Europe facing housing affordability crisis, continental study of more than 22 million property listings suggests
Nearly half of people living in Europe on an average income can only afford to buy the equivalent of a one-bedroom apartment or studio apartment, while 39% of Europeans cannot afford to rent a property this size.
A recent study published in the Journal of Maps reveals that nearly half of Europe's urban population lives in areas where the average income only covers properties of up to one-bedroom size. Considering rental affordability, 39% of Europeans cannot rent a home of this size. Researchers from TU Wien in Austria used property and financial data from over 30 European countries to identify hotspots of housing unaffordability.
Densely populated urban areas, such as those around Paris, Berlin, and Madrid, are the most severely affected. Approximately 44% of Europe's urban residents reside in cities where less than 50 square meters (538 square feet) are affordable on an average income. Moreover, more than 70% of the European population is based in regions where a 30-year mortgage can afford only up to 75 square meters (807 square feet).
The study highlights that tourist areas with high concentrations of second-home owners and short-term rentals exacerbate the affordability crisis by pricing local residents out of the market. Areas such as coastal zones, mountain regions, and large rural gaps in rental markets are among those most affected. The researchers emphasize that the issue affects both newcomers to the housing market and individuals who frequently change locations for personal or professional reasons.
While housing prices have risen faster than incomes in Europe for over a decade, the study points out that the severity of the affordability crisis is often underestimated for the majority of the population.
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