EU house prices rise faster than incomes; gap widens by 6.8 per cent over the past decade

Brussels – Buying a home in Europe has become more difficult than it was ten years ago. In 2025, the ratio of house prices to household income in the European Union was 6.8 per cent higher than in 2015. In other words, over the last decade, house prices have risen faster than disposable incomes, reducing households’ purchasing power. Eurostat, the EU’s statistical office, released the data, which nevertheless highlight significant differences between Member States: the ratio has risen in 17 countries, while it has fallen in the other 10.

 The most marked increase was in Portugal, where the indicator rose by 60.8 per cent between 2015 and 2025. Next come the Netherlands, with an increase of 34.3 per cent, Hungary (+26.5 per cent), the Czech Republic (+25.8 per cent) and Spain (+24.5 per cent). These are the countries where house prices have risen the most relative to income growth.

 At the opposite end of the scale is Romania, which recorded the largest fall in the ratio, amounting to 42.8 per cent. It is followed by Finland (-25.2 per cent) and Bulgaria (-16.2 per cent). This does not necessarily mean that buying a home in these countries has become cheaper in absolute terms, but rather that incomes have risen faster than house prices, or that house prices have risen less. 

A further indicator allows assessment of the situation relative to the long-term average, calculated since 2000. On this basis, the ratio shows two peaks: in 2007, ahead of the global financial crisis, when it stood 7.9 per cent above the historical average, and in 2022, with a positive deviation of 7.4 per cent.

In Italy, the picture is less critical when viewed relative to the historical average. In 2025, the house price-to-income ratio stood at 86.9 points, compared with a long-term average of 100. This figure indicates that the ratio of house prices to household disposable income remains approximately 13.1 per cent below the average for the period 2000–2025. The situation in Italy is therefore relatively more favourable than in the past, although the figure shows a slight deterioration compared with the 85.6 points recorded in 2024 and the 85.5 points in 2023. However, the indicator does not capture regional differences within the country. It does not rule out the possibility that in large cities with higher housing demand, access to housing remains particularly difficult.

Following its peak in 2022, the indicator in the EU fell in 2023 and 2024 before returning to slightly above average in 2025, up 0.03 per cent. This is a sign that, despite a correction compared with previous years, pressures on the European property market remain unresolved. But it is also a sign that the housing crisis is taking a heavy toll on Europeans’ pockets.