An IMGW News Report
House prices across the European Union surged by 48% between 2010 and 2023, with housing costs, including utilities, rising sharply in several member states, according to Eurostat’s latest report on Europe’s housing landscape.
In 2023, Ireland recorded the highest housing costs in the EU, including expenditures on water, electricity, and gas—double the EU average. Luxembourg followed at 86% above the average, with Denmark close behind at 80%. Conversely, housing in Bulgaria and Poland remained the most affordable, with costs 61% and 56% below the EU average, respectively.
Ireland’s housing costs have seen the steepest rise. In 2010, costs were 17% above the EU average; by 2023, they had soared to 101% above. In total, 17 member states saw housing costs increase over the same period, while nine, including Greece, Cyprus, and Spain, experienced decreases. Costs in Poland remained unchanged.
“Investment in housing varied widely. Cyprus led, dedicating 8.6% of its GDP to property, compared to Poland’s 2.2%, the bloc’s lowest rate. On average, EU housing investment accounted for 5.8% of GDP, amounting to approximately €1 trillion.”
House Prices and Rental Trends
While the housing crisis persists in countries like Ireland, Portugal, and Spain, 2023 marked a modest reprieve, with house prices in the EU declining by 0.3% on average. However, this was a brief pause in a longer trend. Between 2010 and 2023, house prices surged by 209% in Estonia, 191% in Hungary, and 154% in Lithuania. Only Italy and Cyprus reported declines, of 8% and 2%, respectively.
Rentals showed a steadier upward trajectory, rising 22% across the bloc during the same period, with only Greece bucking the trend. Estonia led the way with a staggering 211% rise in rental prices, while Lithuania and Ireland recorded increases of 169% and 100%, respectively.
Share of people living in households owning or renting their home, 2022 (in %)
Housing Affordability
On average, EU households allocated nearly 20% of disposable income to housing costs in 2023. Greece recorded the highest proportion at 35.2%, followed by Luxembourg at 27.6% and Denmark at 25.9%. For those at risk of poverty, this share was significantly higher, averaging 38.2%.
Encouragingly, the proportion of Europeans falling into arrears on mortgages, rent, or utility bills declined to 9.3% in 2023, down from 12.4% in 2010. However, Greece remains an outlier, with nearly half its population in arrears.
Homeownership and Investments
In 2023, over two-thirds of EU citizens (69%) owned their homes, while 31% rented. Romania had the highest homeownership rate, exceeding 95%, followed by Slovakia and Croatia. Germany and Switzerland, in contrast, had the largest rental populations, with over half their residents as tenants.
Investment in housing varied widely. Cyprus led, dedicating 8.6% of its GDP to property, compared to Poland’s 2.2%, the bloc’s lowest rate. On average, EU housing investment accounted for 5.8% of GDP, amounting to approximately €1 trillion.
