That’s my new marketing campaign. It helps me to proactively channel my irritation with those that say they’re moving to Canada if their candidate doesn’t get elected. (Personally, I would opt for somewhere warmer for a change…maybe Costa Rica or New Zealand? I doubt my wife would be on board though.)
But seriously, moving to Canada? Is it going to get that bad here?
Well, I hope not. Regardless of who gets elected, I think we still have it pretty good here. I thought it would be fun to look at how we’re doing compared to the rest of the world—at least from a home-affordability standpoint.
The U.S. is the most affordable county to own a home in the world!*
I was a little surprised too! But when you look at the average mortgage amount as a percentage of income, the U.S. is the lowest in the world and it’s not even close.
There isn’t really a world-wide standard used to calculate this, but I went with numbero.com’s methodology, which seemed reasonable. They use the average take-home salary to estimate family income. To figure out the housing expense, they calculate the mortgage payment amount on a house of 90 square meters (about 968 square feet), using the average cost per square foot **. As you can see in the graph below, the U.S. is the most affordable with 24.6% (lower is better). Our economic system must be somewhat effective!
Now obviously regional real estate markets can vary greatly within each county. I can’t speak to Hong Kong, but within the U.S., the markets range drastically from San Francisco to Cleveland. Clearly the Midwest is more affordable than the coasts.
When you look at our market (the Twin Cities), the news keeps getting better. According to realeaste.usnews.com, the Twin Cities ranks #13 in their list of The 20 Best Affordable Places to Live in the U.S.! The writer cites the solid job market for this high ranking, with an increase in tech startups moving to the area. The solid and diverse job market leads to a relatively stable housing market.
So in summary, we’re living in one of the more affordable metro areas within the most affordable country in the world—not so bad.
Focus on the good
With everything going on, it’s nice to step back and look at the big picture. Sometimes I get discouraged while listening to our politicians and thinking about our country’s problems. But when I’m out and about that all kind of goes away. I continue to be surprised at how positive and gracious people are, whether clients, lenders, or other agents.
Maybe things aren’t that bad after all. While Canada seems like a nice place to visit, it’s not for me. My plan is to stay here and sell some real estate.
*Technically Saudi Arabia was #1 with 20.14%, but I didn’t include it in my graph because it seemed like an outlier and I don’t think we’re able to travel there anyway!
**Assumption is 100% financed on a 20 year mortgage.