In 2021, 10.4 % of the EU population in cities were living in a household affected by housing cost overburden, while the corresponding rate for rural areas was 6.2 %.

The highest housing cost overburden rates in cities were observed in Greece (32.4 %), Denmark (21.9 %) and the Netherlands (15.3 %). On the other hand, cities in Lithuania, Malta, and Hungary recorded the lowest shares (1.6 %, 2.9 % and 3.1 %, respectively).

In rural areas, rates were highest in Greece (22.0 %), Bulgaria (13.3 %) and Romania (10.8 %). The lowest housing cost overburden rates in rural areas were recorded in Cyprus (1.3 %), Ireland (1.6 %) and Hungary (2.2 %).

In 2021, the housing cost overburden was higher in cities than in rural areas in all EU countries except Bulgaria, Romania, Croatia, Lithuania and Latvia.

 

Is housing affordable?

Housing cost overburden highest in cities

 With house prices and rents rising, the cost of housing can be a burden. This can be measured by the housing cost overburden rate, which shows the share of the population living in a household where total housing costs represent more than 40 % of disposable income. In the EU in 2021, 10.4 % of the population in cities lived in such a household, while the corresponding rate for rural areas was 6.2 %. The housing cost overburden was higher in cities than in rural areas in all Member States, except Romania, Bulgaria, Lithuania, Croatia and Latvia.

The highest housing cost overburden rates in cities were observed in Greece (32.4 %), Denmark (21.9 %) and the Netherlands (15.3 %), while in rural areas they were highest in Greece (22.0 %), Bulgaria (13.3 %) and Romania (10.8 %).

Almost a fifth of disposable income dedicated to housing

Another way of seeing whether housing is affordable is by the share of housing cost in total disposable income. On average in the EU in 2021, 18.9 % of disposable income was dedicated to housing costs. This differed among the Member States, with the highest shares in Greece (34.2 %), Denmark (26.3 %) and the Netherlands (23.9 %).

Looking at those having a disposable income of below 60 % of the national median income, people who could be considered as at risk of poverty, the share of housing in disposable income was 37.7 % on average in the EU. On the other hand, for those having a disposable income of above 60 % of the median income, the share amounted to 15.2 %.

Share of people living in households with arrears on mortgage, rent or utility bills at a lower level than a decade ago

Arrears on mortgage, rent or utility bills is another indication that housing costs could be too high. Despite the fact that house prices and rents have increased during the period 2010 to 2021, the share of people living in households with arrears on mortgage, rent or utility bills in the EU has decreased from 12.4 % in 2010 to 9.1 % in 2021. The shares have decreased in 20 Member States, increased in five and were the same in 2010 and 2021 in Malta (2021 data for Slovakia not available). In 2021, the largest shares were observed in Greece (36.4 %), Bulgaria (20.4 %), Cyprus (17.3 %), Croatia (16.6 %) and Ireland (13.6 %) and the smallest in Czechia (2.4 %), the Netherlands (2.6 %), Belgium (4.2 %) and Austria (4.8 %).

 

Evolution of house prices and rents

House prices up by 37 % in the EU between 2010 and 2021

Looking at the trend of house prices between 2010 and 2021, there has been a steady upwards trend since 2013 with particularly large increases between 2015 and 2021. In total, there was an increase of 37 % between 2010 and 2021. There were increases in 23 Member States and decreases in three (data for Greece not available) over this period. The largest increases were observed in Estonia (+139 %), Hungary (+122 %), Luxembourg (+115 %), Latvia (+101 %) and Austria (+100 %), while decreases were registered in Italy (-13 %), Cyprus (-8 %) and Spain (-2 %).

Rents up by 16 %

There has been a steady increase of rents in the EU between 2010 and 2021 – in total 16 % during the whole period. There was an increase in 25 Member States and a decrease in two. The largest increases were registered in Estonia (+154 %), Lithuania (+110 %) and Ireland (+68 %), while decreases were observed in Greece (-25 %) and Cyprus (-3 %).

Inflation up by 17 %

Inflation between 2010 and 2021 developed fairly similarly as rents with a total increase of 17 %. There has been inflation in all Member States during this period, with increases of 25 % or more in Hungary (+33 %), Romania (+31 %), Estonia (+30 %) and Lithuania (+25 %). The lowest price increases were observed in Greece (+2 %), Cyprus (+7 %) and Ireland (+8 %).

