Question housing affordability in Europe remains a key social and economic problem facing millions of people. Rapidly rising property prices, inflation, income instability and high demand for rental housing create significant obstacles for citizens wishing to find permanent housing. Young people, middle-aged people and socially vulnerable groups feel these difficulties especially acutely. Depending on the country and economic situation, housing affordability can vary significantly, affecting quality of life and social stability.
Where is the easiest place to buy property in Europe?
Buying property in Europe can be a daunting task, especially given the differences in income, inflation and housing costs between countries. The issue of housing affordability remains relevant for many citizens, and the BestBrokers portal recently published rating states where real estate is most affordable. The analysis was based on the ratio of the average cost of housing and the average net salary. The study took into account factors such as inflation rates and mortgage interest rates. The best and worst European countries in terms of housing affordability differ greatly:
- 🇩🇰 Denmark. According to the study, Denmark ranks first in terms of real estate affordability. On average, buying an apartment or house with an area of 100 square meters will cost local residents 114 monthly salaries. This indicator indicates that, with a stable income and a sensible approach to spending, Danes can afford housing faster than people in many other countries;
- 🇮🇪 Ireland and Sweden 🇸🇪. Ireland and Sweden took second and third places. In these countries, it will take approximately 10 years to save for housing, provided you save your entire salary. In Ireland the average cost is 123 monthly salaries, in Sweden - 129. This figure suggests that even with moderate costs, housing here is more affordable than in many other countries, but the purchase still requires time and financial planning;
- 🇨🇿 Czech Republic and Slovakia 🇸🇰. At the opposite end of the ranking are the Czech Republic and Slovakia. Here, citizens need about 297 monthly salaries to purchase housing with an area of 100 square meters. This means that it will take the average resident about 25 years to accumulate the required amount. High prices and relatively low incomes make the Czech Republic and Slovakia less attractive for those who want to quickly acquire their own home.
The main factors influencing the affordability of housing in Europe include the level of average wages, inflation rates, cost per square meter of real estate and mortgage interest rates. Housing affordability in Europe varies greatly from country to country. Choosing the best place to buy a home depends on a variety of factors, including personal income, long-term plans, and tolerance for financial constraints.
Who has the biggest difficulties with housing?
The issue of accessibility and ensuring constant housing remains a pressing problem for many European countries. Recent Eurostat research showed that in 2023, about 4.9% of the European Union's population faced housing difficulties. Difficulties in renting and purchasing housing are most acute for certain age groups and segments of the population, especially those at risk of poverty or social exclusion. Statistics show that as people age, they experience difficulties less frequently, but for young and middle-aged people the problem remains acute.
- Youth (16-29 years old): The most vulnerable group, with 14.8% reporting difficulties with rent. Youth often face high rental costs and income instability, making it difficult to secure permanent housing. Many are forced to accept modest conditions, be it rooms, hostels or apartments rented for a short period of time.
- Middle-aged people (30-54 years): among this age category, 14.7% experience housing difficulties. These people often bear the brunt of the family's financial burden and also face high housing costs, especially if they are at risk of poverty.
- Pre-retirement age (55-64 years): About 12.8% of people this age report problems with housing. Although the situation is somewhat more stable in this age group, many still face problems with rent, especially if their income level is not high enough.
- Older people (65 years and older): Housing difficulties become less noticeable as people age, with only 6.7% of older people reporting such problems. However, if seniors are facing financial difficulties, renting can become a major problem due to the lack of high income.
Experts cite high rental costs, income instability, social isolation and poverty as the main reasons for housing difficulties. Many are forced to live in temporary accommodation, which creates additional stress and instability in their lives. Access to housing in Europe remains a challenge for many citizens, especially young and middle-aged people at risk of poverty.