US is the 5th Most Expensive Housing Market in the World A New Study Reveals the Numbers

Placing a miniature houses on top of a coins stack against a wooden background. Building a step by step mortgage plan

New research conducted by Compare The Market analyzing average house and rent prices in Organization for Economic Cooperation and Development (OECD) countries reveals the most expensive countries to rent and buy property in.

According to the study, the United States ranks 5th among the 10 most expensive OECD countries for both renting and buying homes, with rent and mortgage costs averaging $1,971 and $2,328 per month, respectively. That's a difference of just 18.1% - or about $357 per month - which is the 22nd highest difference between rent and buying in the world.



Rank



Country

Average rent (three bedrooms)

Estimated monthly mortgage payment

Difference between house prices and rent

1

Luxembourg

$3,017

$4,558

51.1%

2

Switzerland

$2,599

$2,961

13.9%

3

Iceland

$2,036

$2,610

28.2%

4

Ireland

$2,028

$2,358

16.3%

5

United States

$1,971

$2,328

18.1%

6

Australia

$1,763

$2,022

14.7%

7

Norway

$1,708

$1,958

14.6%

8

Netherlands

$1,698

$2,221

30.8%

9

New Zealand

$1,656

$2,234

34.9%

10

Denmark

$1,651

$2,030

23.0%

Only four European countries outrank the US in terms of housing costs; Ireland, Iceland, Switzerland and the most expensive, Luxembourg. Luxembourg is notorious for its high cost of living, which is clearly reflected in its house and rent prices. Average rent and mortgage costs in Luxembourg reach $3,017 and $4,558 per month, representing a price gap of 51.1%, the largest price difference out of all the OECD countries.

Neighboring Switzerland ranked second, with a considerable drop in average monthly rent and mortgage costs of $2,599 and $2,961, respectively. Iceland came in third, with the average cost of rent hitting $2,036 a month and monthly mortgage payments of $2,610.

It's interesting to note that Finland and Italy were the only countries to have a negative price difference margin - meaning that it is actually cheaper to buy a house in either of those countries than it is to rent one. South Africa held the lowest price difference at 0.8%, with rent prices averaging at $865 and the average mortgage payment being $872 - a price difference of just $7. 

You can view the research and full 38-nation ranking here.

Related Articles

An artistic art collage. A house on one side of the scales, and money on the other side of the scales. The concept of buying, renting, or mortgaging a house.

Fall Market Watch 2023

New York & New Jersey Continue Their Wild Ride

Savvy investor meticulously real estate weighs interest rates, investment opportunities, and loan options, seeking to maximize their financial well-being. banking, buy, debt, money, mortgage, business

The Housing Market Going Into 2024

Familiar Challenges, Possible Improvements

line graph comparing wage growth versus housing prices since 2000

88 Working Hours Per Week

That's What it Takes to Buy a Median-Price Home in the NYC Metro

Real estate developer and managing property investment concept. Selective focus wooden houses with question mark on wood table

Another Year of Modest Growth for U.S. Condos & HOAs in 2024

CAI Housing Experts Weigh In

hard to buy a house. rising property, real estate market

The Growing Housing Crisis

'No Easy Answers,' Says NHC Head

Privately-Owned Housing Increased in April

Privately-Owned Housing Increased in April

...But Single-Family Ownership Declined