This month’s urban news highlights pressing challenges and innovative responses in cities worldwide, from housing affordability to climate-driven mobility shifts. n n1. Global housing affordability hits historic low, with no major market deemed truly affordable For the first time in over 20 years, none of the major metropolitan housing markets evaluated in the Demographia International Housing Affordability report meet the threshold for affordability. The analysis covers 95 urban centers across eight countries and reveals a deepening crisis that continues to exclude middle-income families from homeownership. Hong Kong remains the least affordable city, with a median multiple of 14.4—indicating homes cost over 14 times the average household income. Australia features prominently in the highest-cost rankings: Sydney follows at 13.8, while Adelaide (10.9), Melbourne (9.7), and Brisbane (9.3) fall into the ‘Impossibly Unaffordable’ category. Perth registers 8.3, classified as ‘Severely Unaffordable’. On the more accessible end, Pittsburgh, Pennsylvania retains its position as the most affordable U.S. market for the fifth year running, with a ratio of 3.2—still categorized as ‘Moderately Unaffordable’. Other relatively attainable locations include Cleveland (3.3), St. Louis (3.5), and the UK’s Middlesbrough & Durham (3.7). Experts point to restrictive land-use regulations—such as greenbelts and urban growth boundaries—as primary drivers of inflated prices. Joel Kotkin, head of Chapman University’s Center for Demographics and Policy, cautions that such policies, though often framed as environmentally progressive, disproportionately burden lower- and middle-income groups, creating a societal divide. The affordability shortfall is fueling a trend of population movement away from high-cost urban centers toward regions with lower living expenses—a shift described as ‘counterurbanization’. 2. Berlin promotes itself as a cooler, less congested travel destination Amid rising heat, overcrowding, and social unrest in cities like Paris and Barcelona, Berlin is positioning itself as a refreshing alternative. With 5.9 million visitors in the first half of 2025, the German capital reports lower hotel occupancy and emphasizes its abundance of green areas, waterways, and shaded public spaces. Christian Taenzler of VisitBerlin noted that Berlin does not face overtourism due to its size and dispersed population. “When locals leave in summer, there’s plenty of room,” he said. Average summer temperatures peak around 25°C, making it appealing to travelers seeking milder weather. Despite recent reductions in cultural funding, industry analysts believe Berlin stands to benefit as climate concerns and rising airfares redirect tourist flows northward. 3. Brief updates on urban developments Geneva temporarily made all public transit free to combat a spike in ozone levels during a heatwave. The initiative aimed to reduce vehicle emissions by encouraging use of buses, trams, trains, and boats until air quality improved. In China, new home prices fell 2.8% year-on-year in July 2025. While the decline slowed in larger cities, the property sector remains weak due to low demand and excess supply. This follows the delisting of Evergrande Group from the Hong Kong Stock Exchange. Hundreds of its developments remain unfinished, leaving investors and contractors in financial uncertainty. Hong Kong also experienced extreme rainfall on 5 August, recording over 350mm—the highest for August since 1884. The downpour triggered widespread disruptions: schools, courts, and hospitals shut down, flights were delayed, and the city issued its fourth black rainstorm warning in eight days, underscoring growing climate vulnerabilities. 4. Urban innovation and resilience Rapid delivery services are expanding faster than cities can adapt infrastructure sustainably. The World Economic Forum’s Centre for Urban Transformation is fostering collaboration across sectors to develop shared frameworks for cleaner, safer urban logistics. The ‘sponge city’ model, introduced by landscape architect Kongjian Yu, uses natural and engineered systems to absorb rainwater and reduce flood risks. Cities like Copenhagen are implementing engineered solutions post-climate disasters, while Auckland is recognized for its naturally absorbent landscape. These strategies are critical for protecting growing urban populations from climate impacts. n— news from The World Economic Forum
— News Original —nThe most affordable housing markets – and other urban transformation stories to read this monthnFor the first time in over two decades of tracking, not one of the major housing markets assessed by the Demographia International Housing Affordability report qualifies as “affordable”.n nThe comprehensive study of 95 metropolitan areas across eight nations reveals an unprecedented crisis that has locked middle-income households out of homeownership globally. n nHong Kong remains the world ‘s least affordable housing market with a median multiple of 14.4, meaning typical homes cost more than 14 times the median household income. In terms of countries, Australia dominates the unaffordable rankings, with Sydney taking second place overall with a median multiple of 13.8. Alongside it in the ‘Impossibly Unaffordable ‘ rankings are Adelaide (10.9), Melbourne (9.7) and Brisbane (9.3), with Perth (8.3) coming under the ‘Severely Unaffordable ‘ section. n nAt the opposite end, Pittsburgh, Pennsylvania claimed the title of most affordable market for the fifth consecutive year with a median multiple of 3.2, though even this falls into the ‘Moderately Unaffordable ‘ category. Other