Eurofound study: house prices outpace minimum wages, posing a problem for young workers

Brussels – More money, but still impossible to have economic independence and, above all, a home. The EU paradox is all here, in the freshly published analysis on the minimum wage conducted by Eurofound, the foundation for the improvement of working and living conditions. The good news is that the minimum wage in most EU countries increased substantially in 2025, outpacing inflation and increasing the purchasing power of low-income workers. However, the publication points out, “high housing costs have a disproportionate impact on minimum wage earners, limiting their ability to afford housing and reaching independence.”

Housing costs are thus rising more than wages, and the renewed purchasing power is ultimately of little use for staying financially secure and living without the concern for rent and mortgages. “This is particularly true for younger workers,” Eurofound warns. The analysis shows that those earning a minimum wage – which is not guaranteed everywhere, in the EU – spend on average 34.8 percent of their disposable income on housing, compared to 26.2 percent for those on higher incomes. This disparity is even more pronounced for young workers.

 A more detailed look at age groups shows that almost half (48.9 percent) of young minimum wage earners aged 16-34 live with their parents, compared to only 29.1 percent of their better-paid peers. “This suggests that current minimum wage levels may be a barrier to independent living for young workers.” A reminder to the European Commission, which has made the housing issue a priority of this European legislature.