Housing costs between 64 % below and 94 % above the EU averageThe housing costs compared to the EU average differ significantly between Member States. The highest housing costs in 2021 compared to the EU average were found in Ireland (94 % above the EU average), Luxembourg (87 % above) and Denmark (78 % above). The lowest, on the other hand, were observed in Bulgaria (64 % below the EU average) and Poland (62 % below).

Looking at the evolution between 2010 and 2021, housing price levels compared to the EU average have increased in 16 Member States and decreased in 11. The largest increases were observed in Ireland (from 17 % above to 94 % above the EU average) and Slovakia (from 44 % below to 1 % below the EU average) and the largest decreases in Greece (from 8 % below to 30 % below the EU average) and Cyprus (from 8 % below to 26 % below).

The housing costs compared to the EU average differ significantly between Member States. The highest housing costs in 2021 compared to the EU average were found in Ireland (94 % above the EU average), Luxembourg (87 % above) and Denmark (78 % above). The lowest, on the other hand, were observed in Bulgaria (64 % below the EU average) and Poland (62 % below).

Looking at the evolution between 2010 and 2021, housing price levels compared to the EU average have increased in 16 Member States and decreased in 11. The largest increases were observed in Ireland (from 17 % above to 94 % above the EU average) and Slovakia (from 44 % below to 1 % below the EU average) and the largest decreases in Greece (from 8 % below to 30 % below the EU average) and Cyprus (from 8 % below to 26 % below).

Construction producer prices up by 25 % between 2010 and 2021

The construction producer prices for new residences in the EU have also increased during the period 2010 to 2021, especially since 2016. The increase during the whole period was 25 %. Among the Member States, the largest rises were observed in Hungary (+88 %), Romania (+63 %), Latvia (+56 %) and Lithuania (+48 %). Greece was the only Member State to record a decrease (-3 %).

For more information:

• Interactive publication on Housing in Europe
• EU statistics on income and living conditions (EU-SILC) methodology – housing conditions

Methodological notes:

• 2021 data not available for France, Slovakia, Iceland, Norway, Switzerland, the United Kingdom, Montenegro, North Macedonia, Albania, Serbia, Turkey and Kosovo for housing cost overburden rate by degree of urbanisation (ilc_lvho07D).
• Housing costs do not include mortgage principal repayments.

www.ec.europa.eu/eurostat/

In 2021, 10.4% of the EU population in cities were living in a household affected by housing cost overburden, while the corresponding rate for rural areas was 6.2%.

The highest housing cost overburden rates in cities were observed in Greece (32.4%), Denmark (21.9%) and the Netherlands (15.3%). On the other hand, cities in Lithuania, Malta, and Hungary recorded the lowest shares (1.6%, 2.9% and 3.1%, respectively).

In rural areas, rates were highest in Greece (22.0 %), Bulgaria (13.3 %) and Romania (10.8 %). The lowest housing cost overburden rates in rural areas were recorded in Cyprus (1.3 %), Ireland (1.6 %) and Hungary (2.2 %).

In 2021, the housing cost overburden was higher in cities than in rural areas in all EU countries except Bulgaria, Romania, Croatia, Lithuania and Latvia.

Is housing affordable?

Housing cost overburden highest in cities

 With house prices and rents rising, the cost of housing can be a burden. This can be measured by the housing cost overburden rate, which shows the share of the population living in a household where total housing costs represent more than 40 % of disposable income. In the EU in 2021, 10.4 % of the population in cities lived in such a household, while the corresponding rate for rural areas was 6.2 %. The housing cost overburden was higher in cities than in rural areas in all Member States, except Romania, Bulgaria, Lithuania, Croatia and Latvia.

The highest housing cost overburden rates in cities were observed in Greece (32.4 %), Denmark (21.9 %) and the Netherlands (15.3 %), while in rural areas they were highest in Greece (22.0 %), Bulgaria (13.3 %) and Romania (10.8 %).

 

Almost a fifth of disposable income dedicated to housing

Another way of seeing whether housing is affordable is by the share of housing cost in total disposable income. On average in the EU in 2021, 18.9 % of disposable income was dedicated to housing costs. This differed among the Member States, with the highest shares in Greece (34.2 %), Denmark (26.3 %) and the Netherlands (23.9 %).

Looking at those having a disposable income of below 60 % of the national median income, people who could be considered as at risk of poverty, the share of housing in disposable income was 37.7 % on average in the EU. On the other hand, for those having a disposable income of above 60 % of the median income, the share amounted to 15.2 %.

