Housing costs are taking more than 40% of disposable income for millions of people across Europe, with Greece facing the highest burden among the countries surveyed. New Eurostat figures for 2025 reveal significant differences in how much households spend on rent, mortgages, utilities and other housing-related expenses, highlighting the growing financial pressure on residents in several European countries.
The figures come as housing affordability becomes an increasingly serious concern across the continent. According to Eurostat, house prices in the European Union rose by an average of 69% between 2015 and the second quarter of 2026. Prices more than doubled in some member states, while rents and household energy bills have also increased.
The European Council has described the situation as a housing crisis driven by rising property prices and increasing housing costs. For households whose incomes have not kept pace with these increases, finding affordable accommodation has become increasingly difficult.
One of the key measures used to assess this pressure is the housing cost overburden rate. Eurostat defines this as the share of people living in households where total housing costs account for more than 40% of disposable income. Across the EU, the rate stood at 7.7% in 2025.
Dr Hannah Widmer of ETH Zurich told Euronews Business that the main reasons behind the growing burden include higher rents and house prices, particularly in cities, combined with relatively modest income growth. She noted that lower-income households are especially exposed because housing costs have increased faster than their earnings.
Eurostat’s calculation covers several types of housing expenses, not just rent or mortgage payments. These include mortgage interest, water, electricity, gas, heating, insurance, maintenance, repairs and housing-related taxes. Disposable income, meanwhile, refers to the money a household has left after taxes and social contributions, including income from social benefits such as pensions.
Among European countries with available data, Greece recorded the highest housing cost overburden rate in 2025. The figures cover the 27 EU member states, two European Free Trade Association (EFTA) countries and five EU candidate countries.
In Greece, 26.4% of the population lived in households spending more than 40% of their disposable income on housing. That is more than three times the EU average.
Denmark recorded the second-highest rate among EU member states, at 14.7%, followed by Germany at 11.2% and Sweden at 10.8%. Other EU countries above the European average included Estonia, at 8.8%, Czechia at 8.2% and Luxembourg at 8.1%.
The pressure is also considerable in parts of Europe outside the EU. Switzerland recorded a housing cost overburden rate of 15.3%, while Norway stood at 13.5%. Among EU candidate countries, Turkey recorded 10%, Montenegro 8.7% and Serbia 7.9%. All three were above the EU average.
However, the figures do not mean households in these countries experience the same financial difficulties. Rikke Skovgaard Nielsen, a senior researcher at Aalborg University, told Euronews Business that the reasons behind the figures in Greece, Switzerland and Denmark differ because of their economic conditions and welfare systems. The consequences for households are also different.
The amount of money people have left after paying for housing varies between countries, as do everyday living expenses. This makes the impact of housing costs more complicated than a comparison of percentages alone might suggest.
At the other end of the ranking, Cyprus recorded the lowest housing cost overburden rate in Europe, at 2.4%. Croatia followed at 3.2%, while Slovenia and Slovakia both recorded 3.5%.
The figures also show that the housing burden is not determined by property prices and rents alone. Dr Marietta Haffner of TU Delft explained that when housing expenses, including energy prices, interest rates and inflation, rise faster than household incomes, housing takes up a larger share of available money. More people can then cross the 40% threshold.
Haffner also warned that increasing energy costs could become a major factor pushing housing expenses higher over the following year. This is particularly important for households already struggling to cover rent or mortgage payments alongside electricity and heating bills.
The differences between countries also reflect how people access housing. Widmer explained that the structure of the housing market, the availability of private rentals, welfare support and broader economic conditions all influence the likelihood of households experiencing housing cost overburden.
People renting from private landlords often face a higher housing cost burden than other groups. However, Widmer cautioned against treating the figures as a straightforward measure of living standards. The experience of a household spending more than 40% of its income on housing can differ considerably between countries, depending on social protection, income levels and the quality of available accommodation.
Looking at the total number of people affected provides another perspective on the scale of the problem. More than 34 million people across the European Union lived in households spending over 40% of their disposable income on housing in 2025.
Germany recorded the highest number, with approximately 9.4 million people affected. Turkey followed with 8.6 million, although it is outside the EU. France recorded 4.4 million, Spain 3.5 million and Italy 2.9 million. Greece ranked sixth, with 2.7 million people living in households facing housing cost overburden.
These figures illustrate why the percentage ranking and the total number of affected residents tell different stories. A country with a relatively high overburden rate does not necessarily have the largest number of people affected, as population size also plays a major role.
Income is another important factor. Housing costs place a much heavier burden on people with limited financial resources. Across the EU, the housing cost overburden rate among people at risk of poverty reached 29.1% in 2025, compared with the overall population rate of 7.7%.
Eurostat defines people at risk of poverty as those whose equivalised disposable income falls below 60% of their country’s national median. Equivalised income adjusts household income to account for differences in household size and composition, making comparisons between different types of households more meaningful.
In 2025, the EU median equivalised disposable income was €22,939 annually, equivalent to approximately €1,912 per month. The 60% threshold at EU level was €1,147 per month.
Greece again recorded the highest figure among the countries compared. A striking 82.6% of people at risk of poverty in the country lived in households spending more than 40% of their disposable income on housing. In practical terms, more than four out of every five people in this income group faced the burden.
Denmark followed at 59.8%, while Switzerland recorded 56.1%. The rate was also above 40% in Sweden, at 46.8%, Norway at 43.8% and Czechia at 43.4%.
Germany recorded 35%, also above the EU average of 29.1%. Spain stood at 28.3%, France at 25.4% and Italy at 21.7%, all below the European average.
Cyprus again had the lowest rate, at 7.6%, followed by Albania at 8.2%. Croatia recorded 14.9%, while Slovakia stood at 15.4%.
Taken together, the figures show that housing affordability remains a significant challenge across Europe, particularly for people on lower incomes. While the scale of the problem varies according to national housing markets, wages and welfare arrangements, the gap between rising housing expenses and household incomes continues to leave millions of Europeans with less money available for other essential needs.
