Global House Prices and City Rankings — 2026-09-18
Global housing markets are diverging sharply, with Australia facing a deepening correction as prices fall in over 90% of suburbs, while Japan reports a fifth consecutive year of land price increases driven by urban demand. In the US, mortgage rates have climbed to near 7%, exacerbating affordability crises, while new rankings highlight London's appeal being hurt by housing costs despite its top-tier global city status.
Global House Prices and City Rankings — 2026-09-18
Top developments
Australia faces prolonged housing downturn with prices falling in 90% of suburbs
Recent data from Cotality reveals that property prices are now declining in more than 90% of Australian suburbs, prompting economists to predict further falls of up to 10% as interest rates remain high. HSBC analysts warn that a peak-to-trough decline of 13% could reduce GDP by approximately 1%, aiding the Reserve Bank of Australia in pushing inflation back toward its 2-3% target. This marks a significant shift from the previous year's market dynamics, signaling a potential multi-year slump that may not rebound until 2028 if rate cuts are not imminent.
US mortgage rates hit 19-month high, straining affordability
Mortgage rates in the United States have climbed for the fourth consecutive week, driving the average long-term home loan rate to just below 7%, its highest level in over 19 months. This surge is further constraining an already bleak housing market, where the count of major metros experiencing year-over-year home price declines has shrunk, but the recent rate jump threatens to reignite softening. Analysts note that while some markets show mild gains, the overall affordability crisis persists, with 81% of US housing markets rated as overvalued.
Japan records 5th consecutive year of land price rises
Japan's Ministry of Land, Infrastructure, Transport and Tourism announced on September 15 that national land prices (standard land prices) rose by 1.5% year-on-year, marking the fifth consecutive annual increase. Residential land prices rose by 1.0%, while commercial land prices saw a stronger 2.9% increase, driven by robust demand in major urban centers like Tokyo and Osaka. However, a clear bifurcation is emerging, with construction cost inflation pushing buyers toward suburbs in cities like Nagoya and Sapporo, while population-declining regions continue to see price drops.
London’s global appeal hurt by housing costs despite top rankings
London retains its position at the pinnacle of global city rankings due to economic strength and labor market stability, but its appeal is increasingly "hurt" by the high cost of housing. New analyses indicate that while London shines in overall livability and business metrics, the prohibitive cost of residential property is becoming a significant deterrent for potential residents and businesses. This contrasts with other European hubs like Dublin and Zurich, which also feature in the top ten but may offer different affordability profiles.
Local view
Japan: Local media such as Nikkei and Rakumachi are highlighting the "polarization" in land prices, noting that while Tokyo's core areas see continued appreciation, suburban areas in other prefectures are struggling. The Ryukyu Shimpo reports that Okinawa saw a notable rise, with residential land prices up 5.3%, ranking second nationally, driven by tourism and relocation demand.
Germany: German outlets like WirtschaftsWoche are focusing on the disparity in apartment prices based on size, noting that smaller units in Berlin, Hamburg, and Munich are becoming disproportionately expensive compared to larger properties. The Euronews German edition emphasizes that for many Europeans, owning a home is becoming increasingly unrealistic, with rental living becoming the new normal.
Context & numbers
- BIS Data: The Bank for International Settlements reported that Portugal had the largest year-over-year increase in real residential property prices in Q1 2026 at 15%, followed by North Macedonia (13%) and Bulgaria (11%). Conversely, China saw the sharpest drop at -7%.
- US Affordability: A family earning the median income ($106,800) needed 34% of their income to cover mortgage payments on a median-priced home in Q2 2026, according to NAHB/Wells Fargo data.
- Canada: The national housing price index hit its lowest level since April 2023, with average prices falling for the eighth month in nine.
- UK Inflation: UK inflation rose to 3.1% in August, driven partly by soaring motor fuel costs, while London house prices fell and rents accelerated.
On the radar
- RBA Rate Decisions: Markets are closely watching the Reserve Bank of Australia for signs of rate cuts, which analysts say are necessary for any potential housing market rebound before 2028.
- US Mortgage Trends: Continued monitoring of US mortgage rates, which are hovering near 7%, to see if this triggers a broader correction in the currently stable US housing markets.
- OECD Housing Data: Upcoming OECD releases will provide updated affordability metrics for 39 member states, potentially confirming the trend of homeownership becoming less accessible in advanced economies.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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