Housing Affordability Index (HAI) 2026

The latest Housing Affordability Index finds that some of the world's wealthiest nations are also its least affordable places to live. The full ranking will be presented at the University of St. Gallen on May 13, 2026.

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<div class="sf-perspective"> <h3>SwissForecast Perspective</h3> <p>The latest Housing Affordability Index reveals: some of the world's wealthiest nations are also its least affordable places to live. The full ranking will be presented on May 13, 2026, at the University of St. Gallen.</p> </div> <h2>The Housing Affordability Index in the EQx Framework</h2> <p>The latest Housing Affordability Index (HAI), compiled by the Swiss-based economic intelligence firm Swissforecast GmbH for the Elite Quality Index (EQx) project at the University of St. Gallen (HSG), delivers a striking and at times counterintuitive picture of global housing conditions. The new index finds that some of the world's wealthiest nations are also its least affordable places to live, while several mid-income European economies lead the global ranking.</p> <p>The Housing Affordability Index is one of <strong>149 indicators</strong> that make up the EQx, a comparative political economy framework that measures whether national elites create sustainable value for society or extract it.</p> <h2>Methodology and Components</h2> <p>The HAI developed by Swissforecast GmbH goes beyond conventional price-to-income ratios. As described in the EQx2024 report, the model incorporates three interlocking variables: household income in USD at purchasing power parity (PPP), normalized rent per square metre, and the home ownership percentage rate as a moderating factor.</p> <h2>The Logic of the Model</h2> <p>A very high homeownership rate is not treated as a sign of prosperity — rather, it can indicate that renting is unaffordable or unavailable. Conversely, countries with lower ownership rates are assessed primarily on whether their rental markets are accessible relative to incomes.</p> <div class="sf-data"> <p><strong>Key Insights</strong></p> <ul> <li>The HAI integrates household income, rental prices, and homeownership rates into a subtle, multidimensional model</li> <li>High ownership rates can indicate unaffordable rental markets, not prosperity</li> <li>Many wealthy nations perform poorly on the rent-to-income dimension</li> </ul> </div> <h2>2026 Results and Geographic Patterns</h2> <p>The full 2026 HAI ranking will be presented at the official EQx launch event on <strong>May 13, 2026</strong>, at the University of St. Gallen (HSG), and will also be available on the EQx project website.</p> <p>The ranking reveals a clear geographic pattern: <strong>Western and Southern European nations dominate the top of the table</strong>, while several major Anglo-Saxon economies and high-cost Asian hubs cluster at the bottom — underscoring the breadth of the global housing challenge.</p> <h2>About the Elite Quality Index</h2> <p>The Elite Quality Index (EQx) is a comparative political economy index published annually by the Foundation for Value Creation, with academic leadership at the University of St. Gallen (HSG), Switzerland.</p> <p>The Housing Affordability Index results underscore that housing affordability is a multifaceted phenomenon extending far beyond simple price-to-income ratios. For the construction industry and its suppliers, these findings are directly relevant: markets with declining affordability typically show increased political pressure for social housing construction, changing building permit volumes, and shifts in demand for construction materials.</p> <div class="sf-perspective"> <h3>Procurement Takeaway</h3> <p>For procurement planners: the Housing Affordability Index is a leading indicator for construction demand. Declining affordability creates political pressure for housing programs — directly affecting material prices and supply chains. Markets with acute housing crises are potential growth markets for construction suppliers.</p> </div>

Published

2026-03-11