Editorial | Hong Kong must tackle the ‘demoralising impact’ of unaffordable housing
With a new study underlining how much harder it has become for young people to afford a flat in the private market, the search for solutions should be stepped up
The University of Hong Kong Business School study found the proportion of subsidised homeowners aged 30 to 39 had nearly halved to 16 per cent over the past three decades. The “Hong Kong Economic Policy Green Paper 2026” released on January 14 said a mid-sized private flat today costs more than 18 years of an average household’s combined income. It took only 5.6 years to buy the same 500 sq ft flat in 2002. For subsidised Home Ownership Scheme flats, the time frame grew from 4.2 to 11.1 years.
People aged 30-39 have borne the brunt of the shift. Subsidised housing ownership in the age group fell from just over 30 per cent in 1993 to 16.1 per cent in 2023. Private ownership went from 30.7 to 23.4 per cent. Those living with parents rose from 25.1 to 40.5 per cent.
While public housing has remained affordable, strict asset and income tests for private homes have discouraged many from reaching for the next rung by leaving public housing. Means-tested public rental housing as the “only affordable option” has created a situation with a “demoralising impact” on enterprise and upward mobility, the study noted.