Across the European Union, more than 34 million people now live in households dedicating an outsized share of their monthly budgets just to keep a roof overhead. According to data published by Eurostat, the bloc’s average housing cost overburden rate—defined as the proportion of the population spending more than 40% of their disposable income on housing—stood at 7.7% in 2025.
The Bottom Line:
- House prices across the European Union surged by an average of 69% between 2015 and the second quarter of 2026, with some member states registering increases exceeding 100%.
- Greece records the highest housing cost overburden rate in Europe at 26.4%, more than triple the 2025 EU average of 7.7%.
- Among residents classified as at risk of poverty, the EU-wide overburden rate spikes to 29.1%, climbing to 82.6% for vulnerable households in Greece.
The Rising Cost Pressures Across European Housing Markets
The structural squeeze on European household balance sheets reflects a multi-year divergence between soaring asset values and modest income growth. The European Council formally acknowledged the depth of the crunch, stating that Europe faces a crisis driven by rising house prices and increasing housing costs. Property values have climbed steadily alongside persistent increases in rents and energy bills.
Dr Marietta Haffner from TU Delft explained the mechanics of the squeeze. When housing costs such as house prices, rents, energy prices, interest rates, and inflation rise faster than income, the share of housing costs in a household budget naturally expands. Haffner also warned that escalating energy costs will likely serve as a primary driver pushing the overburden rate higher over the coming year.
The burden, however, is distributed unevenly across member states. Greece holds the highest housing cost overburden rate among the 34 nations tracked by Eurostat, which includes the 27 EU member states, two EFTA countries, and five EU candidate countries. In 2025, 26.4% of the Greek population lived in households spending over 40% of their disposable income on housing.
Denmark follows among EU member states at 14.7%, while Germany registers 11.2% and Sweden stands at 10.8%. Outside the EU, Switzerland records 15.3% and Norway reaches 13.5%, while candidate countries Turkey, Montenegro, and Serbia log rates of 10%, 8.7%, and 7.9% respectively. Conversely, Cyprus reports the lowest rate in the EU at just 2.4%, followed by Croatia at 3.2%, and Slovenia and Slovakia both at 3.5%.
Absolute Numbers Reveal the Scale of Germany and Regional Giants
While percentage rates illustrate regional severity, absolute population metrics highlight where the largest blocks of consumers face capital constraints. Germany leads the EU in sheer volume, with 9.4 million people affected by housing cost overburden. Turkey follows with 8.6 million people, ahead of France at 4.4 million, Spain at 3.5 million, and Italy at 2.9 million. Despite its smaller overall population, Greece ranks sixth in absolute terms, with 2.7 million residents squeezed by high housing expenses.
Dr Hannah Widmer from ETH Zürich noted that comparative analysis remains complex due to differing welfare provisions and living standards. The interplay between housing tenure structures—where private renters typically face the heaviest burdens—welfare architectures, and broader macroeconomic conditions explains why some nations manage higher thresholds than others.
For low-income earners, the pressure intensifies dramatically. Across the EU, the overburden rate jumps to 29.1% for individuals at risk of poverty, defined as those living on an equivalised disposable income below 60% of the national median. In 2025, the EU median equivalised disposable income was €22,939 a year, or €1,912 a month. At EU level, 60% of this amounted to €1,147 a month. In Greece, 82.6% of people at risk of poverty spent more than 40% of their income on housing in 2025.
Macroeconomic Transmission and Market Impact
Rikke Skovgaard Nielsen, a senior researcher at Aalborg University, emphasized that economic contexts and welfare safety nets differ vastly between countries like Greece, Switzerland, and Denmark. The residual disposable income left after paying rent varies considerably, meaning the actual financial distress experienced by households cannot be measured by percentage thresholds alone.
Disclaimer: The information provided in this article is for educational and market analysis purposes only and does not constitute financial, investment, or legal advice. Always consult with a certified financial professional before making investment decisions.
