Europe’s housing crisis: 44% buy under 50 m²
Across Europe’s cities, 44% of people live where an average income buys less than 50 m² of home — roughly a small one-bedroom flat or studio. The Technical University of Vienna published the study on Thursday, 3 September, finding that densely populated towns and cities are bearing the sharpest strain. A further 39% of Europeans cannot afford to rent a home of that size.
The findings add to evidence that home prices have been rising faster than incomes for more than a decade. Areas around Paris, Berlin and Madrid are among the urban hotspots where housing has moved furthest out of reach.
A 30-year mortgage still falls short
More than 70% of Europe’s population lives in regions where a 30-year mortgage, based on average regional earnings, can buy no more than 75 m², the research found. Portugal, Poland and the Netherlands were identified among the countries with particularly poor affordability.
The pressure is not limited to city centres. High prices in metropolitan areas also spill into neighbouring regions, even though city incomes tend to be higher than in rural areas.
Tourist coasts face an extra squeeze
Popular coastal and mountain holiday areas are less affordable than other places, according to the maps. Second-home owners and short-term renters push up housing costs there, forcing local people away from their own communities.
The problem hits hardest for people entering the property market and those who need to move often for personal or work reasons. Rural areas also face a shortage of homes available to rent.
Researchers examined 22 million property listings from 30 European countries, using average regional incomes to calculate the floor space people could afford. Their municipal-level maps cover homes for sale and rent.
The figures have limits. They use estimated asking prices rather than completed sale prices, cannot show differences between neighbourhoods and do not include barriers such as the deposit needed to buy a home.
Topics: Housing · Tourism · Politics · Economy
Source: Europa Press / Mallorca.com