Housing, including utility bills, is the largest expense for Europeans and its share of household expenditure has risen significantly over the past two decades. Housing costs also represent a significant portion of disposable income.
\nIn the EU, on average, a fifth of disposable income is spent on housing costs. So, how much of your disposable income goes to housing and bills? Are you curious about the average in your country and how it compares to other European countries?<\/p>\n
What do housing costs include?<\/strong><\/p>\n For more information on share of housing cost in disposable income in EU here.<\/a><\/p>\n EU Parliament reporting: What is affordable housing?<\/strong> The increase of housing costs in the EU<\/strong> In December 2024, Parliament approved the\u00a0establishment of a special committee<\/a>\u00a0that should propose solutions on how the EU should tackle the issues with housing. The committee will operate for one year. This month, our newsletter is dedicated to exploring housing alternatives\u2014various models that demonstrate the possibility of a non-speculative, democratic, inclusive, and community-driven way of living across many European countries. Right now, individuals, collectives, and entire communities are actively creating housing solutions that ensure no one is left behind. Enjoy and let\u2019s get organised!<\/p>\n Editing by Ripess Europe![\"\"](\"https:\/\/ripess.eu\/wp-content\/uploads\/sites\/4\/2025\/02\/housing-costs-300x248.png\")
First of all, what exactly do “housing costs” include? According to Eurostat, the provider of this data, housing costs refer to the monthly expenses connected with a household’s occupancy of their accommodation, and this includes the cost of utilities such as water, electricity, gas, and heating.
\nFor homeowners, housing costs include mortgage interest payments, while for tenants, they include rental payments. It also includes expenses such as structural insurance, mandatory services and charges, regular maintenance and repairs and taxes.
\nIn 2023, on average in the EU, 19.7% of disposable income was dedicated to housing costs. This differed among member states, ranging from 11.6% in Cyprus to 35.2% in Greece.
\nDisposable income included all income from work (employee wages and earnings from self-employment); private income from investment and property; transfers between households; all social transfers received in cash including old-age pensions.
\nGreece (35.2%) is a clear outlier, as the second-ranked country, Denmark, is significantly lower at 25.9%, closely followed by Germany at 25.2%.<\/p>\n
\n![\"\"](\"https:\/\/ripess.eu\/wp-content\/uploads\/sites\/4\/2025\/02\/rise-of-housing-prices-300x300.png\")
A common way to assess whether housing costs are too high is by examining the housing price-to-income ratio. When housing expenses exceed 40% of a household\u2019s disposable income, it indicates financial strain and potential housing affordability issues.
\nIn the EU in 2023, 10.6% of urban households<\/strong> and 7% of rural households<\/strong> spent more than 40% of their disposable income on housing. The burden was particularly severe in Greece, where 31% of city residents<\/strong> faced housing costs above this threshold. In contrast, only around 6% of urban households in Slovakia<\/strong> experienced the same challenge.<\/p>\n
\nIn less than 10 years, between 2015 and 2023,\u00a0house prices in the EU<\/a>\u00a0rose on average by 48%. The biggest increase is marked in Hungary, where prices rose 173%, and the lowest in Finland, with just 5%.<\/p>\n
\nFor more information on housing costs in the EU and the initiatives taken by the European Commission to address housing issues, please read here<\/a>.<\/a><\/p>\n
\nOne key body is the Cooperative Housing International<\/a> which supports and connects housing cooperatives across different countries. These organizations advocate for sustainable, affordable, and community-led housing solutions, share best practices, and influence policies to strengthen the cooperative housing sector globally.
\nHousing cooperatives and non-profit alternative housing models vary across Europe, reflecting different legal frameworks, historical contexts, and social movements. In the Balkans<\/a>, cooperative housing is still developing, often driven by grassroots initiatives and social movements aiming to counter real estate speculation. Limited-equity housing co-ops and community land trusts (CLTs) are emerging, particularly in cities like Belgrade and Zagreb, where affordability is a major issue. In France<\/a>, cooperative housing models like habitats participatifs have gained traction, in Italy<\/a>, historic cooperative edilizie (housing co-ops) continue to play a significant role, often supported by regional governments, while new models and self-managed housing initiatives (e.g., co-housing projects) are expanding. Spain<\/a> has seen a strong rise in limited-equity cooperatives, particularly in Barcelona<\/a>, which provide sustainable alternatives to private ownership. Switzerland<\/a> has one of the most developed cooperative housing sectors, with Zurich and Geneva hosting large-scale, long-established co-ops that operate on a non-speculative basis, often receiving municipal support.<\/p>\n
\nSources: https:\/\/www.europarl.europa.eu<\/a>, https:\/\/www.euronews.com\/<\/a><\/em><\/p>\n