House prices and incomes in Europe: Where is it getting harder to buy a home?

Across 17 EU countries, the price of homes relative to household incomes has decreased in recent years, according to Eurostat data. In 2025, this ratio rose by 6.8% across the EU, although it fell in 10 member states. Meanwhile, house prices increased by 62% in the EU between 2015 and 2025. The European Affordable Housing Plan, presented by the European Commission in December 2025, aims to address the housing crisis.

The highest increase in the house price-to-income ratio was seen in Portugal (60.8%) and the Netherlands (34.3%). In Hungary, Czechia, Spain, and Greece, the ratio rose by more than 20%. This indicates that homes became less affordable in these countries as prices surged faster than incomes.

Romania recorded the biggest decrease in the ratio (42.8%), while Finland and Bulgaria saw falls of 25.2% and 16.2%, respectively. Cyprus and Italy also experienced double-digit declines (12% and 11.9%, respectively).

Meanwhile, France, Italy, and Germany saw relatively smaller increases (less than 6%), while Spain saw the largest rise among the four largest EU economies (24.5%). Eurostat also compares each country's 2025 ratio with its average from 2000 to 2025. Portugal and Romania are at opposite ends of the range, with Portugal's ratio 37% above its long-term average and Romania's ratio 53% below.

Experts note that strong demand in major cities and supply struggles contribute to the rising ratios, while strong income growth in Bulgaria and Romania after EU entry made homes cheaper relative to incomes. However, a fall in the ratio does not necessarily mean a market is affordable.