relatively affordable markets include Cleveland (3.3), St. Louis (3.5), and Middlesbrough & Durham in the UK (3.7). n nThe report attributes the crisis primarily to restrictive urban planning policies that limit peripheral development through greenbelts, urban growth boundaries and densification requirements. n n”High housing prices, relative to incomes, are having a distinctly feudalizing impact,” warned Joel Kotkin, director of Chapman University ‘s Center for Demographics and Policy, noting that “restrictive housing policies may be packaged as progressive, but in social terms their impact could better be characterized as regressive.” n nThe affordability collapse has triggered mass migration patterns, with middle-income households increasingly abandoning expensive markets for more affordable regions – a phenomenon the report terms “counterurbanization”. n nDiscover n nWhat is the World Economic Forum doing to promote sustainable urban development? n nCities are responsible for 75% of global greenhouse gas emissions and are home to over half of the world’s population—a number that will grow to two-thirds by 2050. By prioritizing cleaner energy, cities could contribute more than half of the emissions cuts needed to keep global warming to less than 2°c, which would be in line with the Paris Agreement. n nLoading… n nTo achieve net-zero and nature-positive cities and communities by 2050, the World Economic Forum is partnering with public and private sector stakeholders on initiatives that drive global ambition through local action. Here are just a few: n nDavos Baukultur Alliance: Advancing high-quality planning, construction and management of buildings, infrastructure, and public spaces using principles based on climate resilience, sustainability and circularity in the built environment. Learn more. n nGlobal New Mobility Coalition: Exploring new solutions to reduce congestion and emissions, enhance EV infrastructure and transform urban mobility and deliveries. Learn more. n nAlliance for Urban Innovation: Connecting innovators and entrepreneurs to new markets and opportunities that reimagine and reshape quality of life and local economies. Learn more. n nG20 Global Smart Cities Alliance: Accelerating intelligent, practical solutions to build climate resilience, enhance public well-being and tackle the most pressing challenges facing cities and local communities. Learn more. n nFuture of Travel and Tourism: Driving inclusive and sustainable economic growth while preserving cultural heritage and protecting natural ecosystems. Learn more.. n nDiscover how you can be a part of our efforts to create more sustainable and livable cities and communities. Contact us here. n n2. Berlin capitalizes on ‘cooler ‘, less crowded tourism n nAs Paris and Barcelona struggle with overtourism, heat and protests, Berlin is promoting itself as a cool, spacious and budget-friendly alternative for travellers. n nThe German capital, with 5.9 million tourists in the first half of 2025, has lower hotel occupancy than southern cities and highlights green spaces, water and shade. n n“We really don’t face issues with overtourism,” Christian Taenzler of VisitBerlin told Reuters. “The city is large and people spread out. Especially in summer, when Berliners are away, there ‘s quite a lot of space.” n nWith temperatures generally peaking at 25C during the summer months, the city could appeal to tourists seeking cooler climes. n nIndustry experts see potential for growth as climate concerns and increased airfares shift tourists north, increasing Berlin’s appeal despite some recent cultural budget cuts. n n3. News in brief: More top city stories n nGeneva made all public transport temporarily free for the first time to tackle a spike in ozone pollution amid a heatwave. It aimed to cut traffic emissions by encouraging the use of buses, trams, trains and boats over cars until air quality improves. n nChina ‘s new home prices declined again in July 2025, dropping 2.8% year-on-year, though the pace of decline slowed in major cities. Despite government stimulus measures, China’s property market remains sluggish, weighed down by weak demand and oversupply, but the downward trend is beginning to ease. n nIt comes as the country ‘s once-dominant property developer Evergrande Group was delisted from the Hong Kong Stock Exchange. Hundreds of Evergrande’s projects remain unfinished, leaving creditors facing uncertain recoveries. n nHong Kong, meanwhile, faced unprecedented flooding with over 350mm of rain on 5 August, the heaviest for August since 1884. Schools, courts and hospitals closed, flights were delayed, and severe disruptions affected daily life. The city issued its fourth black rainstorm warning in eight days, highlighting climate change challenges. n n4. More on urban transformation on Forum Stories n nUltra-fast delivery is outpacing the evolving infrastructure needed in cities for sustainability amid rising emissions. Cities need a standardized framework utilizing shared investment and data to manage the growth of this industry. The Forum’s Centre for Urban Transformation is coordinating cross-sector collaboration to scale solutions that make deliveries cleaner, safer and more integrated into cities. n nThe ‘sponge city ‘ concept, pioneered by landscape architect Kongjian Yu, uses natural and engineered systems to absorb rainfall and prevent flooding. Cities like Copenhagen are actively engineering solutions after climate disasters, while others like Auckland are recognized for their natural ‘sponginess ‘. Mitigating urban flood risk is a vital climate adaptation strategy for the world ‘s growing urban populations.