A growing number of Europeans are facing significant financial strain as they strive to meet housing costs, according to a recent report by a real estate agency cited by Euronews.
With housing expenses taking up nearly 40% of household incomes on average, many are being forced to cut back on essential and discretionary spending.
The survey reveals that one in six Europeans, or 16%, have reduced food intake and cut down on basic living expenses over the past year to keep up with rent or mortgage payments.
For over a third of respondents (37%), housing costs leave little room for additional expenses. A further 19% report struggling to make ends meet each month as housing costs continue to rise across the continent.
Housing Expenses Vary Widely by Country
While the report indicates that Europeans on average allocate 38% of their income to housing, regional variations highlight disparities in affordability. In Slovenia, housing demands the largest share of income at 43%, followed by Portugal at 42%.
In contrast, Swiss households dedicate just 30% of their earnings to housing, showing a relative advantage in disposable income.
Such costs are forcing difficult decisions for many. The report reveals that 80% of European respondents have been compelled to scale back on spending in other areas to afford their housing.
Social activities and vacations were most affected, with 41% reducing outings with friends and family and 40% opting to forego vacations and luxury items altogether.
Rising Dependence on Loans
To manage these burdens, an increasing number of Europeans have taken on debt. The report found that 15% of respondents have resorted to loans to cover their housing expenses.
Turkish respondents showed the highest rates of borrowing at 32%, followed by Bulgaria at 22% and Romania at 20%.
The ongoing economic challenges have prompted many to consider significant lifestyle changes.
Around a third (32%) of respondents are contemplating relocating to smaller towns, where housing is generally more affordable. A further 24% are even considering moving abroad for better financial stability.
Energy Bills Add to Financial Pressure
In addition to housing costs, rising utility bills are stretching budgets even further. Electricity costs, in particular, were noted as a major concern, with 18% of Europeans finding it difficult to cover these bills.
Greek respondents reported the highest rate of difficulty at 36%, underlining the impact of recent energy price hikes.
Satisfaction with Housing Remains High in Some Regions
Despite these financial pressures, satisfaction with housing quality remains strong in certain countries. The report found that Dutch and Romanian residents are among the most satisfied with their housing, with 84% expressing contentment.
Bulgaria followed closely, with 82% of respondents satisfied with their homes. This satisfaction is attributed to the good quality of housing, which helps offset some of the financial challenges.
The report sheds light on the growing financial sacrifices that many Europeans are making to keep up with housing expenses.
As the cost of living continues to rise, more households may need to reconsider their living arrangements, with smaller cities and even international moves becoming increasingly attractive options for those seeking relief from high housing costs.