’s contraction. The city has high vacancy rates because it was built to house a much larger population than it currently has.