Housing costs continue to put pressure on households across Europe, with house prices rising by an average of 69% across the European Union between 2015 and the second quarter of 2026, according to Eurostat. Rents and energy costs have also increased, making housing less affordable for many residents.
In 2025, 7.7% of people in the EU lived in households spending more than 40% of their disposable income on housing. Known as the housing cost overburden rate, this measure highlights the growing gap between housing expenses and household incomes.
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However, the figures vary considerably across countries. Cyprus recorded the lowest rate in Europe, at just 2.4%.
Greece Has Europe’s Highest Housing Cost Burden
Among the countries covered by the data, Greece recorded the highest housing cost overburden rate in 2025, at 26.4%, meaning more than one in four residents lived in households spending over 40% of their disposable income on housing.
Denmark followed among EU member states at 14.7%, ahead of Germany at 11.2% and Sweden at 10.8%. Outside the EU, Switzerland recorded 15.3% and Norway 13.5%.
At the other end of the ranking, Cyprus had the lowest rate at 2.4%, followed by Croatia at 3.2%, and Slovenia and Slovakia at 3.5% each.
Among the EU’s largest economies, Spain recorded 7.2%, France 6.4% and Italy 5%, all below the EU average.
Researchers caution that the figures do not tell the whole story. Hannah Widmer of ETH Zürich told Euronews Business that housing costs rising faster than incomes, particularly for lower-income households, are a key driver of the problem.
Rikke Skovgaard Nielsen of Aalborg University also noted that welfare systems, living costs and the income left after paying for housing differ between countries, meaning similar overburden rates can have different consequences.
More Than 34 Million Europeans Spend Over 40% Of Income On Housing
Across the EU, more than 34 million people lived in households exceeding the 40% housing-cost threshold in 2025.
Germany recorded the largest affected population, at 9.4 million, followed by Turkey with 8.6 million. France had 4.4 million people affected, Spain 3.5 million and Italy 2.9 million. Greece ranked sixth, with 2.7 million, despite having a considerably smaller population than several countries above it.
Eurostat includes rent or mortgage interest, utilities, insurance, maintenance, repairs and housing-related taxes when calculating housing costs. The overburden rate measures these expenses against disposable income after taxes and social contributions, including social benefits.
Low-Income Households Face The Greatest Pressure
The burden is significantly heavier for people at risk of poverty. Across the EU, 29.1% of this group spent more than 40% of their disposable income on housing in 2025.
Greece again recorded the highest figure, at 82.6%, followed by Denmark at 59.8% and Switzerland at 56.1%. Germany stood at 35%, above the EU average, while Spain recorded 28.3%, France 25.4% and Italy 21.7%.
Cyprus had the lowest rate among the countries compared, at 7.6%, followed by Albania at 8.2% and Croatia at 14.9%.
The EU median equivalised disposable income reached €22,939 annually in 2025, equivalent to €1,912 per month. For people at risk of poverty, the relevant threshold was 60% of the national median income.
Rising Costs Continue To Challenge European Households
Experts point to a combination of rising rents, property prices, energy bills, interest rates and inflation as factors increasing housing pressure. Marietta Haffner of TU Delft said the burden grows when these costs rise faster than household incomes.
The figures underline that housing affordability depends not only on property prices but also on income levels, welfare support and the availability of affordable alternatives. While Cyprus currently records the lowest housing cost overburden rate in Europe, the wider EU data highlights the unequal financial pressure facing households across the continent.
