World Economic Forum warns housing unaffordability will persist through 2040

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A World Economic Forum report, with input from Marsh, says housing unaffordability will be a defining economic and health challenge through 2040 and urges intergenerational solutions. Analysis across 21 countries found monthly mortgage and rent payments exceed the 33% affordability threshold in 20 countries, and exceed 100% of average monthly earnings in Nigeria, Colombia, India, Indonesia, Viet Nam, Brazil and Mexico. The report links high housing costs to cramped housing, financial stress, higher medical expenses and risky financial behavior among young adults, and highlights pilot models in Spain, London and Hong Kong as possible paths forward.

Housing costs exceed affordability in 20 of 21 countries studied.