Housing is one of the largest regular expenses for households, but its impact varies considerably across Europe. While some families can manage rent, mortgage payments, utilities, and maintenance without major financial difficulty, others spend a substantial part of their available income simply keeping a roof over their heads.

In 2025, an average of 7.7% of the European Union's population lived in households spending more than 40% of their disposable income on housing. This measure, known as the housing cost overburden rate, highlights the difference between having a home and being able to afford its ongoing expenses.

Greece Records the Highest Housing Cost Burden

The financial strain is particularly visible in Greece, where 26.4% of the population lived in households allocating more than 40% of disposable income to housing in 2025. This was more than three times the EU average, making Greece the country with the highest rate among the European countries included in the comparison.

Denmark followed among EU member states at 14.7%, while Germany recorded 11.2% and Sweden 10.8%. Estonia, Czechia, and Luxembourg also exceeded the EU average, although by smaller margins. Outside the EU, Switzerland reported a rate of 15.3%, while Norway reached 13.5%. Among candidate countries, Turkey recorded 10%, followed by Montenegro at 8.7% and Serbia at 7.9%.

At the other end of the scale, Cyprus had the lowest rate at 2.4%. Croatia recorded 3.2%, while Slovenia and Slovakia each stood at 3.5%. These differences demonstrate that housing affordability cannot be assessed through property prices alone. Income levels, rental arrangements, household expenses, and the support available to residents all influence the proportion of income required for housing.

Housing Expenses Extend Beyond Rent and Mortgages

Housing costs include more than monthly rent or mortgage interest. Regular expenses such as electricity, water, gas, heating, insurance, maintenance, repairs, and property-related taxes can also contribute to the total amount households spend on accommodation. Disposable income refers to the money remaining after taxes and social contributions, with social benefits included.

For example, two households may pay similar amounts for accommodation but experience very different levels of pressure if their incomes differ. A household with lower disposable income can face a much greater burden even when its monthly housing bill is relatively modest.

More Than 34 Million Europeans Face High Housing Expenses

The overall percentage provides only part of the picture. In absolute numbers, more than 34 million people across the EU lived in households spending over 40% of disposable income on housing in 2025. Germany had the largest affected population, with approximately 9.4 million people. France followed with 4.4 million, Spain with 3.5 million, and Italy with 2.9 million. Greece recorded approximately 2.7 million people affected, despite having a smaller population than several of Europe's largest economies.

Lower-Income Households Experience Greater Pressure

Housing expenses are especially difficult for people with limited financial resources. Across the EU, 29.1% of people at risk of poverty lived in households spending more than 40% of disposable income on housing in 2025. This compares with the overall population rate of 7.7%.

The situation was particularly severe in Greece, where 82.6% of people at risk of poverty experienced this level of housing expenditure. Denmark recorded 59.8%, while Switzerland reached 56.1%. Germany stood at 35%, above the EU average, whereas Spain, France, and Italy recorded lower proportions.

This disparity matters because housing is an essential expense that cannot easily be reduced. When a large share of income goes towards accommodation, less money remains for food, transportation, healthcare, education, savings, and unexpected costs. Even relatively small increases in utility bills or rent can therefore create significant financial difficulties.

Expert Insight

Dr Hannah Widmer from ETH Zürich explains that the problem is closely connected to the relationship between housing expenses and household earnings. She told Euronews Business: “The main drivers of housing cost overburden are rising costs for housing (be it rents or house prices, which are spiking in many cities) in relation to the modest growth in incomes, especially for the lower quantiles of the income distribution.”

Why National Comparisons Require Careful Interpretation

A high housing cost overburden rate does not necessarily mean that every household in a country faces identical circumstances. Rental markets, homeownership levels, welfare arrangements, and general living expenses vary significantly between European economies.

The amount of money remaining after housing payments is also important. Households in countries with higher living costs may face different consequences from households spending a similar proportion of income in less expensive locations. Energy prices and borrowing costs can add further pressure. Higher mortgage interest payments affect homeowners with variable-rate loans or those refinancing, while increases in electricity and heating expenses can affect both tenants and property owners.

The burden is considerably heavier among lower-income households, demonstrating how housing expenses can limit financial stability and access to other essential needs. Property prices, rents, utilities, and income growth all influence the situation. Understanding these factors together provides a more complete picture of why housing affordability differs across Europe and why some households remain particularly vulnerable to rising living costs.