Revealing the Truth: Housing Expenses Across Europe Unveiled
Approximately one-quarter of Germany's expenditure goes towards housing expenses. - Housing Consumption in Germany: On average, four out of every ten Euros spent by Germans is directed towards housing expenses.
Curious about where people in Europe are shelling out the most on housing costs? Dive into the fascinating world of real estate expenditure across Europe!
According to recent reports and Eurostat data, people in Germany spent an astounding 24.5 percent of their income on rent or other housing costs in 2024. This figure is 5.3 percentage points higher than the EU average, making it one of the priciest places to live in Europe. While the numbers have seen slight improvement compared to 2023, the country still ranks high in housing expenses, as the Federal Statistical Office reported.
In contrast, countries like France, Austria, and the Netherlands have significantly lower housing costs. In Germany, those at risk of poverty spent an average of 43.8 percent of their income on housing, equating to nearly every second euro.
Apparently, Denmark (26.3 percent) and Greece (35.5 percent) had the highest average shares of housing costs in 2024. Luckily, lower housing cost shares were reported for Cyprus (11.4 percent), Malta (12.5 percent), Italy, and Slovenia (each 13.6 percent).
"Housing in Germany is a poverty program for large parts of the population," remarked BSW chairwoman Sahra Wagenknecht to news agency AFP. She emphasized, "That people spend significantly less on housing in countries like France or Austria shows that it can be done differently." Wagenknecht advocated for a nationwide rent cap and a higher share of non-profit housing in the market.
Now, let's dig deeper into the statistics and understand the housing cost overburden rate across Europe. Eurostat defines housing cost overburden as the percentage of the population living in a household where total housing costs (net of housing allowances) exceed 40 percent of total disposable household income.
- Ireland emerges as the most expensive European country for housing, exceeding the EU average significantly.
- France and Germany display slightly higher housing costs than the EU average.
- Italy and Spain fall below the EU average in housing cost burden.
- Malta and Hungary residents pay around two-thirds of the EU average, while Bulgaria and several Eastern European countries spend well below the EU average.
Over the past decade (2015-2024), housing costs have increased in most European countries, yet there have been notable exceptions. For instance, Estonia witnessed a 100 percent increase in housing costs, and Poland, Czech Republic, and the overall EU average observed an 80 percent rise. Portugal, Croatia, Spain, Ireland, the Netherlands, and several other countries have seen varied but generally positive increases in housing costs.
Fascinatingly, Germany saw a decrease in housing prices in 2024, but housing costs still remain above the EU average. Notably, Bulgaria reported the highest house price increase in the EU.
In summary, housing cost trends and overburden rates differ greatly across Europe. It's worth noting that Eurostat's interactive databases offer up-to-date and detailed figures on this topic for a more granular analysis.
In light of the current statistics, it's evident that Ireland has the highest housing costs among European countries, surpassing the average significantly. On the other hand, countries such as Malta and Hungary have housing costs that approximate two-thirds of the EU average. Personal financial management is crucial in navigating these varying housing expenses, and understanding the business aspect of housing can aid in making informed decisions, such as strategic vocational training in real estate or personal finance to better manage housing costs.
