34 Years of Income Needed to Buy a Home in HCMC
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Home Ownership in HCMC Out of Reach for Many
In early 2024, data from Numbeo—the world’s largest cost-of-living database—revealed that it takes an average of 34 years of income for a worker in Ho Chi Minh City (HCMC) to buy an apartment. This staggering house price-to-income ratio (HPR) ranks the city fifth globally for housing unaffordability.
By comparison, the global average is 15 years, and Vietnam’s national average is around 25–26 years. In HCMC, where average apartment prices range from VND 77–85 million per square meter, this gap continues to widen as property values soar while income remains relatively stagnant.
Hanoi fares slightly better, with residents needing approximately 24.7 years of income to purchase a home—still significantly above global norms. The HPR index, which divides average home price by annual household income, is a widely used metric to evaluate housing affordability. It is endorsed by the World Bank and the United Nations as a benchmark for sustainable urban development.
Market Prices Rising, Income Lags Behind
According to CBRE, HCMC’s average apartment price is now close to USD 3,000 per square meter (around VND 75 million), while annual per capita income is estimated at only USD 7,500. This results in a price-to-income ratio of 2.7—higher than Singapore and many regional peers.
Additional research from Batdongsan shows that based on average 2024 household income, it would take a 30-year-old worker nearly 26 years to afford a VND 3 billion mid-range apartment, assuming stable interest rates (4.5%) and no further price inflation. In 2023, that figure was 23.5 years.
Supply Shortages and Rising Development Costs
The root causes of HCMC’s housing crisis are multi-layered. Experts point to skyrocketing input costs, limited land availability, and lengthy legal procedures as primary culprits behind the price surge.
The One Mount Group reports that average housing prices in HCMC exceed VND 88 million per square meter, while available land for new projects has been largely exhausted. Complicated approval processes and construction delays further restrict the supply of new housing.
Urbanization has rapidly increased housing demand, but supply has not kept pace. Data from the HCMC Department of Construction reveals that in 2024, only six commercial housing projects were approved to raise capital, offering a total of 3,800 apartments. The average selling price? A staggering VND 9.4 billion per unit.
Policy Recommendations to Bridge the Affordability Gap
To address the crisis, housing experts suggest several key strategies:
Accelerate affordable housing supply: Streamline procedures for approving and launching low-cost housing projects, especially social housing.
Revise urban land use: Incentivize vertical development and mixed-use zoning to maximize available space in inner-city areas.
Improve transport infrastructure: Facilitate suburban housing development by expanding public transit and reducing commuting costs.
Support renters: Offer tax incentives or subsidies to renters and developers investing in long-term affordable rental units.
CBRE also recommends rethinking housing finance models, suggesting creative solutions such as rent-to-own programs or government-backed mortgage schemes targeted at first-time buyers.
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