Home Affordability Gap Widens Across Asia-Pacific

Just seven of 51 Asia-Pacific markets offer home attainability despite income growth and price dips in some segments.

According to the Urban Land Institute (ULI) Asia Pacific’s 2025 Asia Pacific Home Attainability Index, the divide between home ownership and renting is widening.

The fourth edition of the report assessed 51 market segments across 41 major cities.

Home attainability in the report means median home prices that are no more than five times median annual household income and median monthly rents that are no more than 30 per cent of median monthly income.

ULI Asia-Pacific chief executive Alan Beebe said four years of analyses painted a consistent and concerning picture that “attaining affordable and adequate housing remains out of reach for far too many across our dynamic region”.

“While rental markets offer a crucial lifeline, the fundamental challenge of purchasing a home persists, particularly in major economic hubs.

“This year’s index reinforces that solving this requires government policy, innovative financing, embracing new construction technologies, and practical public-private partnerships focused on delivering diverse housing options at scale.”

The report found major cities are the most expensive: just three market segments in major cities across the region offer homes at or less than five times median income: Singapore HDB (public housing) apartments, and apartments in Melbourne and Kuala Lumpur.

Singapore is the only capital city to offer attainable homes for purchase.

Hong Kong scored worst for home attainability, the report found.

While falling property prices have made apartments marginally more affordable, they were 23.4 times median annual household income in 2024, compared with 26.5 times in 2022.

▲ Apartments in Kuala Lumpur were one of just three segments in major cities with homes at or less than five times median income.

China price drops have boosted attainability but provided little comfort for buyers—they remain above 10 times household income in all cities covered in the report and above 20 times in Beijing, Shanghai and Shenzhen.

“The prospect of prices falling further has kept buyers out of the market,” the report said.

It said interest rate cuts had boosted attainability in some markets, including Australia, Korea and China.

However, the interest rate outlook for the region and the world has become more uncertain in 2025, so the cost of borrowing may remain elevated in many markets.

The report said the multifamily (build-to-rent) residential sector was relatively undeveloped in the Asia-Pacific region (except Japan) but growing in China and Australia.

“This report shows that rental housing is more attainable, thus boosting supply will improve attainability,” it said.

“Furthermore, renting remains very affordable in many markets, with rents less than 25 per cent of monthly income.

“This suggests potential for the real estate industry to deliver more rental properties and the potential for boosted returns.”

There was also increasing demand for related rental residential sectors, such as senior living, co-living and student accommodation, the report said, which could provide additional opportunities for real estate investors and developers, adding to overall housing attainability.