Australian house prices are among the world’s most expensive when measured against incomes and rents, according to the Bank for International Settlements (BIS).

According to the Basel-based BIS’s latest quarterly review of global housing, Australia was the second most expensive market on a seasonally and inflation-adjusted index of advanced economies, behind Norway and ahead of Great Britain and Sweden.

On a price-to-rent ratio, which assesses the theoretical ability of rental yield to cover mortgage costs, Australia is also among the world’s highest-cost housing markets.

The same goes for the price-to-income ratio, which reflects affordability.

Source: Fairfax Media