Mapping and benchmarking housing affordability in Saudi Arabia: a PCA-based approach to ownership trends

Purpose – Housing affordability is critical at the intersection of socio-economic equity and urban development, particularly in rapidly urbanizing countries. This study aims to investigate ownership housing affordability (OHA) in Saudi Arabia using a robust empirical methodology that incorporates exploratory factor analysis (EFA), principal component analysis (PCA) and global benchmarking techniques. By blending quantitative methods with contextual comparisons, the study focuses on major Saudi cities and examines changes from 2021 to 2024. Design/methodology/approach – The study introduces the ownership housing affordability index (OHAI), which aggregates standardized metrics to rank cities by affordability stress. Adopting a segmented analysis perspective, the study focuses explicitly on Saudi nationals – referred to as potential owners (POs) – whose housing demand patterns are shaped by cultural norms and national policies. By benchmarking against global cities, the unique market dynamics of Saudi cities are contextualized within international housing affordability frameworks. Findings – The findings reveal significant regional disparities that may be affected by high housing prices, income inequality and variations in economic growth. Affordability-related challenges are particularly significant in large urban areas such as Riyadh and Jeddah. Conversely, smaller cities like Hail and Najran show better affordability conditions but struggle with limited economic opportunities. Originality/value – Through a data-driven index, ensuring informed decision-making, this research emphasizes the need for targeted strategies to address inequalities and promote sustainable and inclusive housing markets.