A recent study conducted by Chapman University and the Frontier Centre for Public Policy has revealed that five U.S. cities are considered "impossibly unaffordable" when it comes to housing, placing them among the most expensive markets in the world. The researchers analyzed 94 major cities in eight countries and identified the least affordable housing market in the U.S. as San Jose, California. Surprisingly, Buffalo was named as one of the most affordable cities globally.

The study found that the housing affordability gap between housing costs and income has widened since the pandemic, leading to a cost-of-living crisis for many American families. The rankings were based on each metro's price-to-income ratio, with San Jose ranking as the most unaffordable housing market in the U.S. and the fourth most unaffordable in the English-speaking world.

California, in particular, was heavily represented on the list, with four of the top 10 least affordable housing markets located in the state. Los Angeles, San Francisco, and San Diego all ranked high on the list, alongside Honolulu, the only city outside of California ranked near the top.

The report highlighted land use policies as a significant factor contributing to the housing affordability crisis, with artificial restrictions on housing supply driving up land prices. These policies, which may be promoted as progressive, have regressive impacts in terms of social equity, according to Joel Kotkin, Director for Chapman's Center for Demographics and Policy.

While the study shed light on the challenges faced by many U.S. cities, it also highlighted some positive findings. Among the nearly 100 cities analyzed, Pittsburgh emerged as the most affordable housing market, followed by Rochester and St. Louis. Cleveland, Buffalo, and Detroit were also among the top-ranking cities in terms of affordability.

On a global scale, Hong Kong, China; Sydney, Australia; and Vancouver, Canada stood out as the three least affordable housing markets. However, the study revealed that nine out of the ten most affordable cities were located in the U.S., offering some respite for American residents.

With home sales at historic lows and prices reaching record highs, the housing shortage has become a pressing issue. A separate Zillow report indicated a deficit of 4.5 million homes in the U.S., further contributing to the soaring prices even as mortgage rates remain elevated.

As the cost of housing outpaces income growth in high-income nations, the report suggests a need for reevaluating housing policies and addressing the underlying factors driving the housing affordability crisis.