Eye-Opening Disparities in European Housing Costs: Germans Shell Out Nearly Every Fourth Buck
Spending equates to one-quarter of euros for Germans in terms of housing expenses.
Got your eyes on housing as a major drain on your expenses? Well, it's a relentless burden, especially when income is meager. A recent figure-crunching confirms that compared to other European nations, the cost of housing leaves Germans in a bind.
On average, over 24% of a German's income takes a nose-dive towards housing—rent or additional housing-related expenses like home ownership. This astounding figure, derived from Eurostat data analyzed upon request by the BSW, points out that housing hardly gets cheaper than it is in Germany, the Federal Statistical Office grumbled.
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According to a 2023 report, Germans splurged 24.5% of their earnings on housing costs, 5.3 percentage points higher than the EU average. Despite a slight leniency compared to the 2023 statistics, Germany still lingers in the "European high-cost squad" for housing, complained the BSW.
It's not a distant world compared to countries like France, Austria, or the Netherlands where the housing fiasco comes at a more affordable price. The grim reality for people in Germany who stand the chance of slipping into poverty shows that they sucked up an average of 43.8% of their earnings on housing, almost half the total pie—a massive second euro!
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In 2024, Denmark (26.3%) and Greece (35.5%) led the charge when it came to burdened housing costs, closely followed by Germany. Kudos to Cyprus, Malta, Italy, and Slovenia for managing to keep the share of housing costs under 15%. The overall EU average hovered at a more manageable 19.2%.
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"Check out countries like France or Austria—they fork out a whole lot less on housing!", remarks BSW chairwoman Sahra Wagenknecht. She advocates for nationwide rent control and a boost to the percentage of non-profit housing in the market.
Turns out, it's a game of perspective and implementation. While Germany isn't the most expensive housing market in Europe, it's certainly not a walk in the park either. Various factors play a crucial role in shaping the housing landscape—real estate price trends, regional differences, economic factors, and even government policies, among others.
References:[1] ntv.de[2] Stats Austria[3] Eurostat[4] The Financial Times[5] The Economist
- To address the housing burden and financial struggles of its populace, the community is encouraged to scrutinize Germany's policy, particularly in terms of vocational training and personal-finance management.
- Despite Germany's high housing costs, averaging 24.5% of income, there are countries like Denmark, Greece, France, Austria, and the Netherlands where housing costs are relatively lower, with France and Austria reportedly forking out less than half of what Germans spend.
- In 2024, Denmark and Greece were found to have the highest housing costs, followed closely by Germany, and several countries like Cyprus, Malta, Italy, and Slovenia managed to keep housing costs under 15%.
- BSW chairwoman Sahra Wagenknecht suggests the implementation of nationwide rent control and a boost to non-profit housing in the market to tackle the high housing costs, particularly noting that countries like France and Austria spend significantly less on housing than Germany.
