Housing Costs: The Squeeze on Wallets in Germany, France, and Beyond
Germans allocate approximately one fourth of their earnings towards covering living expenses. - Residential Expenses: Germans Dedicate Around a Quarter of Their Income towards Accommodation
Let's dive into the housing cost trends across Europe and see how Germany, France, and other notable countries stack up against each other.
- *
Germans and French citizens, on average, spend slightly more of their income (slightly above the EU average) on housing compared to their counterparts in other European countries. However, housing costs in Germany are considerably higher than in France, Austria, or the Netherlands, with those at risk of poverty spending nearly every second euro on housing.
While housing costs in Germany may seem excessive, a look at the comparative housing cost percentages across Europe reveals an interesting contrast. Denmark and Greece have relatively higher housing costs compared to the EU average, whereas Cyprus, Malta, Italy, and Slovenia have comparatively lower costs.
Germany ranks among the highest for housing costs, but its average housing cost percentage isn't too far off from that of Sweden. France, in comparison, has housing costs just above the EU average, but noticeably lower than Germany.
"Housing in Germany is a poverty program for large parts of the population," BSW chairwoman Sahra Wagenknecht said in response to the data. She urged for a nationwide rent cap and a higher share of non-profit housing in the market, emphasizing that countries like France and Austria can manage with less spending on housing.
- *
Exploring the broader EU housing cost trends over the past decade (2015-2024), we see housing prices increasing by an average of 32%, with some countries experiencing a tripling of costs. The countries with the highest real house price growth include Portugal, Hungary, and Lithuania, while Italy and Finland saw declines.
Notably, housing affordability issues have led many young Europeans to delay leaving their parental homes, averaging 26.3 years before venturing out on their own.
To sum it up, housing costs in Germany are slightly higher than the EU average, and France and Austria have housing costs that are lower. While countries such as Denmark, Greece, Italy, and Malta have varying housing cost percentages compared to the EU average, citizens in Cyprus and Slovenia pay lower housing costs. Recognizing this disparity and learning from countries like France and Austria, combating high housing costs through policy changes and regulations could be a solution for a more affordable and equitable housing market.
In light of Germany's high housing costs, it is worth considering policy changes like a nationwide rent cap and an increase in non-profit housing to create a more affordable market, as shown in countries like France and Austria. To address personal-finance concerns of the community, further examination of vocational training programs could provide viable career paths, aiding in improving earnings and decreasing the percentage of income spent on housing.
