Close to half of Europe‘s population can only afford to buy the equivalent of a one-bedroom apartment or studio flat, a new study from TU Wien, in Austria, has found.
According to the study, Where Can You Still Afford to Live? – A Comparative Perspective on European Housing Affordability, which was published in the Journal of Maps, around 44% of Europe’s urban population can afford to buy less than 50 square metres of property, while two fifths (39%) cannot afford to even rent a property this size.
‘Hotspots of unaffordability’
“Our study reveals pronounced hotspots of unaffordability,” commented lead author Franziska Sielker, professor of urban and regional research at the Institute of Spatial Planning at TU Wien.
“It points to a substantial housing affordability crisis in the making. One that already disproportionately affects newcomers to the market as well as people who change their location frequently, for personal or professional reasons. This is the case in capital regions, major urban centres, coastal zones, and tourism-intensive alpine areas, alongside large rural supply gaps in rental markets.”
Property listings
The study was based on 22 million property listings collected through the ESPON HOUSE4ALL project. Researchers calculated the floor area that could be afforded using average regional incomes and used the results to produce municipal-level maps of housing affordability.
It found that more than 70% of Europe’s population live in regions where a 30-year mortgage based on an average income would purchase no more than 75 square metres.
Affordability pressures were acknowledged in all countries examined, however the extent varies from country to country – Portugal, Poland and the Netherlands were among the countries identified as having high levels of unaffordability.
In addition, major urban areas, including those around Paris, Berlin and Madrid, were among the locations most affected.
“The severity of the challenge is underestimated for most of the population. It’s important to emphasise that the problem has two sides: the cost side and the income side. In order to close the gap, it is important to be aware of both,” added co-author Dr Selim Banabak, a University Assistant at TU Wien. Read more here.
