The New Housing Trend Report 2024, compiled by the real estate agency RE/MAX Europe, revealed that over the past year, more than one in ten Europeans had to cut back on spending for food and essential everyday items to afford their housing.
The survey, which involved thousands of participants, indicated that housing costs in Europe have increased by an average of 54% over the last 12 months. More than a third of Europeans (37%) stated that while they are managing to pay for housing, money remains tight. Nearly one in five (19%) reported that they are struggling to make ends meet.
On average, European households allocate 38% of their income to rent or mortgage payments and utility bills, with the highest percentages seen in Slovenia (43%) and Portugal (42%). In contrast, residents of Switzerland, for instance, report a lower burden (30%).
80% of survey participants indicated that they have started to reduce their everyday expenses to afford housing.
About 41% of respondents chose to cut back on social activities, while 40% reduced spending on leisure and luxury items.
Approximately 16% of survey participants reported that they have cut back on food expenses, with the highest proportion—26%—coming from Austria and Finland.
When cutting costs isn't enough
And that's not all. 15% of Europeans reported that they were forced to resort to some form of borrowing to cover housing costs. This trend is most pronounced in Turkey (32%), Bulgaria (22%), and Romania (20%).
About a third of respondents who used loans are financing their housing expenses with credit cards, while slightly fewer, 27%, turned to relatives and friends for the necessary funds. A quarter of respondents used overdrafts, and nearly a quarter (23%) opted for unsecured bank loans to cover housing expenses.
In an uncertain future, nearly half (48%) of respondents across Europe expect further increases in housing costs over the next 12 months.
In response to grim forecasts, a significant portion of Europeans is considering radical changes: 32% are willing to move to a smaller town or village for a more affordable living situation, while 24% are open to relocating abroad for the same reason. However, about 21% are not ready to move at all.
Sustainability is not a priority
18% of surveyed Europeans indicated that they are struggling to pay their electricity bills, with this figure particularly high in Greece, where 36% of residents face serious challenges in managing such expenses.
Due to high costs, environmental improvements in the home have taken a backseat for many families, whose priority is paying immediate bills rather than long-term sustainability.
Still, over a quarter of respondents (27%) are considering installing solar panels, and slightly fewer (25%) are looking into double glazing. Rainwater harvesting systems and heat pumps are less of a priority, with only one in five respondents indicating they would consider installing them.
Nearly half of those surveyed stated that increased government support or subsidies could encourage them to install energy-saving systems.
Where in Europe are people satisfied with their housing costs?
Despite concerns about housing costs, satisfaction levels remain high in many European countries.
The most satisfied residents are in the Netherlands and Romania: 84% of respondents reported being satisfied. These countries have relatively high homeownership rates and good housing quality, which may explain such results.
On average, 76% of Europeans are satisfied with their housing. Much fewer residents in Malta, the Czech Republic, Slovenia, Hungary, Turkey, Greece, and Ireland feel the same way.
Dissatisfaction stems from various issues, such as the need for more space—especially in Poland, where 58% of residents cite this as a reason for their dissatisfaction with their housing conditions. The average across Europe is 37%.
Cost is another significant issue: one-third (33%) of dissatisfied respondents reported that their housing is too expensive. This figure reaches 53% in Malta, 48% in Ireland, and the same in Finland.
Additionally, nearly half of dissatisfied residents in Portugal pointed to issues with dampness or mold, while one in five respondents in the Netherlands identified hygiene and pests as their primary concern.