 

Share of people living in households with arrears on mortgage, rent or utility bills at a lower level than a decade ago

Arrears on mortgage, rent or utility bills is another indication that housing costs could be too high. Despite the fact that house prices and rents have increased during the period 2010 to 2021, the share of people living in households with arrears on mortgage, rent or utility bills in the EU has decreased from 12.4 % in 2010 to 9.1 % in 2021. The shares have decreased in 20 Member States, increased in five and were the same in 2010 and 2021 in Malta (2021 data for Slovakia not available). In 2021, the largest shares were observed in Greece (36.4 %), Bulgaria (20.4 %), Cyprus (17.3 %), Croatia (16.6 %) and Ireland (13.6 %) and the smallest in Czechia (2.4 %), the Netherlands (2.6 %), Belgium (4.2 %) and Austria (4.8 %).

 

Evolution of house prices and rents

House prices up by 37 % in the EU between 2010 and 2021

Looking at the trend of house prices between 2010 and 2021, there has been a steady upwards trend since 2013 with particularly large increases between 2015 and 2021. In total, there was an increase of 37 % between 2010 and 2021. There were increases in 23 Member States and decreases in three (data for Greece not available) over this period. The largest increases were observed in Estonia (+139 %), Hungary (+122 %), Luxembourg (+115 %), Latvia (+101 %) and Austria (+100 %), while decreases were registered in Italy (-13 %), Cyprus (-8 %) and Spain (-2 %).

Rents up by 16 %

There has been a steady increase of rents in the EU between 2010 and 2021 – in total 16 % during the whole period. There was an increase in 25 Member States and a decrease in two. The largest increases were registered in Estonia (+154 %), Lithuania (+110 %) and Ireland (+68 %), while decreases were observed in Greece (-25 %) and Cyprus (-3 %).

Inflation up by 17 %

Inflation between 2010 and 2021 developed fairly similarly as rents with a total increase of 17 %. There has been inflation in all Member States during this period, with increases of 25 % or more in Hungary (+33 %), Romania (+31 %), Estonia (+30 %) and Lithuania (+25 %). The lowest price increases were observed in Greece (+2 %), Cyprus (+7 %) and Ireland (+8 %).

Housing costs between 64 % below and 94 % above the EU averageThe housing costs compared to the EU average differ significantly between Member States. The highest housing costs in 2021 compared to the EU average were found in Ireland (94 % above the EU average), Luxembourg (87 % above) and Denmark (78 % above). The lowest, on the other hand, were observed in Bulgaria (64 % below the EU average) and Poland (62 % below).

Looking at the evolution between 2010 and 2021, housing price levels compared to the EU average have increased in 16 Member States and decreased in 11. The largest increases were observed in Ireland (from 17 % above to 94 % above the EU average) and Slovakia (from 44 % below to 1 % below the EU average) and the largest decreases in Greece (from 8 % below to 30 % below the EU average) and Cyprus (from 8 % below to 26 % below).

The housing costs compared to the EU average differ significantly between Member States. The highest housing costs in 2021 compared to the EU average were found in Ireland (94 % above the EU average), Luxembourg (87 % above) and Denmark (78 % above). The lowest, on the other hand, were observed in Bulgaria (64 % below the EU average) and Poland (62 % below).

Looking at the evolution between 2010 and 2021, housing price levels compared to the EU average have increased in 16 Member States and decreased in 11. The largest increases were observed in Ireland (from 17 % above to 94 % above the EU average) and Slovakia (from 44 % below to 1 % below the EU average) and the largest decreases in Greece (from 8 % below to 30 % below the EU average) and Cyprus (from 8 % below to 26 % below).

Construction producer prices up by 25 % between 2010 and 2021

The construction producer prices for new residences in the EU have also increased during the period 2010 to 2021, especially since 2016. The increase during the whole period was 25 %. Among the Member States, the largest rises were observed in Hungary (+88 %), Romania (+63 %), Latvia (+56 %) and Lithuania (+48 %). Greece was the only Member State to record a decrease (-3 %).

For more information:

• Interactive publication on Housing in Europe
• EU statistics on income and living conditions (EU-SILC) methodology – housing conditions

Methodological notes:

• 2021 data not available for France, Slovakia, Iceland, Norway, Switzerland, the United Kingdom, Montenegro, North Macedonia, Albania, Serbia, Turkey and Kosovo for housing cost overburden rate by degree of urbanisation (ilc_lvho07D).
• Housing costs do not include mortgage principal repayments.

www.ec.europa.eu/eurostat/